New York State Supreme Court Judge Arthur Schak just might win the award for “Most Entertaining Decision in 2011″.  Of course, It doesn’t hurt that Judge Schak’s decision from King’s County in Taveras v. American Transit Insurance Company, 2011 NY Slip Op. 51831, does outstanding justice by holding an insurance company accountable for bad faith practices — something that happens all too often but is rarely brought to light.

This is how the decision begins:

In this insurance bad faith action the conduct of defendant AMERICAN TRANSIT INSURANCE COMPANY (AT) reminds the Court of the testimony given by Jack Nicholson’s character, Marine Colonel Nathan Jessup, in the 1991 film, A Few Good Men. When examined by a defense attorney, the Tom Cruise character, Navy Lieutenant Daniel Kaffee, about whether Colonel Jessup ordered the hazing of a Marine, which went awry, at the Guantanamo Bay Naval [*2]Base, the lawyer and witness had the following colloquy:

Col. Jessup:You want answers?

Lt. Kaffee:I think I’m entitled to them.

Col. Jessup:You want answers?

Lt. Kaffee:I want the truth!

Col. Jessup:You can’t handle the truth!

Defendant AT, in the instant action, refuses not only to acknowledge the truth, but to handle the truth!

The gist of the case is that American Transit represented for many years to several people injured in a car wreck that it insured the driver who caused the crash.  At trial, the injured people said they were willing to settle the case within the amount of the negligent driver’s policy.  However, the company refused to settle despite overwhelming evidence in favor of the injured people.  At the end of trial, the jury returned a verdict far, far in excess of the negligent driver’s policy.

The result?  An award of $2,250,000 for the driver against his own insurance company for bad faith. 

This type of bad faith activity is not exclusive to New York City.  In Upstate New York, prosecution of our auto and injury cases also include fights with insurance companies as they attempt to engage in bad faith practices too frequently, keeping injured people from receiving due compensation and putting negligent parties at great financial risk.

Great job, Judge Schak.  It’s about time these companies were held accountable.

Thanks for reading!
_________________________________
Christina Bruner Sonsire, Esq.
NY & PA Injury & Malpractice Lawyer
Ziff Law Firm, LLP
303 William Street
Elmira, New York 14902-1338
csonsire@zifflaw.com
Office: 607.733.8866
Toll-Free: 800.ZIFFLAW (943.3529)
Web:zifflaw.com
Blog: NYInjuryLawBlog.com

An online driving course in New York State offers motorists many benefits.

Online driving courses make sense for all motorists. Successfully completing a course (on your schedule) in New York State will lower your insurance premiums a minimum of 10 percent for three years, may reduce four points on your license (if you have violations) and will refresh your skills.

Like most people, I took the online course to lower my insurance premiums, but I found the course very informative and educational.

Insurance.com says that if you’re between 16 and 25, you can save about 15 percent each year on your auto insurance for taking a defensive driving class, and those over the age of 55 can get a discount of 5 percent.

According to the blog Lifehacker, online courses are about $35, depending on the type of class you have to take, and they usually take four to eight hours. They often give you several weeks to finish the course. Each time you sign in, you’re returned to where you last worked.

The New York Department of Motor Vehicles has a great website about its Point & Insurance Reduction Program. Please check it out.

Also check out the state’s list of approved courses.

Drivers in Elmira, Corning and the Twin Tiers can save some money – and make our roads safer for everyone – by taking an online course. It’s that easy. Save money and save lives. That’s a great combination!

Have you taken an online driving course? What tips do you have for my readers? Did you find the course challenging? Please share your thoughts with your neighbors!

Thanks for reading.

Jim
__________________________________________

James B. Reed
NY & PA Injury & Malpractice Lawyer
Ziff Law Firm, LLP
Mailto: jreed@zifflaw.com
Office: (607) 733-8866
Toll-Free: 800-ZIFFLAW (943-3529)
Web: www.zifflaw.com
Blogs: NYInjuryLawBlog.com and
NYBikeAccidentBlog.com

Combine bad driving with a dangerous road – and you get a serious accident in Big Flats, NY.

A bad accident in the news highlights the dangers of Chemung County’s Route 64 – “Four People Sent to Hospital After Accident” recently reported at WETM-TV.com. I pasted the full story below.

I hate to say I told you so, but this recaps some information I wrote about in the post “Rural Roads Pose Greatest Danger to Drivers” when I wrote about some of the most dangerous roads in our region.

Chemung County’s Route 64 was one of the risky roads I specifically addressed – it’s a country road that has taken on the heavy traffic of two or three major shopping centers, car dealerships, popular restaurants, businesses, organizations and more.

This accident also highlights the dangers that occur when drivers decide to take unsafe left turns without making sure that there is not oncoming cars that have the right of way.

The reporting on this accident makes it appear that the 68-year-old driver, Gisele Maurer,  made a dangerous (and unlawful!) left turn that caused this horrible collision. The accident badly injured her passengers.

If the news accounts of how this collision occurred are accurate, it would appear that Ms. Maurer’s injured passengers would have a valid claim against Ms. Maurer due to her negligent operation of her car, negligence which caused the accident and hence their injuries.

Of course, the driver of the pickup, Devaron Davis of Elmira, NY, whom Maurer turned in front of, would also have a valid claim if he was injured in this collision.

Thanks,

Jim

_________________________________
James B. Reed
NY & PA Injury & Malpractice Lawyer
Ziff Law Firm, LLP
Mailto: jreed@zifflaw.com
Office: (607)733-8866
Toll-Free: 800-ZIFFLAW (943-3529)
Web: www.zifflaw.com
Blogs: NYInjuryLawBlog.com and
NYBikeAccidentBlog.com

“Four People Sent to the Hospital After Accident on County Route 64″

Reported by: Stacey Minchin (sminchin@wetmtv.com)

Published: 12/28 6:56 pm

A two-car accident on County Route 64 sends four people to the hospital.

The Chemung County Sheriffs Office says around 1 p.m. Monday afternoon, 40-year-old Devaron Davis of Elmira, was driving a pick-up truck west on County Route 64.

The other driver, 68-year-old Gisele Maurer of Corning, went to make a left-hand turn at the intersection with Commerce Center Road and turned in front of the oncoming truck.

The impact of the crash, caused the Altima to hit a Dodge Caravan driven by 40-year old Michaela Baker of Addison. She had been stopped at a light in the exit lane off of Route 17.

All four passengers in Maurer’s car were taken to Arnot Ogden Medical Center.

Both Davis and Maurer’s vehicles were towed from the scene.

Baker’s car did not receive any damage.

The accident is still under investigation.

A local man and woman were very seriously injured last week in a car accident that’s cause is still unknown. WETM reported the incident in the story “Southport Woman in Critical Condition After Crash” (pasted below). The woman veered out of her lane and hit a bakery truck in the oncoming traffic on Route 352. The truck driver was seriously injured too.

A crash like this raises a lot of questions: “What happened?” and “Why?” And then “What happens next?”

After an auto accident, that question is strongly connected to Auto Insurance. How does it work to cover damages and injuries? It’s a complicated topic, which I’ve helped many clients understand. There are even a different set of rules when motorcycles are involved, a topic I write about frequently on my motorcycle blog, the NY Biker Law Blog.

In the Route 352 accident, the driver of the car, who appears to be at fault, will have coverage for her injuries through the No-Fault portion of her policy. The bakery truck driver was likely working at the time of the accident, meaning that rather than No-Fault, his Worker’s Compensation carrier would be responsible for paying his medical bills and lost wages.

What is “No-Fault” Insurance?

We have an FAQ section at ZiffLaw.com devoted to the legal issues our firm covers, from injuries and accidents to family law; bankruptcy, medical malpractice to real estate. There’s a section explaining No-Fault coverage and how it works.

No-Fault Insurance in New York state means that the insurance carrier for your vehicle, rather than the insurance carrier for the other vehicle, pays your medical bills or lost wages. This is true regardless of who was at fault in causing the accident, hence the name.

Some No-Fault benefits:

• All No-Fault policies in New York are required to provide TOTAL coverage of no less than $50,000 for both medical costs and lost wages.
• No-Fault covers hospital and medical expenses.
• No-Fault covers lost wages at 80%, up to $1,000 per month (that’s the N.Y. minimum, some policies pay more) for a period not exceeding three years

What doesn’t No-Fault cover?

No-Fault does not apply to property damage claims. Such claims are usually paid for by the insurance carrier for the vehicle that caused the collision or by your carrier if you carried collision coverage.

No-Fault does NOT apply to motorcycles. Check out the explanation in my motorcycle insurance FAQs to see how motorcyclists are treated differently, or order a free copy of my book, “Would You Ride Your Motorcycle Naked?” It explains how many motorcyclists are riding “naked” because they don’t have the proper insurance coverage – and don’t even realize it.

It’s sad when accidents happen and people get injured. I think about Chris Ackley, the truck driver, just doing his job and probably a family and children relying on him at home.  He did nothing wrong, and yet he is now laying in a hospital bed.  No one yet knows why the accident happened, why the other driver left her lane. We have seen it happen many, many times in other cases. She could have been distracted by her cell phone, texting, changing the radio station, eating, or even putting on nail polish, the cause of a fatal accident I recently blogged about in the post “‘Nail Polish Crash’ Driver Sentenced for Causing Fatal Motorcycle Accident.”

Thanks for reading and please drive safely!

Adam

_______________________________
Adam M. Gee, Esq.
NY and PA Injury and Accident Attorney
The Ziff Law Firm, LLP
303 William Street
Elmira, NY  14901
Phone: (607)733-8866
Fax: (607)732-6062
Email: agee@zifflaw.com
www.zifflaw.com

Visit the NY Biker Law Blog at www.NYBikerLawBlog.com!

Southport Woman in Critical Condition After Crash

Reported by: Naveen Dhaliwal (ndhaliwal@wetmtv.com)

BIG FLATS – A Southport woman is in critical condition in Rochester.

The Chemung county sheriff says the crash happened about 10:15 am on Thursday morning on State Route 352 in the Town of Big Flats.

They say Christina Pappas of Southport was driving her jeep Cherokee westbound.  She veered into the eastbound lane and hit a Stroman’s bakery truck.

The Sheriff says the truck driver is 52-year-old Christopher Ackley.  Ackley is in stable condition at a local hospital.

Pappas is in critical condition in Rochester.  The Sheriff says the road was closed for about an hour and a half.  The road is open now.

For years, you used to hear that the Camaro was the most stolen car in America. It led to General Motors/Chevrolet developing the first “key with a chip” in the ’90s. Vehicle Anti-Theft Systems have gone far beyond an electronic resister built into the key.

Car makers have added alarms, keypad entry, engine immobilizers that prevent hot-wiring, VIN-etched windows, and tracking services like GM’s OnStar or Ford’s Rescu, to mention a few innovations. There is a slew of aftermarket anti-theft accessories too, from hidden engine kill switches to steering column collars and steering wheel locks.

Yet with all these precautions, hundreds of thousands of cars are stolen every year in the United States. The Highway Loss Data Institute just released a list of the Top 10 Most Stolen Cars. I came across the list and photos at CNNMoney.com recently.

The car companies know these cars are coveted and valuable. They are loaded with all the latest anti-theft technology.

Not only would any of these vehicles carry a hefty price tag at the dealership, they are going to cost you extra on your insurance premiums. Below, I’ve included the list of the Top 10 Most Stolen Cars, along with the average insurance payout per claim.

Insurance companies base their premiums on two things: The likelihood they’ll have to pay you, and what they expect to pay out if they DO have to pay you. So for any of these vehicles, it’s a double whammy. You will be paying a lot more for your insurance, even if you live in an area that feels safe and low-crime.

Higher Risk, Higher Premiums

Here’s the list of most stolen vehicles, with the Cadillac Escalade at No. 1. As you read this chart, I want you to keep in mind just one more figure … on average for all vehicle losses, insurance companies pay out $14 per passenger vehicle for theft claims in America. That means the Escalade costs the insurance companies 9 times the average cost in payouts. What do you think that does to the premiums they charge?!

Some people get a kick out of driving a car that’s coveted by other people. They catch people glancing at it, get asked about it and get to describe all its great features. And an advanced vehicle, with great safety features, may save you some money on your premiums for reducing the chance of serious injuries in an accident. Overall, however, there are vehicles which are safe, not showy, and a better choice if you want to save money on your car insurance.

My colleague, personal injury attorney Jim Reed wrote a great book, “Learn the Five Secrets to Buying Auto Insurance in NY”, which is full of tips and advice that will help youi choose your auto insurance. You can order it free from our firm by clicking on the link.

Thanks for reading,

Adam
_______________________________
Adam M. Gee, Esq.
NY and PA Injury and Malpractice Attorney
The Ziff Law Firm, LLP
303 William Street
Elmira, NY  14901
Phone: (607)733-8866
Fax: (607)732-6062
Email: agee@zifflaw.com
www.zifflaw.com

My book, “Would You Ride Your Motorcycle Naked?” It is available FREE to New York and Pennsylvania bikers; follow the link to order your copy today.

The Elmira Star Gazette reported that Steuben County officials identified the driver in a one car crash that occurred at about 5:00 A.M. on Wednesday, June 30, 2010, in Hornellsville.

Sheriff identifies driver in accident that injured 9

The Steuben County Sheriff’s Office named the driver in the one-car accident that injured nine teens Wednesday morning.

Six of the teens remain hospitalized today, deputies said.

The investigation is ongoing, the sheriff’s office said.

As I reported in an post earlier today, this terrible tragedy highlights a number of issues all parents need to consider.  Aside from the obvious concerns about underage drinking and teen drivers, an accident such as this with multiple victims raises several important questions regarding auto imsurance coverage.

Please take the time to read my earlier post, and do not hesitate to contact me if you have questions about your own coverage.  Many times coverage questions are asked after an accident occurs, and generally that is just too late.

Thanks for reading,

Christina

_________________________________
Christina Bruner Sonsire, Esq.
New York and Pennsylvania Lawyer
Ziff Law Firm, LLP
303 William Street
Elmira, New York 14902-1338
csonsire@zifflaw.com
Office: 607.733.8866
Toll-Free: 800.ZIFFLAW (943.3529)
Web: zifflaw.com
Blog: NYInjuryLawBlog.com

A horrific accident involving nine teenagers occurred at approximately 5:00 A.M. on Wednesday, June 30, 2010, in Steuben County, New York (near Corning).  Aside from highlighting the dangers associated with underage drinking and teen drivers, the accident raises several critical insurance coverage issues that every parent should understand.

According to the Elmira Star Gazette (full article pasted below, nine teens were injured in a one car accident in the Town of Hornellsville following an underage drinking party.

The parents of the nine injured teens are facing — or surely will face — tough questions with respect to how or if their children will be compensated as the teens begin the long road to recovery.

In general, parents of children injured in one-car motor vehicle accidents involving multiple passenger need to be aware of the following insurance coverage information:

1.  BASIC NO-FAULT COVERAGE – New York State Insurance Law requires every driver to provide at least $50,000 of Personal Injury Protection (“PIP”) to each passenger of his vehicle regardless of whether he caused the accident or not.  This type of insurance is generally referred to as “No Fault Insurance” because it is triggered even if the driver was not at fault.

What does this mean?  Every passenger in a vehicle is entitled to $50,000 of PIP coverage under the driver’s insurance policy in the event the passenger is injured in an accident.  In general, PIP covers economic losses such as lost wages and medical bills.

Why is this important?  Here, assuming the driver had proper insurance coverage, all nine teens (the driver is entitled to PIP benefits as well) are likely entitled to receive up to $50,000 to compensate them for their economic loss.  In addition, a passenger may be able to collect No Fault PIP benefits under his own policy once PIP iunder teh driver’s policy is exhausted.  This is called “stacking” PIP coverage, and it often allows a passenger to receive up to $100,000 to cover economic loss.

2.  ADDITIONAL NO-FAULT COVERAGE — Residents of New York are also free to purchase additional No Fault coverage in the event they or members of their families are seriously injured in an accident and their economic losses exceed $50,000.  The two primary types of additional coverage are called Additional Personal Injury Protection (“APIP”) and Optional Basic Economic Loss Coverage (“OBEL”).

What does this mean?  If you or a family member are seriously injured in an accident and your economic loss — again, I am primarily talking about lost wages and medical benefits — exceed the available PIP coverage ($50,000), APIP and OBEL can be triggered to cover your excess expenses.  In addition, as a passenger you may be able to collect against the driver’s APIP and/or OBEL coverage, depending on how the policy is written.

Why is this important? According to the Star Gazette article, at least three of the teens suffered serious injuries and were helicoptered to Strong Memorial Hospital.  A helicopter ride alone generally costs around $2,500, and it is safe to assume the medical bills for these teens could approach $50,000 very quickly.

The passengers first need to determine whether the driver had APIP or OBEL coverage.  If so, it is possible the passengers could be compensated for additional economic loss under the driver’s policy, depending on how it was written.

Next, if the teens’ parents have APIP or OBEL coverage, the teens will likely be considered “Resident Relatives” and will meet the standard to be named an “eligible injured person” under their parents’ polices.  (Important tip — MAKE SURE YOU HAVE APIP AND OBEL NO FAULT COVERAGE.  At Ziff we are willing to review your insurance policy FOR FREE. Just stop in or email us a copy of your policy to info@zifflaw.com.)

3.   LIABILITY COVERAGE– In addition to no-fault coverage, New York State Insurance Law requires all drivers to carry at least $25,000/$50,000  liability coverage.  What does this mean?  It means every driver on the road in New York is required to provide at least $25,000 of coverage to any one injured person for non-economic loss(things like pain and suffering, serious disfigurement and loss of enjoyment of life) because of his negligence.  If more than one person is injured, the total maximum recovery is limited to $50,000 regardless of whether two people are hurt or whether 20 people are hurt.  If there are more than two people hurt, those people would have to split the $50,000 “pie”.

Of course, drivers are permitted to carry — and, in my opinion, SHOULD carry –  much higher liability coverage.  Why is this important?  In an accident such as this — where I am speculating at least eight people sustained serious injuries due to the driver’s negligence — it is possible the maximum amount of liability coverage available to compensate their non-economic losses  is only $50,000, in the event the driver only had a minimum policy.  In other words, unless the driver had enhanced liability coverage, the seriously injured passengers may only have a total pot of $50,000 from which to be compenstated for their non-economic losses.

4.  THE MOST IMPORTANT COVERAGE I HOPE THE PASSENGERS CARRIED– SUPPLEMENTAL UNDERINSURED MOTORIST’S (SUM) COVERAGE– Fortunately, like No Fault, residents may purchase Supplemental Underinsured Motorist Coverage (“SUM”) to avoid the situation described above.  SUM policies of $250,000/$500,000 or $5000,000/$1,000,000 or even higher can be added to almost any insurance policy, and generally cost less than $15.00 PER YEAR.  In my opinion, this is the best money you could spend to make sure you and your family are best protected in the event something really bad happens.

What does this mean?  In the event the driver who caused an accident does not have enough liability protection to fully compensate the people whom he injures, the injured person can trigger his own SUM policy once the full amount of the driver’s policy has been tendered.

Why is this important?  If the Steuben County teens have sustained serious injuries and the driver has a small liability policy, it is likely at least some of the injured teens are not going to be fully compensated for their non-economic losses.   If the teens’ parents have SUM policies, it is possible the teens could meet the “Resident Relative” standard (described above), and trigger their parents’ additional liability coverage.

HOWEVER, New York law is tough in this regard.  In a recent case, the New York Court of appeals held an insured’s SUM policy is NOT triggered unless the amount of the SUM policy is greater greater than the liability policy of the negligent driver, even if the injured party actually collects less than the SUM coverage because of multiple claimants.

Clearly much of this blog post is speculative, but it gets to the heart of some of the most pressing insurance questions.  Bottom line — parents need to protect their families!  Make sure you have adequate No Fault coverage — including APIP and OBEL — and spend the extra dollars each year to buy the biggest SUM policy possible.  Hopefully you will never need it, but if the day comes you will sure be glad you are protected.

I will be following the developing news about this crash and will provide updates as they become available.

Again, bring your insurance policy to Ziff Law at ANY TIME and we will review it for free.  It may be most worthwhile 5 minutes of your entire week!

Thanks for reading,

Christina Bruner Sonsire

Christina Bruner Sonsire, Esq.
NY & PA Injury & Malpractice Lawyer
Ziff Law Firm, LLP
303 William Street
Elmira, New York 14902-1338
csonsire@zifflaw.com
Office: 607.733.8866
Toll-Free: 800.ZIFFLAW (943.3529)
Web: zifflaw.com

Here’s the Elmira Star-Gazette article:

Nine teens packed into car are injured in crash

Nine Steuben County teens packed into a small sedan were injured — six of them seriously — in a one-car accident Wednesday morning in Hornellsville.

County Sheriff Joel Ordway said the car, a 2004 Chevrolet Cavalier, was speeding west on county Route 109 when the driver lost control on a sharp curve about a quarter-mile east of Lain Road and drove into a ditch.

The car continued about 135 feet, struck a concrete culvert, became airborne for 25 feet, overturned and landed on its side in a driveway, deputies said.

Ordway said the crash occurred about 2 miles from the underage drinking party, which was a birthday party. He said alcohol and the car’s speed were factors in the accident.

When emergency responders arrived at the scene, they found nine teens “on top of each other” inside the car, Ordway said.

It was not clear where in the car each of the teens was seated before the crash, though Ordway said they were likely “on top of one another” before the crash. Nobody was riding in the trunk, he said.

Ordway said he knows who was driving, but was not ready to release that information Wednesday afternoon because the investigation is still in progress.

“We’re just going to continue with the investigation,” Ordway said. “In the next couple days, we’ll have some charges, not only on the operator, but also on the source … who provided the alcohol prior to” the crash, he said.

Six of the nine teens in the car suffered serious injuries; one of them suffered a life-threatening head injury, Ordway said.

Emily S. Mayorga and Dylan Henry, both 18 and from Canisteo, and Taylear K. Maiello, 17, of Hornell were taken to Strong Memorial Hospital in Rochester by helicopter. All three were listed in guarded condition Wednesday, according to a hospital spokeswoman. Branden S. Mulhollen, 17, of Canisteo, also was taken to Strong for treatment. His medical status was not available Wednesday.

Bethany Jones, 17, and Carleenea L. President, 18, both of Hornell, were taken to Robert Packer Hospital in Sayre. Both were listed in stable condition Wednesday.

Ordway said the car was traveling between 71 and 78 mph at the time of the crash. The speed limit on the road is 55 mph, though the suggested speed on the downhill curve where the car left the road is lower, about 40 mph, he said.

County Road 109 was closed for several hours Wednesday.

The crash is reminiscent of another serious crash involving underage drinking in western Steuben County in 2007.

That September, three teens and a 21-year-old man were killed when a car hit a concrete abutment and went into Sugar Creek off of state Route 248 near Jasper. Police said all four had been drinking alcohol before that crash.

What the REAL Questions Are:

• What do I do now that my car or truck has been damaged?
• Do I have insurance coverage for the damage?

Here are some tips to help you understand insurance and repair issues for your car or truck.  The information below is talking about coverage in New York but the coverage issues are similar in other states.  If in doubt about your state, talk to a knowledgeable agent or lawyer.

First, Notify Your Insurance Agent/Carrier of Your Damage ASAP

Because most insurance policies require prompt notification of any accident or damage as a requirement for coverage, you should immediately notify your insurance agent of the damage to your vehicle.  Make sure to document the date, time and person who you notified of the damage.  To be extra careful, it is a good idea to confirm your notice either in an e-mail or letter.  Better safe than sorry!

Once you have notified your agent, your experience will be shaped by the type of insurance coverage you purchased to cover any property damage to your vehicle.  Below is a discussion of some of the typical types of coverage:

Collision vs. Comprehensive Coverage

On your own car insurance policy, you can purchase insurance to protect your car from damage.

Collision Coverage protects you from accidents which are deemed your fault.  If you crash into another car, building, tree, etc., Collision coverage will pay to fix it.

Comprehensive Coverage protects you from damage to your car or truck caused by deer or other animal crashes, theft, flood, vandalism, or other events not involving collisions.  If your car is damaged by one of these events, your comprehensive coverage will reimburse you.

If you finance or lease your car, you will likely be required to purchase both Collision and Comprehensive coverage.  It is also a good idea to purchase this coverage if you have a relatively new car which would be expensive to repair or replace.  The cost of Collision or Comprehensive coverage can be reduced by increasing your deductible, which is the amount you have to pay yourself before the insurance company must start paying for damage or loss.

Glass Coverage

This coverage pays for damaged glass to your car and often this coverage has a $0 (zero) deductible.

GAP (Guaranteed Auto Protection) Insurance

If your car or truck is crashed and “totaled” (cannot be repaired for less than its value), then you might end up owing more to your bank or lease company than your insurance will pay you for your car.  Insurance must pay the Actual Cash Value (ACV) of the car, which is often much less than you owe because vehicles depreciate in value quickly.  GAP insurance will make up the difference so that you do not end up upside down on your loan or lease.  If the ACV is $10,000, but you owe $15,000 on your loan or lease, GAP insurance makes up the $5,000 shortfall.

Tips for Cars That Have Been Declared a “Total Loss”

If the insurance company decides that your car will cost more to fix than its ACV, it will be considered a “total loss.”  If the car was totaled because of a collision caused by another driver, you can make an insurance claim against that driver or with your Collision coverage.  Talk to your attorney and insurance agent to decide which would be best for you.

When your car is declared a total loss, consider the following:

• Tell the appraiser about recent repairs and special equipment on the car.  Make sure that all of your car’s options and upgrades have been included in the appraisal and the car’s condition was properly rated.
• Research car values and sales on the Internet.  Do not accept the first offer – negotiate a fair price.
• Insist on a fair number of days in the rental car to allow you to find a new car.

Tips for Fixing Your Wrecked Car

The insurance company may try to steer you to their “approved shop.”  Beware of the potential conflict of interest.  If the shop does substantial work for the insurance company, there may be a motive to cut costs in repairing your car.

You have the right to choose where your car will be repaired.  Get a referral from someone you trust.  Check references and research the shop’s reputation. With that said, I don’t mean to imply that all “approved shops” are necessarily bad. For example, Elm Chevy and Gary’s Body Shop are good examples of reputable dealers who work with State Farm, Allstate, Erie, etc.

Using an approved shop sometimes eliminates the need for an adjustor to come out and see your car, especially with small claims like deer or fender benders.  But YES, the customer can go anywhere they want to fix their car.

Also, be sure to ask what parts will be used in the repair, Manufacturer Parts, After-Market Parts (non-Manufacturer but new), or Used Parts from a junk yard.  Although your insurance policy usually governs what type of parts can be used, you have a right to know what will be used and why.

If the collision was the fault of another driver, you can choose to go through the other driver’s policy or your own Collision coverage to get the car fixed.  Talk to your insurance agent, attorney and body shop about which would be better given your situation.

Rental Car Coverage

Not all policies have rental car coverage, so it is important that you carefully review your policy to see the exact terms of your coverage.

My thanks to Peter Wallin at Wallin Insurance for his input on this post.

I hope this helps you understand the confusing world of car damage coverage.  Feel free to post any questions you may have in the comments below or E-mail me at jreed@zifflaw.com.

Thanks for reading,
Jim
_________________________________________
James B. Reed, Esq.
Personal Injury & Malpractice Attorney
Ziff Law Firm, LLP
303 William St., Elmira, NY 14902
Tel. (607) 733-8866  Fax. (607) 732-6062
Toll Free 1-800-943-3529
mailto:jreed@zifflaw.com http://www.zifflaw.com

E-mail me at FreeReports@zifflaw.com for two free books:
NY Car Accidents and NY Car Insurance Secrets YOU Need to Know.

The answer is YES, unfortunately.

I want to share details about this answer from the official N.Y. Insurance Department website. It’s important for drivers to understand just how the insurance companies justify charging you more and the terminology they use.

Such an increase is known as a surcharge. Surcharges are based on the fact that a driver who has previously been at fault in one or more accidents, or has a record of traffic convictions, has an increased likelihood of being involved in future accidents.

Insurers “classify” drivers according to criteria such as:

• Age
• Location
• Vehicle type and mileage

To further refine those classifications, many insurers use “merit rating plans,” a point system in which increases are applied according to an individual driver’s record (traffic convictions and accidents).

Surcharges are applied to liability (bodily injury and property damage), collision and no-fault (PIP) coverages, and are only allowed for:

• Accidents involving bodily injury, or losses to property in excess of the accident reporting threshold ($1,000), where the insured driver is at fault, or
• Convictions for certain violations which are chargeable under the Insurance Law.

No-one intends to get a traffic ticket or have a car accident. A surcharge may seem almost like a punishment, but it really a way for the insurance company to balance premiums against risk.

A surcharge is used as a tool to properly price the exposure the insurer is writing, NOT as a means to recoup payment made under a claim.

Another important point: The total dollar amount paid as the result of a claim does not affect the surcharge. For example: An insured person being surcharged for a particular accident will pay the same amount regardless if the damages were $10,ooo or $50,000.

Thanks for reading,

Jim

_________________________________________
James B. Reed, Esq.
Personal Injury & Malpractice Attorney
Ziff Law Firm, LLP
303 William St., Elmira, NY 14902
Tel. (607) 733-8866 Fax. (607) 732-6062
Toll Free 1-800-943-3529
mailto:jreed@zifflaw.com www.zifflaw.com

E-mail me at FreeReports@zifflaw.com for two free books:
NY Car Accidents and NY Car Insurance Secrets YOU Need to Know.