Florida drivers are required to carry certain levels of auto insurance in order to legally drive on public roads. The idea behind this requirement is that when an accident happens, and the person who causes the accident is not able to financially cover the costs incurred by the victim, the insurance company will cover the accident victim’s costs. However, insurance companies are not always willing to cover all the costs associated with an accident, or they may deny a claim altogether. When this is the case, the accident victim is permitted to file a lawsuit against the insurance company, asking the court to require the insurance company to hold up its end of the bargain.
In a recent case, Etherton v. Owners Insurance Company, an appellate court upheld a $2.25 million verdict in favor of the plaintiff after his attempted negotiations with his own insurance company were fruitless. The award consisted of the requested amount of $750,000 for the plaintiff’s injuries, as well as $1.5 million for the insurance company’s failure to settle the claim in a timely manner.
The Facts of the Case
Etherton was involved in an accident with another motorist, who happened to have very low limits on his insurance policy. Etherton settled with the other motorist’s insurance company for $250,000, but since he sustained serious injuries that required three surgeries, he sought additional compensation through his own insurance company under the underinsured motorist provision of his insurance contract.