Settlement Issue

[CAdriver07]

What is the name of your state? California

Hi,

My wife and I were parked in a parking lot when a car smashed into us. Our car was totaled. We were fully insured. So was the person who hit us.

My wife put in a claim with our insurance company because we have MedPay for this type of situation that works quickly. She received medical treatment and our insurance company paid just fine since we pay every six months for MedPay.

My wife missed a good deal of work because of this accident. She also had a medical problem which this accident made worse without any question. Though she is fine now.

So she called the other drivers insurance company and they told her that she can file a claim. They had previously, and immediately, paid me for the cars value at that time, but we hadn't made any injury claim with them because our insurance paid for it. She met with the adjuster and told them because of what their client did I had to buy a new car. I was surprised when they told her they would give me the difference of what I paid for my totaled car and the car I replaced it with, which also turned out to be the amount I paid to keep the totaled car (although it became a salvaged car, I repaired it myself and gave it to someone needy) It was only a thousand dollars difference.

She then asked about her lost wages and they offered her that amount.

My question, she thinks she has to give that to our insurance company because they paid for her medical bill out of our MedPay. Is this true?

I told her I felt this wasn't true because then what are we paying premiums for. We pay for MedPay so that we are covered for medical expenses in case of an accident. Besides this money is for her lost wages. The settlement is just under what she would have earned if not for the accident.

Thanks for your help.

 

[stephenk]

If your own carrier paid your wife's medical bills and your wife also received payment for those same bills from the other party's insurance company, you are required under your policy to repay your insurance company.

If the other carrier only paid for property damage and lost earnings then your wife is not obligated to repay your carrier for medical bills that were paid under med pay.

 

[CAdriver07]

If your own carrier paid your wife's medical bills and your wife also received payment for those same bills from the other party's insurance company, you are required under your policy to repay your insurance company.

If the other carrier only paid for property damage and lost earnings then your wife is not obligated to repay your carrier for medical bills that were paid under med pay.

Thanks for the information.

I have one other question: On the letter it say, "We have discussed settlement for your bodily injury claims as documented in the enclosed settlement options."

Her loss of wages is a result of the bodily injury, does their wording suffice or does it need to specify settlement for "loss of wages due to bodily injury".

She did ask that they pay our insurance company back plus her loss wages. The settlement offerred reflects her lost wages.

Thank you.

 

[ecmst12]

Your insurance company can, and probably will, pursue reimbursement from the other driver's insurance company directly. Call them and ask them about it. They are probably doing the same for your property damage claim as well.

That's a great thing that you did, repairing your salvaged car and giving it away, though.