Personal Injury Lawsuits

If you find yourself involved in a personal injury lawsuit, you probably have a lot of questions. This is a very rare thing for most people, which means chances are very high that you have never experienced anything like it before. Many of the questions people have do not actually have anything to do with the case itself. For example, do you know how your lawsuit will affect your insurance policy? This guide will focus entirely on this question.

Your Insurance Rates

The answer is that your insurance policy will be completely unaffected unless you choose to report your injury to your insurance company. If you choose to report the injury and collect compensation through your insurance, then your rates will go up. Then, if you win your case, a portion of the winnings will be used to pay the insurance company back. It is almost a guarantee that this will not lower your insurance rates back to where they were originally, although technically this is up to the insurance company’s discretion.

It is important to note that the court winnings will likely be higher than what you have to repay your insurance company. You may receive compensation for pain and suffering, which is not something insurance policies include. Additionally, insurance companies often get discounts from hospitals for expensive medical procedures and tests. The defendant is responsible for paying the full price, rather than the discount you receive through your insurance policy.

The Pros and Cons of Using Your Insurance

The big question you have to ask yourself is whether or not you should accept payment from your insurance policy. There is no right answer, so you need to evaluate the situation yourself.

The pros of going through your insurance are:

• Avoid risk – If you lose your court case, it will likely be too late to file an insurance claim, which means you cannot receive compensation from either source.
• Cover initial costs – Many people simply do not have enough money to pay for medical treatment in the event they are injured. While waiting for your lawsuit to conclude, you will need to pay your medical bills somehow.
• Faster compensation – Personal injury lawsuits are slow. They usually take months to conclude, or it could even be longer than a full year.

There is really only one con of going through your insurance, but it is a big one. Your rates increasing can put a major strain on many people’s finances. You can discuss the matter with a personal injury lawyer, like a personal injury lawyer in St. Paul, MN.

Thanks to Johnston & Martineau, PLLP for their insight into insurance policies and personal injury lawsuits.