MOTOR ACCIDENT CLAIMS

Within the field of litigation there are many forms of claim.  The motor accident claim is common and usually incorporates a personal injury claim on behalf of the victim.  F Haskins & Co deal with all aspects of motor accident claims whether for the victim or an insurance company.

MOTOR INSURANCE AND THE UNITED STATES -

A TRAP FOR THE UNWARY

An Article written by Advocate Felicity Haskins which appeared in the Guernsey Press September 2001:

"We’re off to Florida with the children this summer. We are going to hire a car and go to Disneyworld, Universal Studios and all the attractions round Orlando! The children cannot wait."

Driving in America must be safe, mustn’t it? After all it is one of the most litigation-conscious countries in the world so everyone is properly insured.

Well, no, actually.

In this country we are used to the fact that every driver is obliged, by law, to hold unlimited third party insurance. Furthermore, we are reassured by the knowledge that the Motor Insurers Bureau will pick up the tab for damages if a motorist is uninsured. If, therefore, you or I, or any member of our family is seriously injured by a negligent driver we know that there is insurance cover to meet any award of damages, however large, that the Court may make.

Unfortunately, in the United States of America the situation is very different. The level of motor insurance required varies from State to State and may be as low as $100,000 (approximately £60,000). Furthermore, there is no equivalent organisation to the Motor Insurers Bureau.

What, therefore, is the position of an individual injured in the United States? Simply that there may be only a very limited amount of money available to meet any claim for compensation.

Let me take an example. Mr and Mrs A went to California with their children. They hired a car. The tour operator’s brochure suggested that they took an "all-inclusive" care hire package. That covered them for accidents which might be their fault.

Their hire car was stationary in a traffic jam when a rogue driver ran into it from behind. Their daughter suffered serious injury. It was the sort of case which, in Guernsey or in the United Kingdom would attract damages of £1 million or more. Unfortunately, however, the driver responsible only had cover of $100,000 and no additional assets from which any claim might be satisfied. They were left, therefore, with a minimal amount of money to pay for the long-term care and treatment of their daughter.

What is the answer? Additional insurance cover can be obtained from the car hire companies in America. It is called Uninsured Motorist Protection ("UMP"). It does, however, vary from company to company. Some may offer no more than $300,000 whereas at least one (Alamo) offers UMP $1 million.

It is not unlimited – that does not exist in the United States – but at least it will give you some additional cover and reassurance.

So, before you book your car hire check with your tour operator whether UMP is available. Ask them to find out the level of UMP being offered. Ask your travel agent – or look on the internet – to see whether greater cover would be available over the counter. The last point is important because some of the American car hire companies offer one level of UMP through English tour operators but only a lower level if you book, as an individual, on your arrival in the United States.

Much more complicated than you hoped or believed? Yes, but better safe than sorry.

Update:

On 25th October 2001 a claim for injuries sustained by a child was settled in the High Court in Manchester.  The case concerned the responsibility of tour operators to warn their clients of limits applicable to motor insurance in the United States of America.  Further details are available on the website of the chambers of 29 Bedford Row:  www.29bedfordrow.com.