Car Collision Does NOT Automatically Raise Rates - The Law

I had an insurance agent tell me "The insurance company is now raising rates if you are in a collision, regardless of fault." If you have heard this same thing, you want to read this -->

 The Law

This is one case where Utah has got your back. Due to insurance companies frivolously raising premiums, then searching for any justification, Utah Legislators put into law Section 31A-19a-212.  Which says:

(1)

Each rate, rating schedule, and rating manual filed for personal lines insurance may not permit a premium increase due to: (a) a telephone call or other inquiry that does not result in the insured requesting the payment of a claim; or (b) a claim under a policy of insurance covering a motor vehicle or the operation of a motor vehicle resulting from any incident, including acts of vandalism, in which the person named in the policy or any other person using the insured motor vehicle with the express or implied permission of the named insured is not at fault.

 Its Meaning

If you are in a collision where you are not at fault, it is illegal for the insurance company to raise your rates. If you call and open a claim, but the insurance company does not end up paying out, it is illegal for the insurance company to raise your rates. 

What You Should Do

If you are in a collision and the other person is at fault, WATCH YOUR PREMIUMS. If a few months after the collision you notice an increase in your rates, call your agent and tell them the law. You will most likely see your rates drop back down immediately. 

Stay safe and Drive on!

Defeating Liability Waivers

I'm talking about those waivers that pretty much every business makes you sign. You know which ones - the ones you never read but always sign. 

So what happens if you are injured after signing one of those? (I bet you never thought about that huh? Well, You can still recover. Here is how:

Some waivers are enforceable. So you may be out of luck. However, a liability waiver is not enforceable when it 
1. offends public policy;
2. is for activities within the public interest exception; OR
3. is unclear and ambiguous. (Pearce v. Utah Athletic Fund, AKA Boring legal citation).

1. What offends public policy? Almost nothing... Ok, not really. But it is hard to prove what public policy is in order to prove that it has been offended. Public policy is best proven by legislative actions, or statutes. Many statutes will tell you what their purposes are. Those purposes are considered public policy. 
      An example would be skiing. You sign a waiver for skiing, is it enforceable? No. That's because in the Utah Inherent Risks of Skiing Statute, the legislature said it is public policy to allow ski resorts to levy the burden of their negligence. A waiver, then, offends or contradicts that public policy. (whew, you're safe there.)
     Other examples: Product Liability within 78B-6-707; Construction liability under 13-8-1(2);  and Parent's waivers of childrens' rights under Hawkins v. Peart. 

2. What are activities within the public interest exception? Not something you likely do. These are public services. Need I say more? Here is a legal citation is you want it:  Berry v. Greater Park City Co., 2007 UT 87. Believe me, this exception does not apply to you. 

3. What is unclear and ambiguous? A lot. This is where the majority of the cases are won. A liability waiver is not valid unless it is unequivocal and can be easily understood by the average person. 

Besides a few exceptions, a liability waiver is usually enforceable. It is the age old battle between a contractual right and a tort liability right. As always, consult your attorney. 

You're Doing Auto Insurance Wrong!

I see the consequences of auto insurance mistakes every day. Here are the 3 mistakes you probably do!

1.   You have minimum PIP coverage -  What is PIP you may ask?  Well, PIP (Personal Injury Protection) is a coverage you already pay for - It is mandatory in Utah. You have to have it and it is a good thing. (more info here)
      One thing PIP pays for is Initial Medical Costs. In Utah, the minimum coverage is $3,000. Thats it! You know what that covers? -an ambulance ride or one ER visit. Choose one...  The average car collision costs $7,500 in medical bills, leaving you with $4,500 in bills.
      Heres the good thing - YOU CAN RAISE YOUR PIP! And you can do it for extremely cheap! We are talking a few dollars a month for $10,000 of coverage. Do that and you will start winning auto insurance. (Brush that shoulder player) --->

2.   Second Mistake, You Waived UIM or UM to save a few bucks. You big dumb idiot... UIM is Under-Insured Motorist Coverage. This is your protection when someone with low insurance limits hits you. UM is Uninsured Motorist Coverage. This is when someone with no insurance hits you. 
      Yesterday, this happened: My client was driving his car through an intersection. The Defendant ran the red light and T-boned him. BAM! Like Val Kilmer tackling cake.  My Client had an ambulance to the hospital and a dwarfing $35,000 in medical bills. After all that, here is the actual scary part - The Defendant had the state minimums for insurance coverage, only $25,000. That is the max my client can get from the defendant's insurance. I will repeat, my client, who was obeying traffic laws, can only get $25,000 from the defendant's insurance. Now What? He still has $10,000 in medical bills...
     Well, sadly, my client waived his UIM coverage to save money -  a whopping $5.14 per month! (smh) Had my client kept his UIM coverage, he would have had an additional $25,000 of protection, at least. So please, DO NOT WAIVE UIM/UM. The big mac you save per month is not worth what you give up. You're better than that!

3.   Lastly, you chose your coverage based off your premium. Unfortunately, all insurances are not created equally. Some pay you happily and others fight like Tyson. You want the one that pays you without hassle (hopefully that is obvious).   Those insurances tend to be more expensive. 
      The one that I have noticed to be the worst is Geico. My colleagues would add StateFarm and Farmers to that list. These companies actively look for reasons to avoid payment, to you, their client! Again, you deserve better. 

Thanks for reading and Drive On!