While insurance is supposed to provide a motorist with peace of mind after a Florida car accident, in reality, the opposite is often true. Because insurance companies are for-profit corporations, they rely on taking in more money each month in premiums than they pay out in claims. Thus, insurance companies approach each claim with the same goal: expending as little money as possible to resolve the claim.
In some cases, insurance adjusters will offer low-ball settlement agreements knowing the claim is worth much more in hopes of catching an accident victim in a moment of desperation. In other situations, insurance companies will outright deny a claim based on their interpretation of the policy language. For this reason, it is critical that Florida motorists take care to ensure that they understand their insurance coverage and that it meets their needs. A recent opinion issued by a state appellate court illustrates just one type of issue that may arise after a Florida car accident.
According to the court’s written opinion, the plaintiff was killed in a traffic accident when he was struck while riding a moped. The moped was powered by a small 49cc motor, similar to that which would power a scooter. The motorist’s family initially filed a claim with the other driver’s insurance company. However, because that policy only provided $100,000 in benefits, the family then filed a claim with their insurance company under the underinsured motorist (UIM) provision of the policy.