Most drivers today understand the protocol involved when and if you are involved in a car accident. After checking yourself and any passengers for injuries after a car accident, the drivers of the involved vehicles should exchange personal and insurance information. But, what happens if the driver that caused your injury or property damage is underinsured or not insured at all? Many Pennsylvania residents, knowingly and unknowingly, have a clause written into their own insurance protecting them from such a situation.
It's what's known as an 'underinsured or uninsured motorist' clause. It's meant to protect PA residents from injuries and damages resulting from a motorist with inadequate insurance to cover the costs. One couple is actually suing their insurance company for failing to negotiate a proper settlement. This suit occurred after they were involved in an accident resulting in injuries with a underinsured driver.
This lawsuit is beneficial for Pottsville residents to be aware of because it shows that insurance companies may not always be accurate in their settlement amounts after a car accident. Essentially, the plaintiffs believe that they are entitled to a larger settlement from their insurance company after they were injured in an underinsured motorist crash. The suit seeks further compensation based on the fact that their insurance policy was meant to protect them from damages resulting from car accidents with underinsured or uninsured motorists.
Whatever the outcome in this case, it proves that your insurance company may not always have your best interests in mind when it decides on an insurance policy settlement. Normally, one wouldn't collect from their own insurance company after being involved in a car accident with another driver. However, underinsured accidents are different because the person insuring you often becomes the compensator. As it can be seen, this can lead to a conflict of interest.
Source: pennrecord.com, "Allstate Insurance accused of improperly failing to negotiate settlement," Louie Torres, January 27, 2017