Settlement Options After a Drunk Driver Accident: Property Damage vs. Bodily Injury Claims

When you are involved in an accident caused by a drunk driver, determining the best course of action can be complex. This article explores the nuances between accepting a settlement from the insurance company for property damage and holding the at-fault driver liable for the rest, or taking the full legal route to recover additional damages.

Settling Property Damage Separate from Bodily Injury Claims

It is indeed possible to settle your property damage claim with the other driver's insurance without waiving your right to pursue a bodily injury claim. Most often, it is easier to resolve property damage claims with your own insurance carrier and let them handle the interaction with the other driver's insurance. However, if you are angry at the drunk driver and seek to pursue them directly, it may complicate the situation as the other driver's insurance company will step in to provide legal representation and compensate you up to their liability limits.

Understanding Liability and Insurance Limits

Drunk driving can lead to punitive damages in certain jurisdictions. Although these claims are not easily proven, they are not covered by insurance. Insurance companies are typically driven by the goal of minimizing payouts, and your best interests may not be their priority. Your insurance company might work to settle for as little as possible while convincing you they took care of your property damage claim.

Making an Underinsured Motorist Claim

An Underinsured Motorist (UIM) claim is an option you can explore with your own insurance company, but it is critical to discuss it before signing any release forms. Your insurance company might elect to settle the claim before you reach the policy limits with the other party. They may ask you to sign a promissory note allowing them to pursue the at-fault driver. If you sign a general release, you might preclude them from recovering additional damages through legal means.

Understanding the Complicated Settlement Paperwork

Frequently, the other party's insurance company will attempt to get you to sign a waiver of your right to sue the driver whose insurance they are representing when they pay you the policy limits. This choice is crucial and involves several factors:

Cost of Litigation: Evaluate the cost of going to court versus settling. Difference in Settlement: Examine the potential difference between a settlement from the insurance and a court verdict. Net Gain: Determine if there is a net gain if you win and collect through court. Drunk Driver's Assets: Assess the likelihood of the drugged driver having sufficient assets to pay a judgment.

Combined Single Limit Policies and Combined Share Claims

In cases with combined single limit policies, which are more common for commercial auto policies but are not uncommon for personal auto policies, the bodily injury adjuster oversees the entire claim, including property damage, especially in multi-injury and multi-property incidents to ensure a fair share of the policy limits. For example, if a driver with a 50,000 combined limit policy is involved in an accident where the total claim (bodily injury and property damage) exceeds the policy limits, each claim shares the available policy limits proportionally. This could mean you receive less than the full policy limit for your particular claim.

Conclusion

This situation is complex and full of potential pitfalls. It is essential to seek legal advice. Understanding the nuances of settlement options and the limits of insurance coverage can significantly impact the outcome of your case. By working with an attorney, you can navigate these challenges more effectively and ensure your rights are protected.