A question I am frequently asked is: Can my insurance company raise my premium due to an accident or traffic ticket?

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.

Let me share one cold, hard fact with you. Insurance companies are more interested in making profits than in assisting their customers.

You’re nodding in agreement, I bet. But do you truly realize what that means? Some common standards of business ethics go by the wayside when it comes to insurance companies and claims.

I just read a great blog post, “My First Experience with Adjuster Law‏” by Myrtle Beach trial lawyer David Swanner. He does a fantastic job of describing some of the methods insurance company adusters use to manipulate plaintiff attorneys.

Insurance companies manipulate facts

Swanner writes about the first time he met a Geico “super adjuster” who came to wrap up a bunch of cases all at once. The adjuster didn’t pore over the claimants’ medical records or study their demands. She glanced at the files and came up with one snap reason after another why she didn’t think the cases were valid.

Seeing this happen to five cases in a row, Swanner realized something every personal injury attorney and every accident claimant needs to know: the insurance company will look for any plausible reason to NOT PAY a settlement.

Here are some examples of things adjusters might say about your claim:

• You went to the doctor too quickly. You must be faking an injury.
• You waited too long to see the doctor. You must not have a real injury.
• You’re too young. Your injury will go away.
• You’re too old. Your health problems don’t stem from the accident, but from pre-existing conditions.

It’s kind of like the fairytale about Goldilocks – except insurance adjusters are determined to NEVER declare anything “just right.”

Insurance companies manipulate people

The Ziff Law Firm has a newsletter, “Legal News You Can Use” (sign up to receive your copy here). In the Spring 2008 issue, we featured a story about an insurance company that placed investigators undercover in a church support group to spy on a couple with an accident claim! Unbelievable.

I deal with insurance company BS every day. I know that you have to combat their tactics with the honest facts and the hard work of preparing a strong case. They have adjusters and lawyers on their side – shouldn’t you have an attorney working for your best interests on your side?

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

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As my clients and regular readers know, I STRONGLY urge EVERY car owner to make sure that they have good uninsured and underinsured coverage on their car insurance policy. This coverage, often referred to as UM or SUM coverage, protects YOU if you have the incredibly bad luck to be hit by another driver who has either no insurance or not enough insurance to cover your expenses. For literally pennies a day you can add UM/SUM coverage to your policy and frankly you are crazy if you don’t have this important coverage. You can get my free book explaining this coverage and telling you how to read your insurance policy in detail by clicking here. It’s a real easy read and you will quickly see why I think this coverage is very important.

But a recent blog post by my friend and fellow accident lawyer, Jim Carroll, gave me even more ammunition for my crusade to make sure everyone has good UM/SUM coverage. In his post, Jim quotes from a Wall Street Journal article Road Risks Rise as More Drivers Drop Insurance:

“More drivers are letting their car insurance lapse because of the sour economy, putting themselves and others at risk. “

“The trend is bad news for everybody on the road. If you’re hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage — almost half of states require the added coverage — but this may boost your premium.”

So, the bottom line is that now, more than ever, when people are facing tough financial times and cutting corners on their insurance, means that YOU have to make sure YOU have the right coverage to protect your family.

Thanks for reading,

Jim Reed
NY and PA Accident & Injury Lawyer
jreed@zifflaw.com

The one-car accident described below got me thinking about a question I am often asked:

If I am riding in a car driven by one of my friends and he does something dumb (speeding, driving drunk, driving too fast for conditions) that causes me to get injured, can I bring a claim against my friend?

The short answer is YES. If you have been hurt due to the negligence, carelessness or recklessness of another, you can bring an action against them even though they may be your friend, your relative or even your spouse. That goes too for the driver of a car in which you are riding.

Now this does NOT mean that every car crash results in a valid claim or lawsuit. Both New York and Pennsylvania have rules about when you can and cannot bring a lawsuit. For instance, NY requires that you have suffered a “serious injury” in order to qualify to bring a lawsuit in NY auto accident case and in Pennsylvania your right to bring a lawsuit may be determined by whether you elected the full tort or limite tort option.

But what this DOES mean is that just because you have some relationship with the negligent person, does NOT automatically disqualify you from bringing a claim against them and their insurance company.

I hope this helps clarify this issue.

Thanks for reading,

Jim Reed
New York & Pennsylvania Auto Accident Lawyer
jreed@zifflaw.com

Bradford County Crash Injures Three People

Contributor: Katie Graham, WETM-TV

ATHENS TOWNSHIP-Athens Township police are investigating a one-car accident that sent three people to the hospital Monday night.

It happened on Wilawana Road near the Dandy Mini-mart, near exit 59-A, around ten o’clock Monday night.

Athens Township police say they’re not sure how the accident happened.

Ambulances took three people to Robert Packer Hospital. Their conditions are unknown Tuesday morning.

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Own a car in Pennsylvania? Pay a lot of money every year for insurance coverage? Think your auto insurance policy provides coverage for your funeral expenses should you be killed in an accident? Better think again…..

WETM-TV covered a story (copied below) that is relevant to all of our friends in Pennsylvania– You REALLY need to carefully review your auto insurance to make sure it provides the insurance coverage that you think it does.

Most of us like dealing with our auto insurance about as much as we like getting a tooth pulled but the bottom line is that you are paying a lot of money every year for car insurance so better make darn sure you are getting what you paid for.

Reviewing your insurance policy isn’t nearly as hard as you might think. Most of the important information is contained on 1-2 pages of your policy called the Declaration Sheet– this is the page that tells the types of coverage you have and how much of an insurance premium you are paying for each coverage. Go down through that sheet (preferably with your insurance agent’s help) and make sure you know exactly what each of the coverages pays for. If you are not sure you understand the coverage, don’t be shy about asking your agent to explain it to you. Most good agents are happy to explain the policy and they understand that is part of their job if they want to sell you your insurance. If your agent is unwilling to or gives you a hard time about explaining your policy, then it’s time to go get a new agent…..

You owe it to yourself and your family to make sure your hard-earned money is buying the protection you need.

Good luck!

Jim Reed
Pennsylvania Car Accident Lawyer
jreed@zifflaw.com

Death Benefits Not Mandatory for PA Car Insurance
Reported by: Naveen Dhaliwal
Email: ndhaliwal@wetmtv.com

ATHENS, PA – All of you who own a car and have full insurance coverage assume you’re covered for the worst possible scenario.

When we get into our car and get ready to drive away, you don’t really think if your car insurance covers you if you get into a fatal accident.

The Mullen family in Athens found out the hard way. Missy Mullen’s daughter Stephanie Mullen was killed in a car accident on State Route 4014 in Smithfield Township a month ago.

Missy Mullen says Stephanie’s car insurance policy did not have death benefits.

“I just want people to be more aware of their insurance coverage so maybe they don’t have to go through something like this,” says Mullen.

“Everybody we have talked to has looked into their policies and there were several who found out they didn’t have that coverage so they have changed their policies to cover that,” says Clarissa Galasso.

The $5,000 cost for Stephanie’s funeral was paid for by family and friends. Stephanie was cremated and right now her ashes lay in a box on her bed at home. Her family still needs another $2,500 for the burial.

A benefit this is being held to help the Mullen family with burial costs. It will be this Saturday at the East Smithfield Fire Hall from 4pm to 8pm. If you aren’t able to make and would like to help, you can send donations to Clarissa Galasso P.O. Box 92, East Smithfield, PA, 18817.

In New York State most policies carry death benefits. However, in Pennsylvania only liability and medical is required.