Staten Island, New York Child Injury Lawyer Blog | Brooklyn Child Accident Attorney » car insurance

GEICO Reimburses Client for Lost Wage Claim

Frank Dito — Mon, 23 Nov 2009 23:22:13 +0000

I have blogged earlier about a matter where the client’s claim for lost wage benefits resulting from a car accident was denied. After looking into the denial and reviewing my client’s insurance policy, it was apparent that when she purchased her car insurance, GEICO excluded lost wage coverage from her policy for a cheaper rate. The reduction in her premium amounted to $18.00 per year. Understanding the New York State no-fault law, GEICO, or any other insurer, is required to include in every policy of car insurance written in New York State, protection for Basic Economic Loss. Basic Economic Loss provides for medical care and treatment and lost wages, as well as “other necessary” expenses, if you are injured through the use or operation of a motor vehicle. These basic protections are mandated by law and I began to question GEICO’s ability to exclude these protections. Despite numerous phone calls, GEICO continued to deny the client lost wage benefits based on the exclusion in the policy. I told the client that despite what GEICO claimed, they could not issue such a policy of insurance.

I researched the New York State Department of Insurance General Counsel opinions and found a strikingly similar issue. The opinion was issued in response to a request by a consumer asking if he was able to negotiate a cheaper insurance policy by excluding lost wage protection from his coverage. The General Counsel opinion made it clear that what the consumer proposed could not legally be done in New York state. Every insurance policy must include coverage for Basic Economic Loss.

I filed for arbitration to force GEICO to pay the client the lost wages, despite the policy exclusion. As an exhibit, I attached the New York State Department of Insurance General Counsel opinion. GEICO was due to answer the arbitration request on November 20, 2009. Instead of an answer, I received a phone call from an adjuster agreeing to settle the claim for the full amount owed. Despite the opinion, GEICO defended their actions and still maintained that the policy as sold was permitted in New York.

This case should be a reminder to all to use an insurance broker or read the terms of your policy if you decide to buy online or over the phone. I have published a book, “A Lawyer’s Guide to Car Insurance”, to help you understand your insurance policy and to make sure that you are properly protected. You can order the book, free of charge, by following this link.

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Can Auto Insurance Companies “Discount” Basic Benefits?

Frank Dito — Thu, 29 Oct 2009 20:41:37 +0000

With the proliferation of online car insurance, consumers aren’t always aware of what insurance they are getting for their money. Most people I speak with tell me that they purchased their car insurance based upon price alone and didn’t compare the benefits between different policies. Aware of the price competition, insurance companies are doing their best to shave every dollar in order to gain you as a customer. One company in particular, GEICO, has allowed their customers a “discount” for New York Work Loss. This discount, on the policy that I have viewed, amounts to $9.40. What most people don’t realize is that the “discount” takes away certain basic benefits that the New York State Legislature intended you to you receive in the event you were injured in a car accident and could not work.

After I applied for lost wage benefits on behalf of my client, I received a denial based upon my client’s election of the “discount.” I felt that although the client did receive the discount, GEICO couldn’t reach such an agreement without violating the insurance law. Research disclosed a 2002 New York Department of Insurance General Counsel Opinion that addressed the exact question. The Opinion states that “New York State Law specifies the minimum requirements for motor vehicle financial security coverage as a matter of public policy.” Based upon this Opinion, I have filed for Arbitration to recover my client’s lost wages. Besides the, fact that a $9.40 discount cost my client over $12,000, insurance companies cannot be allowed to interfere with the legislatures intent. The benefits enacted as law refers to them as “basic” and as such are legally mandated. The matter is currently in Conciliation with GEICO’s response due by 11/20/09. I will provide updates on this case as they become available.

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Unlicensed teen leads police on chase through Staten Island

Frank Dito — Wed, 08 Jul 2009 21:21:16 +0000

Silive is reporting that a teenager led cops on a chase through Staten Island today, causing pedestrians and other drivers to dodge his car as he ran through red lights and stop signs. Although it doesn’t appear that the chase caused any injuries, as an attorney, I always look at “what if?” – what if he did hit a pedestrian or hit a car – whose insurance would cover the loss?

Although the driver was unlicensed, the car he was driving may still be “insured.” The insurance company for that car may try and disclaim coverage – that means that they will say they are not responsible to pay because the terms of the policy were violated – and the car will be “uninsured.” In order for the insurance company to try to disclaim coverage, they may claim that the car was taken without permission by the unlicensed driver. Under the terms of most insurance policies, the lack of ”permissive use” may allow the insurance company to decline any financial responsibility. As the car’s owner, although you have paid your insurance premiums, your insurance company will not stand by you, despite what the TV commercials may say, and you will be left to defend any claims made against you on your own. At your expense.

If you are a pedestrian, and don’t own a car, you may apply for medical benefits and compensation for your pain and suffering through the New York State Motor Vehicle Accident Indemnification Corporation, or MVAIC. MVAIC protects New York State residents from accidents involving ”hit and run” or uninsured drivers. The MVAIC benefits are the minimum financial benefits mandated by New York State law, which in some circumstances, may be insufficient to compensate you for your injuries.

If you own a car, you may be able to proceed under the “uninsured motorist” coverage of your own car insurance policy. If you have done your homework and read my book, A Lawyer’s Guide to Car Insurance, you will have already purchased sufficient insurance to protect you in an accident. If you have only the New York State minimum required insurance, you may not be able to recover enough money to cover your losses.

If the driver was unlicensed but still had the owner’s permission to use the car, that car’s insurance will cover you against the physical and financial losses that you may sustain, provided you reach the “No-Fault Threshold.” Regardless of the extent of your injuries, you will be eligible for no-fault benefits, which provides medical coverage and lost earnings due to the accident. However, unless you sustain a “serious injury” in the accident, you may not be able to sue for your injuries.

It is important that if you own a car, you purchase sufficient insurance to protect you in a car accident. Unfortunately, most people discover too late that their policy doesn’t provide them with enough coverage in the scenarios discussed above. Take the time to read through the declaration page of your insurance policy and speak with your broker to make sure you are covered.

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