Tom McCutcheon – Attorney at Law
Q: I had a car accident and my medical bills were over $30,000.00. A lawyer told me that I didn’t have uninsured motorist coverage and all the coverage the other side had was $25,000.00. This person pulled out in front of me and the police report confirms they failed to yield the right of way. I thought the law was that the insurance company had to pay all of my medical bills. Isn’t his insurance company responsible for my medical bills?
Tiffany
Russellville, AL
A: A lot of people are under the misconception that if someone else causes an accident, they have to pay your medical bills. They may be responsible for your medical bills and you may get a judgment against them for that amount or more but you can’t spend a judgment.
If a person elects to buy $25,000.00 worth of coverage and they pay the premium for that coverage, then all their insurance company has to pay is $25,000.00. Insurance coverage isn’t free and the more you pay, the more coverage you get. If all of the insurance coverage the person that caused your accident bought was $25,000.00, then that’s all the insurance company has to pay.
Generally speaking, people that have only $25,000.00 worth of coverage don’t have a house or land or a retirement account with a lot of money in it. If someone buys a minimum limits policy that has a lot of property or money, it’s possible that the agent that sold them a small policy when they are worth a lot of money may have been negligent.
I think that a lot of companies aren’t selling or explaining why uninsured motorist coverage is so crucial. You are on the hook for over $30,000.00 in medical bills through no fault of your own. The hospital can file a lien for almost no cost but you probably can’t prosecute a lawsuit to collect the $25,000.00 and lawyers have to be compensated for their time. That will leave you about $15,000.00. If the hospital gets a judgment, you won’t be able to buy a house or receive an inheritance. Uninsured motorist coverage would not only pay the remaining medical bills but pay you for lost wages and pain and suffering.
Sometimes we are able to negotiate the medical bills down and reach a compromise that pays your bills and puts some money in your pocket. Sometimes the bills are so large, that’s just not possible. Always buy coverage in relative to what you own or expect to own.
Buckle up and drive safely.
McCutcheon & Hamner, P.C.
2210 Helton Drive
Florence, Alabama 35630
Telephone: 256-764-0112
Facsimile: 256-349-2529
