What Are Some Auto Insurance Problems in Getting Paid Post Accident?


Michael Ehline at the court
The United States Supreme Court.

California has a law requiring minimum liability insurance to drive here. But many loopholes and shortfalls could leave you broke and disabled and with no insurance to pay for it. Remember that people with nothing to lose flock to Cali.

Sanctuary cities can harbor foreign rapists and felons. And many undocumented drivers are uninsured and on the highways. It could be they have little to lose. But the fact is, the government encourages scofflaws to drive our roads.

Because of this, we will discuss how to protect yourself. And this remains vital to guard against uninsured and under-insured drivers. For a little extra coin, you can get coverage for darting objects, to a hit and run.


PROOF Of Minimum Liability Insurance Is The Law.

It's the law that you carry proof of insurance if you drive. You must have a bond or a minimum of 15/30/5 insurance coverage. Otherwise, you can't get a Driver's License for a non-commercial passenger vehicle.

On California's roads, every day, even some licensed drivers may have no valid insurance. Many people ask how that could be. After all, the law says they must have coverage. Don't criminals obey the law like everyone else?


There Are Many Undocumented Aliens And Others With No Car Insurance.

An illegal alien is someone who entered the country without permission, who is not a citizen. It could also be someone overstaying a Visa who came legally. It used to be these people were deported and sent home.

Progressives like to say no one is "illegal" and that we are all people. The right says every other country has borders and laws, and so should we. Taxpayers and vehicle drivers ultimately pay a terrible price for our broken immigration policies.

At some point, politicians gave illegal aliens Driver's Licenses. And the rationale was that it would assure proper insurance. After all, you cannot get insurance with no valid license to operate a vehicle.

Car Insurance Is Expensive to Many Who Just Need a Car.

So, the story goes, that makes us all safer. Also, to register a car, you need insurance proof. So you can't finance a car or register one without proof of insurance. But car insurance is expensive. Many people are here illegally. If not, they live under the radar. Or these are folks who cannot afford auto insurance.

They could barely afford to buy a car. In any event, they just need to get around in a car. The bottom line is that legal criminals and illegal criminals are evading our insurance laws. Or down and out folks simply can't afford more than the minimum. The problem is made worse by allowing illegals into the country. But it will probably never completely go away.

The 3 Day Recision Period Allows People to Register a Car, Get Coverage and Cancel.

The truth is, lawbreakers, buy auto insurance, and cancel once they have insurance documents. You heard right; people will cancel their newly purchased policies. And they will do so within the three-day right of rescission period. You see, they now have PROOF of insurance.

And to get insurance, you need to show the insurance agent proof you have a driver's license. Then you go to the DMV and register your car or get a license.

The Purchase and Cancellation Game Is Common Place.

It is a consumer's right to cancel certain items within three days of purchase. And you don't need all three days to get a car registered. So it is a cat and mouse game. People buy the policy, get the official documents, and cancel the policy. Simple as that.

How do I know this? Simple, I used to sell auto insurance. I remember the SR 22 drivers and illegals using bogus identities buying insurance. Now it's even easier for them. They can get a real driver's license. But again, they need to carry proof of insurance and registration.

Drifters Drift Away.

So, in this case, the other driver shows proof and ID at the accident scene. That is the law. Now you will call the adjuster for his insurer. Guess what; they say the policy was canceled. You are out of luck. And you will probably never hear from the other driver again.

They will disappear. Mostly their info was false. The phone number was for someone else. And even the address was to some vacant lot. So you see, this is what injury attorneys deal with on a day to day basis.

And even if you could locate them to sue, why would you want to? Most of all, these are people gaming the system and living off the grid. So it makes sense they would not have assets to satisfy a judgment.

Illegal Drivers and the 3 Day Cancellation Period Loophole.

As discussed, people need to get cars registered to get plates and tags. If not, they will get pulled over. Once their vehicles get registered, they cancel the policy in the three days. But now they had a car with tags, and "proof of insurance." See how easy that was?

A licensed, uninsured person is now rolling down the I-10 freeway. There are, in fact, thousands of licensed commuters on the roads daily. Many have no vehicle insurance at all. But even if they do have it, minimum coverage means that many cars are technically under-insured.

Even With Coverage, an Underinsured Problem Arises.

  • Example - Volkswagon With Basic Coverage Hits a Roll's Royce.

An example would be a Volkswagen Beatle T-boning a Rolls Royce at an intersection. $5,000 in property damage coverages is not enough to pay for the body damage and diminished value of the once Cherry Rolls. The Rolls probably purchased its own UM/UIM coverage for accidents, as imagined above.

Hit and Run and Drivers with No Coverage Problem.

A massive problem with many uninsured drivers is that even if it's not their fault, they may be more likely to leave the scene of the accident. It is also more likely they have no health insurance. Probably no med-pay coverages exist either. Let alone are they able to pay for medical treatment or car repair.

This may leave you in compliance with a bad taste in your mouth. You are probably the few Republicans left in the State. You're the ones feeling and thinking that we who play by the rules are helpless.

Fortunately, this is not always true. With the right assistance, you can get justice. So the first thing you responsible folks must do is get more coverage than you need.

Below I will show you how for a few more bucks a month, you can cover yourself. Now you have less to worry about when in a UM/UIM situation.

What Insurance Should You Should Buy?

At a minimum, beyond basic coverages, buy:

  • Comprehensive. ("Comp").
  • Collision Coverage. (Read More here.)

Unlike the property damage ("PD") coverages all drivers must carry to cover minimum damages to the other person's car, collision coverages are additional insurance that you pay extra for, to deal with your vehicle's repair or replacement costs.

Typical examples of events covered are if your car crashes into an object or another vehicle. Or a scenario if it rolled over. This coverage is designed to fix up or replace your ride after a bad wreck. Whether a simple fender bender or a bad wreck, it covers you for an uninsured person. Even if it's your fault, you paid coverage for this.

Others Deep Pockets?

When you fail to buy additional coverage from your insurance broker, you can get a smart lawyer to seek out the defendant's assets. This expert will "DOE in" other potential defendants. This means when others are found to be at fault, they can become added to the pleading. And hence, they are "DOE'd In." Making sense so far?

These others can be employers, and even the city, state, or federal governments. Often they are the agencies responsible for maintaining a dangerous condition. So imagine a pothole on a public roadway, for example.

Or imagine a failure to install or maintain a guard rail at a blind corner? There is always more than one way to skin a cat. If hit by a UM or UIM driver, it does not mean you have lost yet. A lawyer can try to find deep pockets. And significant injuries will mandate a settlement to pay all the damages.

A good lawyer will be able to argue a supervening, intervening event interfered. So that is what caused, created, added to the injuries. What if you were forced to take evasive action? Perhaps you had to avoid hitting an unattended child? Maybe that child had wandered beyond the gates of his mansion? So now the little tike crawled into the central coast highway?

That may be a claim against wealthy parents for negligence. Even when you don't have an ace in the hole, a crafty lawyer will always find a way to put his client in a position of strength. At least in negotiations and outcomes, there are multiple parties to pay.

How Driverless Vehicles Will Change the Auto Insurance Game?

Health Insurance Costs Benefits Plan Medical Injury Concept
Health Insurance Costs Benefits Plan Medical Injury Concept

During the past couple of years, there has been lots of talk about self-driving vehicles. And this year, the conversation became more substantial when on July 13, 2015, Google showed the prototype of its self-driving car in Silicon Valley City at the Community School of Music and Fine Arts in Mountain View. The location is about 40 miles southeast of San Francisco. And it gave attendants at the event a close up of the vehicle.

The prototype does not contain either a steering wheel or pedals like a conventional car. The vehicle is designed to drive without a dedicated driver behind the wheel.

Beginning in June, Google has been testing the prototypes on the road near its headquarters in Silicon Valley. And not only does the Internet giant have an interest in this type of technology, but some traditional auto manufacturers have begun introducing vehicles that are partially automated.

Both Mercedes and Toyota have introduced vehicles that have braking and parking assistance. Also, they have plans to take the automation further in the coming years. Google is not the only tech company to have an interest in autonomous vehicles. In fact, Alibaba and Baidu have also been interested. And they believe they can have a fully operational self-driving vehicle ready in five years.


The Question Remains "What About Auto Insurance?"

Autonomous vehicles have self-driving technology. So this could mean a change on the roadways by making traffic efficient and less room for error. After all, there is no place for issues like driver distraction or driver error. Also, this could change the whole transportation issue, including possible car ownership due to alternatives.

According to an article in the Yale Journal of Law & Technology, it discusses the 200 billion dollars a year automobile insurance industry. And it relates how this type of technology with autonomous vehicles could make having private auto insurance unnecessary in the future. Yale Law School Student Jack Boeglin, who authored the article, surmised that private insurance would not be needed. Because of this, liability transfers to the manufacturers.

Using this theory, he goes on to say drivers who want to keep their driving privileges would be required to pay. Also, if an accident occurred using collected data from the vehicle's computer, it could be used to determine the percentage of the driver's fault, assigning liability.

What Are The Major Liability Issues?

On the other hand, drivers who relinquish their driving privileges to the vehicle's automation would not have liability issues and would not need insurance. Also, this could save drivers thousands of dollars in insurance premiums. But the question would be, is this enough motivation for the public to change to self-driving vehicles?

Ehline Law Firm finds the advances in technology in this area exciting. But we wonder if self-driving cars when the time comes will stop accidents from happening. As with anything computerized, issues can occur. And what happens when there are both types of vehicles on the roads? To learn more about motor vehicle accidents and liability, visit our pages.


Protection Against Insurance Scam Fraud.

Stop Consumer Fraud
catch consumer fraud, arrest and sue big corporation execs with police investigation or neighborhood watch online internet thief

We wanted to discuss something that hurts all of us here at our injury attorney portal site. Every person ends up having to pay one way or another when they become victimized by car insurance fraud. So they will be responsible for paying higher insurance premiums. Expensive false claims mean higher premiums for all of us.

In many situations, the victim and members of their family involved in an accident wind up paying with their very lives. To prevent insurance scam targeting, it remains essential to becoming educated on fraud protection.

Insurance fraud followed private insurance. Astoundingly, recorded incidents go back to ancient Greece. For example, ships purposefully sunk. And that scam was called "scuttling." Then insurance fraud made its way to England and onto America.

How Long Has Insurance Fraud Existed?

So, just as prostitution came along soon after sex, insurance fraud is no different. An entirely new arena opened up for insurance fraud claims as soon as the automobile was introduced. With the high tech technology that is commonly used today, there are organized and highly sophisticated crime rings that file numerous fraudulent claims for car accidents, and they are not very easy to detect.

However, this does not have to leave you exposed as a target for an insurance scam. There are steps against fraud that can be taken to gain protection and awareness.  And these steps help you avoid becoming a targeted victim of individuals and organized crime rings alike. First, you must understand the common insurance scams.

There are quite a few different types. Accidents that are 'set-up' can range from a driver acting like they want to offer help. But instead, they only have the intention of causing an accident that appears to be the fault of the innocent driver. They do this to vehicles by intentionally stopping directly in front of an innocent driver to cause a rear-end accident.

Should I Trust My Doctor or My Lawyer?

Even attorneys and physicians become involved in these scams. You can't trust anyone. The best way to make sure you do not become a victim of insurance scam fraud is to gain information. You need to understand fraud protection. So that way you can avoid car insurance accident scams.

Below are some of the most common scams that you will want to stay aware of:

  • Fake Helpers – Waving unsuspecting drivers into deadly traffic is their job. Next, their companion intentionally crashes right into your vehicle. But evildoers will deny the other driver got waved into the danger zone. Scams abound. For example, they help you locate a physician, auto repair shop, or attorney. In situations like this, everyone involved is aware and in on the scam. The physician and attorney will be deceptive too. That way, they get to collect more money from your insurance provider. Afterward, the body shop will end up charging ridiculous rates as well.
  • Additional Damage – Staged wrecks are more and more common. For example, a scam driver will drive to a different location and deliberately cause a significant amount of damage to their automobile. But the first accident is where all the injury occurred.
  • Rear-End Car Accidents that are Staged – When a car behind you hits your rear end, you have been rear-ended. But when its someone who forces you to slam on your brakes, you rear-end into the scam driver. So now, they can then collect large amounts of money for their vehicle damages. Next, they will gather even more money for staged medical injuries.

Semper Paratus?

The age-old Latin motto of the US Coast Guard says it best. "Always Prepared." It is vital to remain prepared. After all, scams like this can occur at any place and at any time. The key is awareness. Keep an eye out for scam drivers. After all, they may be inspecting the habits of your driving or following your vehicle. You should always make sure there is enough room in front of your car to stop in a hurry.

Also, take notes if an accident occurs. Get information about the other car. Go so far as to notate every person in the other vehicle. Record damages to vehicles and structures on a disposable camera or your smartphone. Never use another person's judgment; always use your own.

Do not let another driver 'wave you into traffic,' it is much safer to let other vehicles pass until you know you have enough room to get in or out of traffic. Also, if an accident occurs and you sense something is not quite right, make sure you convey this to your insurance company. These are just some of the ways to protect yourself from insurance scams and fraud.

What About HealthMarkets Insurance Fraud Lawsuits?

The health insurance provider, HealthMarkets, made the news a lot in the last several years. But sadly, it's not for the reason that the company wanted. The insurer has landed into hot water several times. And this is because it claimed to offer comprehensive health insurance for its consumers. But instead, it failed to provide what it had promised. In 2010 the company was even sued by the Los Angeles City Attorney. The basis of the charging document was false advertising. In other words, Los Angeles believed this insurance corporation was lying to the public.

The LA Times even quoted the Chief Assistant City Attorney as saying:

“All their marketing and training and advertising was aimed at convincing people that this was comprehensive coverage that will protect you in your time of need. It certainly did not prove to be that way.”

Accident attorney Michael Ehline looking to clients.
Attorney Michael Ehline at his desk. Personal injury attorney.

This lawsuit is among many that the company has faced. This lawsuit alleges 13 consumers felt cheated by the company. And in one case, the cost of health coverage far outstripped what the company offered.

Hence, it left its consumers feeling misled. The Christensen family was without a breadwinner and $450,000 in back medical bills. The company, formerly known at UICI, has even become labeled 'junk insurance.'

It has repeatedly faced accusations of not providing proper care when needed. Also, this was much to the detriment of its customers. Also, the corporation has gotten embroiled in lawsuits multiple times. And it's gotten sanctioned by multiple government agencies. So if you or a loved one had coverage with HealthMarkets or UICI, you could have a case. Were you denied coverage at a critical time? Then you may be able to get justice. Of special interest, you may win even without filing a lawsuit.

Winning A Healthmarkets Claim.

Most of all, our skilled liability attorneys have battled big companies for the little guy. And we have repeatedly won time after time. So let us go to work for you and your family. Why not hold the insurance company accountable in bad faith? Also, you may also have other claims or causes of action? So call us today for a free, no-pressure consultation. Then we can discuss your legal rights.

Do You Need A Lawyer To Guard Your Rights?

Yes, you do! While, as discussed above, the law requires drivers to carry car insurance. They only need this to get a license and registration. There are cases where licensed drivers do not have it at all. So if injured in an accident with an uninsured driver, you will need full coverage. And you will also need legal assistance.

Ehline Law has attorneys specialized in the field of uninsured drivers and has dealt with similar cases in the past. When this occurs, the fiscal and emotional burden is rough.

Lawyers Can Challenge Smug Insurers?

Yes, they sure can. Ehline Law is familiar with the intricacies of the law and insurance's pernicious practices. These lawyers can get you the maximum coverage for such a situation. Also, we can use the uninsured motorist law to challenge your insurance company. We can demand the damages sustained be paid.

This will make sure that your insurance company will then pursue the wild party too. And they can force that party to pay. Of course, the insurance company will likely not like to do this. But that is why you paid extra.

An expert lawyer can directly challenge the offending party too. This could involve an out of court settlement. Or it could be a case in front of a judge. Either way, the need for prompt legal assistance is paramount.