As you might recall, I was rear ended while on my motorcycle last fall. The driver was covered under the owners insurance. The problem seems to be that his insurance and mine are both State Farm. I have been told (informally) that my claim has already exceeded his coverage and that the remaining claim would need to go onto my uninsured driver coverage. I realize that could be legitimate, but it just seems wrong to me. I'd love to hear y'alls considerably more informed opinion. Thanks.

Not a lawyer, but my understanding is that's the way it works.

Once the insured's coverage limit is reached you either go to your uninsured/underinsured coverage and/or sue the responsible party (in your case the driver I imagine) for the difference.

Not a lawyer, but the limit of coverage is the limit of coverage. According to my State Farm agent, them paying off on your uninsured motorist coverage has no affect on you premiums.

Personally, I think that sounds like a much better deal than the person who screwed up in a borrowed car did 30k in damage to another car then went through our ranch fence. It was only a few hundred dollar repair, but as the owner of the car had Nationwide with the state's minimum 10k in coverage, the damaged parties got a little less than a third of their damages covered.

That's why you have UM/UIM coverage. Laws vary from state to state (obviously) and they can be wildly different in LA, but this is pretty cut & dry. I'd bet it's a correct statement of the situation.

-Rob

yup yup and yup.

I can tell you stright out that SF is a good company to be working with, but UM/UIM coverage can get sticky where you are on a motorcycle, that is sometimes excluded from that type of coverage unless you have a rider on your policy for motorcycle. I suggest getting a local attorney signed up.

Timdogg6, Esq.

quote:

Originally posted by Timdogg6:
yup yup and yup.

I can tell you stright out that SF is a good company to be working with, but UM/UIM coverage can get sticky where you are on a motorcycle, that is sometimes excluded from that type of coverage unless you have a rider on your policy for motorcycle. I suggest getting a local attorney signed up.

Timdogg6, Esq.

Everything he said, except the bit about SF being good to work with. In fact, when I was still in private practice, my boilerplate UM/UIM breach of contract complaint was pre-filled with State Farm's resident agent information. YMMV, of course, but at least a consultataion with an attorney in this case would be advisable.

-Rob

Yep this is why you buy UM, for underinsured, uninsured situations. You are hedging against the possibility that an accident will happen with someone that buys minimum or no coverage.

You should consult an attorney with motorcycle accident experience, Russ Brown is what I call an attorney aggregator, he does the marketing nationwide and hooks you up with a local motorcycle experienced attorney, it at least saves you interviewing a bunch to find out who specializes in your area.

http://www.russbrown.com/

His web page at least will help you understand the process it has some good information.

quote:

Originally posted by BurtonRW:

quote:

Originally posted by Timdogg6:
yup yup and yup.

I can tell you stright out that SF is a good company to be working with, but UM/UIM coverage can get sticky where you are on a motorcycle, that is sometimes excluded from that type of coverage unless you have a rider on your policy for motorcycle. I suggest getting a local attorney signed up.

Timdogg6, Esq.

Everything he said, except the bit about SF being good to work with. In fact, when I was still in private practice, my boilerplate UM/UIM breach of contract complaint was pre-filled with State Farm's resident agent information. YMMV, of course, but at least a consultataion with an attorney in this case would be advisable.

-Rob

X2 for dealings with State Farm. I no longer do litigation, but I suspect there are still some marks from my boot treads on some asses at SF.


But, in this instance, if the at fault party's policy limit is reached, then you will need use your uninsured motorist coverage to make up the difference. If you haven't already waived the claim by accepting insurance proceeds from the other motorist, you might be able to sue the other motorist for damages, and collect from the motorist personally if 1) you get a damages award in excess of policy limits and 2) the other motorist actually has reachable assets to satisfy the judgment, and you don't mind waiting the time for the case to work through the courts.

Thanks for the quick replies y'all. I guess my biggest issue is how do I know what his coverage limits were?

quote:

Originally posted by parallel:
Thanks for the quick replies y'all. I guess my biggest issue is how do I know what his coverage limits were?

You would need to see the other driver's policy or a certificate of insurance to know for certain. You can request it from your contact at your insurance company, but I would be surprised if they give it to you without a fight.

As I understand, the person driving the vehicle was not the owner but had permission of the owner to drive the vehicle so the vehicle insurance is primary. After they have paid the limit of the policy, they are no longer involved. Which is where you are now.

My question would be "Does the driver of vehicle own a vehicle and if he does is it insured under a separate policy?" If he does (at least in Texas) that coverage would be secondary and your UM/UIM would not come into play until his limits are exhausted.

quote:

Originally posted by 610:
My question would be "Does the driver of vehicle own a vehicle and if he does is it insured under a separate policy?" If he does (at least in Texas) that coverage would be secondary and your UM/UIM would not come into play until his limits are exhausted.

That kind of policy stacking is one of those extremely state-specific areas of insurance law and frequently changes over the course of decades as legislatures respond to lobbyists and new case law.

-Rob

State Farm may be off the hook at the limits of the policy but I wouldn't think the owner or driver would if you choose to go after them.
They may have an umbrella policy or some other insurance that might pay. If these individuals are low net worth types there may or may not be anything else to get.
I would at least consult a lawyer but find someone that's not advertising on the back of the phone book.

quote:

Originally posted by 911Boss:
Not a lawyer, but my understanding is that's the way it works.

Once the insured's coverage limit is reached you either go to your uninsured/underinsured coverage and/or sue the responsible party (in your case the driver I imagine) for the difference.

Same situation, not a lawyer. But as long as you're made whole and they pay everything, who cares??? Usually even though your insurance pays, if it's not your fault, your rates generally do not go up.

I'm just asking: what is the problem if it goes to your Uninsured coverage as long as you're made close to whole?

quote:

Originally posted by Rey HRH:
I'm just asking: what is the problem if it goes to your Uninsured coverage as long as you're made close to whole?

I guess I have a hard time believing that rates won't go up after making a claim against my insurance. If that's the case then I guess there is no problem.

I don't intend to sue anyone so long as I'm made whole, I (and even more so the wife) just have a hard time with having to file a claim against our insurance when we've not had to in 30 years.

Have you called your agent or asked State Farm to see if it will effect your rates?