MVA - Plaintiff's insurer offers unexpected settlement funds...advice?

[imachristian13]

What is the name of your state (only U.S. law)? MD

[Where'd my post go?]

Last Fall, our daughter was in a motor vehicle accident with an unlicensed, uninsured driver. That person was driving an insured vehicle, thankfully. The settlement for our totaled car took place in December. However, when we were discussing our options with an attorney prior to filing claims, he stated his belief that we shouldn't expect a penny more than the medical fees our daughter incurred.

Yesterday, we received a settlement offer that included all of the medical fees PLUS payment for lost wages and pain/suffering. While we are pleased with receiving such an offer, we can't help but wonder "why?"

Any thoughts? How might I ask?

Thanks so much!

 

[HighwayMan]

Last Fall, our daughter was in a motor vehicle accident with an unlicensed, uninsured driver. That person was driving an insured vehicle, thankfully.

Huh? The vehicle is insured so how is the driver "uninsured"?

 

[LdiJ]

What is the name of your state (only U.S. law)? MD

[Where'd my post go?]

Last Fall, our daughter was in a motor vehicle accident with an unlicensed, uninsured driver. That person was driving an insured vehicle, thankfully. The settlement for our totaled car took place in December. However, when we were discussing our options with an attorney prior to filing claims, he stated his belief that we shouldn't expect a penny more than the medical fees our daughter incurred.

Yesterday, we received a settlement offer that included all of the medical fees PLUS payment for lost wages and pain/suffering. While we are pleased with receiving such an offer, we can't help but wonder "why?"

Any thoughts? How might I ask?

Thanks so much!

Stop wondering why and just grab it with both hands. That is better than you could have hoped for considering the circumstances. Do NOT ask any questions, just accept the offer.

 

[LdiJ]

Huh? The vehicle is insured so how is the driver "uninsured"?

The driver was unlicensed...

Also, it varies from state to state in regards to whether the insurance follows the car or follows the driver. I am actually seriously surprised that the insurance is covering anything considering that the driver was unlicensed.

 

[ecmst12]

It doesn't vary from state to state. Insurance always follows the car. If the driver has separate insurance (if it's a borrowed car), that insurance would be secondary to the insurance on the car. And in almost all the policies I've seen, license status is irrelevant to coverage. Rarely, if the owner KNOWS the driver was unlicensed and allowed him to drive it anyway, coverage could be excluded, but that would be a less common policy.

 

[LdiJ]

It doesn't vary from state to state. Insurance always follows the car. If the driver has separate insurance (if it's a borrowed car), that insurance would be secondary to the insurance on the car. And in almost all the policies I've seen, license status is irrelevant to coverage. Rarely, if the owner KNOWS the driver was unlicensed and allowed him to drive it anyway, coverage could be excluded, but that would be a less common policy.

I know of several people, in my state, whose unlicensed teens took the car without permission, wrecked it, and the insurance denied coverage. So I do not think that its "rare". As far as the rest, that is what was once explained to me by my father, who was an insurance agent. If that is wrong or outdated, mea culpa.

 

[ecmst12]

That's a different situation that doesn't apply here. Every time you think you understand auto insurance, I tell you that you're wrong. I wish you would stop talking about things you know nothing about. I don't question your tax knowledge.