I Have a Question About Insurance Claims and Coverage©

Written by: Mark Wolfe, Attorney at Law. The following information is provided as general advice and without charge. Questions about specific issues or situations should be directed to an experienced motor vehicle accident attorney. NOTE: The following material is protected by all applicable State and Federal Copyright laws. Published May, 2005.

Insurance claims arising from a motor vehicle accident fall into two categories. Direct claims and liability claims. Direct claims are those made against your own auto-insurance carrier for coverage benefits such as collision, rental, towing, medical payments, and uninsured motorist benefits. [In states that have no-fault insurance, claims for PIP (personal injury protection) benefits would be considered a direct claim.] Usually direct claims can be reimbursed as bills are being incurred. The exception to this would be claims for uninsured motorist benefits which are usually paid after the victim has completed treatment for injuries suffered in the motor vehicle accident. Liability claims are those claims that are made against the at-fault driver’s insurance and include property damage and bodily injury claims. Liability claims are usually not settled or resolved until the party receiving benefits (the claimant) is willing to sign a Release agreeing that the claim is over. NOTE: Under Alabama insurance regulations, property damage claims and bodily injury claims arising from a motor vehicle accident are considered two separate claims. This means a person can settle the property damage claim and sign a property damage release even though a bodily injury claim is still pending. Insurance adjusters in Alabama can not condition the settlement of the property damage claim on a settlement of the bodily injury claim. However, just because an insurance company pays a liability claim related to property damage the law does not require them to pay or settle a bodily injury claim arising from the same accident.