Protecting Your Family -- What You Really Need to Know About Your Auto Insurance Policy

Protecting Your Family -- What You Really Need to Know About Your Auto Insurance Policy

It is common knowledge that automobile accidents represent one of the highest ‘risk of injury’ in the lives of most people.  Over the years, my law firm has seen hundreds of East Texans injured in serious automobile accidents.  Sadly, in many of these cases, the person at fault either had little (or no) insurance to cover the injuries caused by the accident.

 By making sure that your auto policy includes a relatively inexpensive ‘add on’ coverage, you can go a long way toward protecting yourself and your family in the event you are involved in a serious accident of this nature.  In fact, for just a few dollars a month (over state required minimum policies) most people can significantly increase their coverage protection.There are basically three types of auto insurance:1)  Liability Insurance  -  Designed to pay others for personal injury and property damage if you cause an accident.  [State required and expensive]2) Collision  -  Designed to pay for your car repairs.  [This coverage can be moderately expensive.]3) Personal insurance designed to protect you, your family, and your passengers in an accident.  This coverage is relatively inexpensive and is by far the most important coverage to protect your family.  Unfortunately, most people never get a full explanation of the real value of this relatively cheap insurance from their agents.There are also three types of auto insurance in this third category.  They are Underinsured/Uninsured motorists coverage [UIM], Personal Injury Protection [PIP], and Medical Benefits Coverage [Med-Pay].Perhaps the most important of these is Uninsured/Underinsured motorist coverage.  UIM covers you, your family, and any other person riding in your vehicle if the at fault driver doesn’t have insurance (or enough insurance) to cover all the damages.  I explain to my clients that purchasing UIM coverage is like buying a liability policy on every single person in the world just in case they crash into your car (or family).  In other words, your liability policy protects other people if you cause an accident.  That’s good. However, for just a few dollars a month, a UIM policy also protects you, your family, and every passenger in your vehicle if the other driver caused the accident.Another piece of critical advice I give my clients is to be sure to get price quotes on a range of different coverage levels.  Unless you ask, many agents will only quote a minimum level policy (perhaps hoping to win your business with the cheapest bid).   However, you can probably get ten times the protection [$250,000.00 in coverage] for just a little more money.  For example, my premium for a six month auto policy with USAA is $463.15 and provides coverage at $300,000/$500,000/$50,000.   Out of the total six month premium, $78.07 is for liability property coverage (i.e. $50,000 to pay for the other person’s car if the accident is my fault).  At the same time, I pay only $38.31 every six months for $500,000.00 in UIM coverage protecting every person in my car if we are hit by an uninsured/underinsured driver.  That is a mere $6.38 per month for a half million dollars in UIM coverage!Insurance companies are able to sell these much larger policies for only slightly higher premiums because serious injuries are statistically rare.  On the other hand, it is in the case of a rare, but serious, accident when most individuals and/or families need protection.  With the high costs of today’s medical bills, adding Uninsured/Underinsured motorists coverage [UIM] to your auto policy makes a lot of sense.  Once your agent has provided prices for a range of different coverage amounts, then you can chose the level of coverage that protects your family and meets your budget.As a service to the community, our office offers a free review of your insurance policy.  Anyone who would like more information can call (936) 632-2000 to schedule a free appointment.  Additional answers to common questions [like why you should always buy PIP instead of MedPay] can be found on our website at www.texaslawoffice.com.Mike Love

Why Insurance Companies refuse to pay your medical bills

Probably the biggest reason most people decide to call a lawyer after being in an accident is the fact that the insurance company for the driver that caused the accident ALWAYS refuses to pay any medical bills or lost wages unless you are willing to settle the entire claim.

Obviously, this puts the injured person in an impossible situation. How can you possibly settle your claim when you don't even know how bad you're hurt, how long you will be off work, if you will need surgery, or how much it will cost? One of the most common questions we get from people who start off trying to handle a claim on their own is "Why does the insurance company refuse to pay my medical bills?" Especially when they know it was their driver's fault. The answer is sad ..... but simple.The insurance company knows that if you can not afford to go to the doctor, you will not be able to prove you were hurt in the accident and they will not have to pay you anything. Likewise, if they help you and your family by paying your lost wages while your off work, you are much more likely to be able to afford medical treatment. Again, the insurance company knows that if you have medical treatment, you can prove you are hurt, which means they will have to pay more money. They know that if you can not afford medical treatment ... or the light bill, then you will accept pennies on the dollar for your claim out of desperation.An experienced lawyer can almost always predict what an insurance company will do. Its really simple actually. The insurance company will always do whatever saves them the most money. Unfortunately, with the insurance company, fairness is seldom the deciding factor.So now that you know the bad news ... what do you do about it if you have been hurt in an accident that was someone else's fault? First, understand that the other drivers' insurance company is not your friend. The adjuster's goal is to 1) try and avoid paying anything, and 2) if they have to pay … to pay as little as possible, and 3) delay, delay, delay. Remember, the big insurance companies collect premiums in the billions and cover losses in the hundreds of millions (if not billions). The interest on that kind of money is phenomenal. Every day they can make you wait is more money for them.So, if you are hurt, do not wait on the other side's insurance company. Go to the doctor as soon as possible. KEEP GOING TO THE DOCTOR for as long as you still have problems. Each time you go back to the doctor, tell him or her exactly what symptoms you are having.  My advice to all of my clients about the best question to ask your doctor is this: "What next?" In other words, if you are still in pain, or still having problems, still can't get back to work after a couple of weeks, you need to be telling the doctor: "This isn't getting any better" and "What is our next step in treatment?".  "What are my options, or tests to determine what is wrong?" and, "Is there a specialist that I need to see for this condition?"STRONG WARNING HERE ..... Referrals to specialists are critical if you are suffering from an ongoing injury. However, if you are to this point on your own and have still not consulted an attorney, seriously consider calling someone now. The reason I say this is related to what I mentioned above, insurance companies look to medical documentation to establish whether you are hurt or not (really more of whether you can prove you are hurt or not).  Here's the problem, there are many qualified specialist out there.  Doctors normally work on what's called a reciprocal referral basis. In other words, Dr. Smith refers all his hurt back patients to the Dr. that sends him OBGyn patients.Here's the problem with that arrangement. Defense attorneys and insurance companies have 'hired gun' specialists in every area that they use as 'expert witnesses' in their big cases.  In every town of 40,000 people or larger, there will be at least one or two neurologists, and orthopedic surgeons that are c0mmonly used by defense lawyers and insurance companies to 'review medical records' and say the patient is not really hurt, or more commonly, not hurt when their drunk driver ran the red light and broad sided your car.The last thing you need when you have been in an accident, is to have your well-meaning family doctor refer you to the insurance companies hired gun!! Unfortunately, unless you are a trial lawyer who knows the doctors in your area, you have no way of knowing who to avoid. If you have been seriously injured and are at the stage where it is time to start seeing specialists, I would strongly urge you to talk to an experienced attorney that is familiar with the doctors you need to avoid.For answers on how an attorney can help you get medical treatment if you don't have health insurance, see my post titled "How your attorney can help you get medical treatment."Our firm represents injured people all over the state of Texas and partners with top law firms across the country. If you are located outside the state of Texas and need a referral to a top P.I. law firm in your area, we can gladly help you find someone close to you.

McDonalds' scalding coffee case

There is a lot of hype about the McDonalds' scalding coffee case.  No one is in favor of frivolous cases of outlandish results; however, it is important to understand some points that were not reported in most of the stories about the case.  McDonalds coffee was not only hot, it was scalding -- capable of almost instantaneous destruction of skin, flesh and muscle.  Here's the whole story.Stella Liebeck of Albuquerque, New Mexico, was in the passenger seat of her grandson's car when she was severely burned by McDonalds' coffee in February 1992.  Liebeck, 79 at the time, ordered coffee that was served in a styrofoam cup at the drivethrough window of a local McDonalds.After receiving the order, the grandson pulled his car forward and stopped momentarily so that Liebeck could add cream and sugar to her coffee. (Critics of civil justice, who have pounced on this case, often charge that Liebeck was driving the car or that the vehicle was in motion when she spilled the coffee; neither is true.)  Liebeck placed the cup between her knees and attempted to remove the plastic lid from the cup. As she removed the lid, the entire contents of the cup spilled into her lap.The sweatpants Liebeck was wearing absorbed the coffee and held it next to her skin.  A vascular surgeon determined that Liebeck suffered full thickness burns (or third-degree burns) over 6 percent of her body, including her inner thighs, perineum, buttocks, and genital and groin areas.  She was hospitalized for eight days, during which time she underwent skin grafting. Liebeck, who also underwent debridement treatments, sought to settle her claim for $20,000, but McDonalds refused.During discovery, McDonalds produced documents showing more than 700 claims by people who suffered severe burns from its coffee between 1982 and 1992. Some claims involved third-degree burns substantially similar to Liebecks. This history documented McDonalds' knowledge about the extent and nature of the burn hazard to its customers from serving coffee at 185 degrees as opposed to the industry standard of 135-145.In its pre-trial discovery responses, McDonalds’ claimed that, based on a consultant’s advice, it stored its coffee at between 180 and 190 degrees fahrenheit to “maintain optimum taste.”  (McDonald’s actually used special holding pots which held the coffee under pressure to prevent it from evaporating off at the near boiling temperature.)  At trial, McDonald’s corporate representative admitted that he had not evaluated the safety ramifications of serving coffee at this temperature.  Additionally, there was conflicting evidence that suggested the real reason McDonald’s brewed and stored coffee at such high tempature was to increase profits because the company was able to brew the same strength product using less coffee grounds using the higher tempatures.  Other establishments sell coffee at substantially lower temperatures, and home coffee makers generally produce coffee at 135 to 140 degrees.On cross examination, McDonald’s Corporate Representative also admitted:

• A burn hazard exists with any food substance served at 140 degrees or above,
• McDonalds coffee, at the temperature at which it was served to customers was unfit for human consumption because it would burn the mouth and throat, and
• Despite the fact that burns would occur 100% of the time for any person who actually drank the coffee at the temperature served, McDonalds had no intention of reducing the "holding temperature" of its coffee.

The Plaintiffs' expert, a scholar in thermodynamics applied to human skin burns, testified that liquids, at 180 degrees, will cause a full thickness burn to human skin in two to seven seconds.  Other testimony showed that as the temperature decreases toward 155 degrees, the extent of the burn relative to that temperature decreases exponentially.  Thus, if Ms. Liebeck's spill had involved coffee at 155 degrees, the liquid would have cooled and given her time to avoid a serious burn.At trial, McDonalds defended it’s extremely high temperature coffee by claiming that customers buy coffee on their way to work or home, intending to consume it there. However, the company’s own research showed that customers intend to consume the coffee immediately while driving.McDonalds also argued that consumers know coffee is hot and that its customers want it that way.  However, the company admitted its customers were unaware of the increased tempature of McDonald’s coffee or that they could suffer third degree burns.  The company also admitted that a statement on the side of the cup was not a "warning" but a"reminder" since the location of the writing would not warn customers of the actual tempature of the coffee or increased burn hazard.How Much Money the Jury Really Awarded & How Much Ms. Liebeck          Actually ReceivedThe jury awarded Ms. Liebeck $200,000 in actual damages.  [Think 8 days in the hospital and 3 skin graft surgeries to repair 3^rd degree burns of the inner thighs, genitals, and buttocks.]  The award was reduced to $160,000 because the jury found Liebeck 20 percent at fault in causing the spill.Punitive DamagesThe jury found McDonald’s grossly negligent because of its actual knowledge of the extreme risk of burns caused by the excessively hot coffee and failure to lower the temperature.  [Remember the 700 prior burn claims that McDonald’s lost at trial or paid settlement money to the victims without changing the coffee temperature.]  The plaintiff’s lawyer argued that McDonald’s had proven 700 times before Ms. Liebeck was burned that it would not going to change a thing unless someone made them.  The Plaintiff’s attorney therefore asked the jury to take away one week’s worth of profit that McDonald’s made on coffee.   The jury awarded Liebeck $2.7 million in punitive damages [about two days of McDonalds' coffee sales].However, the trial judge reduced the jury’s punitive damages award to $480,000 (equal to three times the actual damages)  The trial judge reduced the punitive damage award based on prior appeals court rulings despite the fact that he specifically found McDonalds' conduct “Reckless, Callous and Willful.”Did the Jury System Work?Post-verdict investigation found that, after the case was over, the temperature of coffee at the local Albuquerque McDonalds dropped to 158 degrees Fahrenheit.How Much of the Jury Award did Ms. Liebeck Eventually Collect?No one will ever know the final ending to this case.  The parties eventually entered into a confidential settlement.  All the public knows is that the parties settled the case somewhere between $0 and $640,000.00As Paul Harvey would say: Now you know the ‘Rest of the Story.’

Parking Garage Collapse Injures Two Workers

A partially built parking garage collapsed in February at University Hospital in San Antonio, injuring two construction workers, one critically.  Occupational Safety and Health Administration (OSHA) is conducting an investigation on the collapse.  Emergency air horns alerted 120 other workers, who fled from the collapsing structure, according to MySanAntonio.com. The garage was being erected near the intersection of Medical Drive and Wurzbach Road at the time of the construction accident.Zachry Vaughn Layten is the company overlooking the construction project, which is part of a $900 million expansion at University Hospital.“The garage project is shut down until we have completed an independent analysis of what happened—and can be assured that it won’t happen again,” said Mike Webb, vice president of facilities development and project management for the University Health System.Observers of the construction accident reported hearing two loud crashes.  Jeff Johnson, Project Executive for Zachry Vaughn Layten, says that 12 to 15 concrete columns collapsed in the construction site accident.  They apparently crushed downward, and then caused the garage to collapse onto it, which would explain why witnesses heard two crashes.  The columns were approximately 6 to 7 stories high.One board member from the University Health System asked Webb if he thought they were pushing too fast on the expansion project, trying to get it done on time.“We’re moving as fast as we can, as safely as we can,” Webb replied.Officials will not have a clear answer as to the cause of the construction accident until some of the debris is able to be cleared.“When today’s failure occurred, Development Services Department immediately dispatched its building inspections supervisor to the site in order to determine the cause of the failure,” said T.C. Broadnax, San Antonio Assistant City Manager. “DSD has indicated that a failure of this nature is either a failure in structural design or it is a failure in the construction process.  At present, they do not know if it was a design or construction failure.”“There is no one person who knows what caused this,” Webb continued. “That is why we’re bringing out the forensic engineers.  We don’t want to speculate and put things out there that may be rumors.”

New Bill Will Hurt Victims of Drunk Drivers

Friends,The title to this post could not be more serious.  At a time when our state legislature should be working to address our state budget crisis, they are instead preparing to pass a new law that gives millions (potentially billions) to insurance companies by stripping away the rights of individuals and small businesses to bring a lawsuit when they have been injured or had an insurance claim wrongfully denied. Under this law, HB274, the victims of drunk drivers could have to pay the attorney’s fees of the drunk – even if the victim WINS at trial!Please forward this blog post to your contact list.  Post this on your Facebook pages.I am not making this up.  They are calling the bill “Loser Pays”, but that name is a sham.  The law is worded to guarantee that the insurance company wins no matter what.In a nutshell, here is how the law works: 1.‘Loser Pays’ means that who ever ‘loses’ a lawsuit pays the other guy’s attorney’s fees and costs.  (right now each side pays their own)2.However, ‘Loser Pays’ is not automatic.  Under the proposed law, only the insurance company gets decide if ‘Loser Pay’ applies.3.Even Worse, ‘Loser’ does not mean what you think it means under this law.  Assume a drunk driver runs over you and your child.  Assume that your damages are $150,000 in medical bills and lost wages but the insurance company only offers $100,000.  You decide to go to trial.  Unfortunately, the insurance defense attorney is really good and he convinces the jury the accident was partially your fault (for not ‘watching out’ for the drunk as much as you should have) and he also convinces the jury not to give you all of your lost wages because ‘you should have gone back to work sooner’ instead of taking care of your injured child at home.  Still, even with all that, you win and the jury awards you $79,000.00.  YOU JUST LOST UNDER THIS NEW LAW! 4.Because you only won 79% of the insurance company’s settlement offer, HB274 says you LOST, and YOU HAVE TO PAY THE INSURANCE COMPANIES ATTORNEY’S FEES, TRAVEL EXPENSES, EXPERT WITNESS FEES, AND COURT COSTS. 5.Since the insurance company will only hire the best, high priced lawyers, that bill could easily be six figures.  Now you owe the drunk driver $21,000Finally6.Under this law, if the plaintiff wins big (i.e. more than what the insurance company offered to settle for) the insurance company still gets a free pass because the law also says that when awarding the attorneys fees to the winner, the court can not consider a contingency fee contract as evidence of attorney’s fees.  Only big business and insurance companies can afford to hire an attorney by the hour.  The only way an individual or small business can afford to hire an attorney is through a contingency fee contract. In Summary:A.If the injured person (or small business) loses, he/it will have to pay the insurance company’s attorneys fees, expert witnesses, court costs etc. B.If the injured person (or small business) wins, but does not win more than 80% of the settlement offer, he/it will still have to pay the insurance company’s attorney’s fees, etc. (which could be more than he was awarded by the jury on his claim).  I.e. the victim wins but still loses,C.If the injured person (or small business) wins more than 80% of the insurance company’s settlement offer he is the ‘prevailing party.’ However, because HB274 will not let a ‘contingency fee’ contract be considered as evidence of attorneys fees, the insurance company never has to pay the victims attorneys fees even when the defense loses.This is a call to action.  We can not allow special interests to pull off this kind of power grab that profits off the backs of regular folks.  Please take five minutes to call your state senator now! Let him or her know you are opposed to this law because it strips rights away from individuals, families, and small businesses, and gives all the power and advantages to big business and insurance companies.  They have enough power.  The insurance lobbyists have already RACED this law through the state house of representatives.  It has already passed the house. The Senate will take up debate on the bill this Monday, May 16, 2011.  Please call your state Senator now.  If you live in the Lufkin, Nacogdoches, or Jacksonville area, your Senator is Robert Nichols.  His contact numbers are:Senate District 3--Senator Robert NicholsCapitol Phone: (512) 463-0103Capitol Address: P.O. Box 12068, Capitol StationAustin, TX 78711District Address: 329 Neches StreetJacksonville TX 75766Phone: (903) 589-3003Senator Nichols’ fax number is 800-959-8633If you do not know who your state senator is, here is a link that lists every Texas State Senator and his or her contact information.http://www.fyi.legis.state.tx.us/district.aspx?DistType=SENATE&AllDistrict=on If you do not know your Representative, you can find him or her by typing in your address on this website. http://www.house.state.tx.us/members/find-your-representative/If you want more information, please feel free to call me directly.  I am also attaching a copy of the letter that I sent to Representative James White explaining exactly how dangerous and unfair this law is and asking him to reconsider his support of HB274. Sincerely, Mike Love***************************************************************Letter to Texas State Representative James WhiteMay 13, 2011Honorable James WhiteRoom E2.720, Texas State Capital                         Via Facsimile: (512) 463-9059P.O. Box 2910Austin, Texas 78768 Regarding: HB 274 Dear Representative White:  I am writing because I believe you have been seriously misled into supporting a very bad bill in HB274.  I cannot believe that you would support such a bill if you truly understood how bad it really is. Please, read this short letter.  I will explain the hidden ways this bill attacks the fundamental rights of those you represent. The “Loser Pay” label on this bill is a sham.  Choosing the ‘Loser Pay’ option can only be instituted by the defense.  Anytime the defense has a decent chance to win on liability, or made even a partial settlement offer, the insurance company can make the ‘loser pay’ election to put pressure on an injured victim or small business (car wreck victim making a claim for medical bills, or business owner making a flood, or storm claim). However, if the insurance company wants to delay, raise frivolous defenses, or give low ball offers on serious cases, the injured person or small business is denied the same basic right to make a ‘Loser Pay’ election.  It is fundamentally unfair to give one side this weapon and deny the same rights to the other.             HB274 gives this powerful weapon to multi-billion dollar insurance companies like AIG, Allstate, and State Farm but denies these same rights to working families, children, and victims of drunk drivers.  This is indefensible. Even If the Injured Person or Small Business Wins, They Can Still Lose: Under the current version of the bill, if the injured person or small business making  a claim wins at trial but does not win more than 80% of the insurance company’s pre-trial settlement offer, the victim can be ordered to pay the insurance company’s high priced lawyers, expert witness fees, and court costs.  This means that if a person with a valid claim fails to win enough at trial, they can actually end up with a judgment against them to pay for the insurance companies’ lawyers and experts. Exposing the Shell Game: Under HB274 the Insurance Company Never Pays the Victim’s Attorneys Fees, Even When the Defense Loses.  This law not only denies injured victims the same right to elect ‘Loser Pays’ as defendants, it is rigged to make it impossible for the victim to ever recover attorney’s fees, even when the defense (insurance company) loses.  Promoting HB274 as ‘Loser Pays’ perpetrates an unwarranted deception against the citizens of Texas.  HB274 is not ‘Loser Pays’.  Under HB274, if the plaintiff loses, plaintiff pays.  If the plaintiff wins, but not enough, plaintiff pays.  But, if the defendant loses, nothing happens. Here is how HB274 perpetrates the final deception.  Section 38.016(a) of the law states “the prevailing party may recover the prevailing party’s litigation costs”.  However, section 38.016(d) states that attorney contingency fee agreements “may not be considered in the determination of the amount of reasonable and necessary attorneys fees.”  Only insurance companies and big business can afford to hire an attorney by the hour.  Accident victims and small businesses are forced to hire an attorney on a ‘contingency fee’ contract.  Therefore, big business and insurance companies can recover their attorneys fees but individuals and small businesses are denied the same right even if they win. Unless they are independently wealthy, every seriously injured accident victim, and every small business mistreated by an insurance company is dependant on an attorney who is willing to believe in them.  They are dependant on an attorney who cares enough to take their case and work (sometimes for years) without any money down, advancing all expenses with only the guarantee of ever being paid being that attorney’s confidence in the truthfulness of his client, and the legitimate nature of the claim.  The only time that the attorneys for both sides are paid by the hour is when one big business is suing another. Because virtually every injured person (or small business making a claim) is represented by an attorney with a contingency fee contract, HB274 denies these victims equal treatment under the law. This law stacks the deck in favor of big business and insurance companies and against individuals, families, victims, and small business.  HB274 goes beyond political gamesmanship.  It goes beyond favoritism and acceptable political payback to special interests.  This law attacks the fundamental principals and convictions that this country, and this state were founded upon.  That is: that every person, regardless of race, religion, creed, or status is entitled to equal treatment under the law.  I challenge any supporter of HB274 to identify just one example in history where unequal treatment of one class of persons against another has ever been found to be justified. I have only attempted to explain the most serious problems with HB274.  There are many other problems with every other aspect of the proposed law.  Other sections of the proposed law will: significantly increase the cost of litigation for all parties (plaintiffs and defendants), create a conflict of interest between clients and their attorneys (both plaintiffs and defendants) create significant delays in the court system and deny justice to many Texas citizens with valid claims. For these reasons, I respectfully urge you to reconsider your support of HB274.  I would be very interested to speak with you directly about this very serious issue and to talk personally about the concerns I have outlined above as well as other problems caused by HB274.  Of course, I would likewise be very interested in your thoughts on this matter.  You may contact me anytime day or night.  Office (936) 632-2000, email mikelove@texaslawoffice.com. Respectfully,Mike LoveAttorney at Law