What Everyone Needs to Know About Auto Insurance
Yesterday afternoon I discovered Ben Glass’s post from September 18, 2009, Hulk Hogan Sues His Lawyers. In his post, Ben Glass recounts the tragedy of Nick Bollea’s serious automobile accident when he was 17. A passenger in the vehicle was permanently injured. Terry Bollea’s (aka “Hulk Hogan“) is Nick’s father. Unfortunately, at the time of the accident the Hogan family only had $250,000 in auto insurance coverage with Progressive Insurance Company. After the accident, Hogan did not notify Progress of the case. Instead, the family hired the law firm Zuckerman Spaeder to represent young Nick in any civil claim and any criminal claim that might arise from the accident. According to the post, the Hogan family agreed to pay $550 per hour to Zuckerman Spaeder. Ultimately, Zuckerman Spaeder fees and costs totaled nearly $1,500,000. Now Hogan has a lawsuit filed in Florida against Zuckerman Spaeder alleging his son’s former law firm never told the Hogan family that Progressive would have paid the entire cost of Nick’s defense.
Glass Conclusions
Glass concludes that this case could become very interesting and expensive for Zuckerman Spaeder if the allegations are true.
Glass also noted off hand what kid graduating from high school in America today does not know that:
- If you cause an accident your car insurance company will pay for your defense
- If you cause an auto accident call your insurance company and report it
Additional Considerations
I suspect there was more to Mr. Hogan’s choice of Zuckerman Spaeder instead of contacting Progressive in the first place. Being a public person he may have wanted/needed special attention to minimize media attention to the case or other services. The real tragedy here may be that Hogan clearly thought little of the insurance he purchased and his carrier.
If Terry Bollea’s (aka “Hulk Hogan”) purchased his insurance from Progressive, it is quite possible that he did so directly without an agent or broker to guide him. On the face of it, a $250,000 personal auto policy seems far too low for a public person such as Hogan. Personal umbrella insurance is very inexpensive and should be considered for any person worth more than $250,000 or earning more than $250,000 annually. Unfortunately, not all personal umbrella policies are the same, only a select few include coverage for Uninsured Motorists/Underinsured Motorists. All families should consider carrying UM/UIM coverage equal to their Auto/Umbrella limits, or as high as possible – if liability insurance is essential to protect yourself from lawsuits from third parties, it stands to reason that you need to protect yourself from injuries caused by third parties with no insurance or insufficient insurance. Had he gone to Progressive direct, what recourse would he have against Progressive for underinsurance?
When was the last time your carefully reviewed your own coverage? As insurance brokers specializing in providing insurance coverage for lawyers and law firms, many of whom represent victims of automobile accidents, it blows my mind how many fail to procure sufficient insurance to protect their own family in the event of a catastrophic accident. Please contact Bill Yates or Cary White at Presidio Point Insurance Services or look at our website at www.legalmalpracticeinsuranceservices.com and we will help you do this important personal insurance review. You may also contact us toll free at 1-800-355-1204.
Contact
Cary White, President
Presidio Point Insurance Services Inc
1-800-355-1204 x 901
cwhite@presidiopoint.com
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