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A drunk driving crash can leave you emotionally and financially devastated.
An injury may have you struggling to pay medical bills, especially if you or your loved is no longer able to work. There may be special equipment or medical treatment you require but cannot get because of the cost. You may even be having difficulty paying for the necessities of life such as food and shelter.
Perhaps you were financially unprepared for funeral expenses or there are no life insurance benefits to help you care for your family. The death of your loved may have even left you the sole breadwinner and you are concerned about your financial future.
Financial recovery after a drunk driving crash can be difficult. Understanding what services and resources are available to you can help. Below is information on financial recovery and services and resources you might find helpful. You can either scroll down or click these links to be taken to the information you need now:
After the Crash | Life and Medical Insurance Benefits | Automobile Insurance Benefits | Employee Benefits Social Security/Veterans Benefits | Bank Accounts | Crime Victims Compensation | State and County Social Services | Vocational Rehabilitation Services | Civil Rights/Legal Assistance for the Disabled Restitution | Civil Suits | Creditor Intervention | Bankruptcy Issues
After the Crash
Whether you or a loved one was injured or a family member was killed in a drunk driving crash, it can have a significant impact on your financial situation. And this financial strain can leave you feeling re-victimized.
It certainly isn’t fair that you have to pay both emotionally and financially for someone else's irresponsible decision to drink and drive. It’s common and understandable for someone in your situation to be angry and frustrated.
Depending on your situation, you may be facing funeral expenses, medical bills, ongoing home care services needs, childcare, counseling and repair or replacement of your vehicle. You may be feeling overwhelmed by your financial situation and worried about what your financial future holds. You may even be facing a complete alteration in your lifestyle in order to maintain the necessities of life. You may also feel that there is no one you can turn to for help.
As upset and frightened as you may feel right now, there are several things you can do and resources you can turn to for help.
The first thing you can do is to get all the necessary documentation you will need for various claims you can file. For a death, you will need about a dozen certified copies of the death certificate In order to complete the filing of various types of claims, obtain at least twelve certified or original copies of the death certificate. Photocopies are usually not accepted. At times, copies of a marriage license, military discharge papers, social security numbers and birth certificates will also be required. For an injury, make sure you have copies of items such as your marriage license or certificate, any military discharge papers, social security numbers and birth certificate.
Next you will want to contact all the appropriate agencies or companies to get copies of the paperwork you will need to fill out. Make sure to review the requirements and instructions carefully and provide all that is requested. Incomplete forms or missing documentation will only delay processing of your claim or even cause it to be denied.
Also, try to refrain from making any unnecessary major financial decisions for at least a year after the crash. If possible, decisions such as moving, job changes, investments or sale of properties might be best made after your life has settled down a bit and your full capacity for clear and rational thinking has been restored.
Life and Medical Insurance Benefits
If there is a life or medical insurance policy, contact the claims benefits department as soon as possible. The money from a life insurance death benefit, which is payable to a specific beneficiary, should be immediately available to the beneficiary. However, delays in payment are not unusual because there is often an investigation to ensure that the manner of death meets the requirements of the policy.
All policies should be read carefully before filing a claim. Some life insurance policies include double or triple indemnity benefits, which means that some or all of the benefits will be increased if the death resulted from a specific cause or under specified circumstances. Many policies also include and "incontestability clause," which means the insurance company cannot dispute the validity of a policy after it has been in force for a specified period of time.
You might also want to contact your family attorney, stockbroker, financial planner, banker, accountant and even your loved one’s employer to ensure all policies are located. Every year millions of insurance dollars go uncollected because no one knew about their loved one’s policies.
Notify each insurance company of the death and request appropriate forms. Follow the instructions carefully as to not delay processing or denial of benefits. You will also want to check for existing insurance policies in which the deceased was named as a beneficiary to change the beneficiary. This includes automobile insurance policies.
You will need to notify the medical insurance (company or case manager) if your loved one was injured. Check your medical policy to see if there is a "waiver of premiums" benefit, which pays the premiums for the disabled individual. Depending on your circumstances, it might be best to consult with an attorney to understand the best way to get your bills paid.
As soon as the injury occurs, it’s important to keep a chronological log of all the aspects of the injury as well as expenses related to the injury, including counseling and loss of wages. This documentation will be important information when filing a claim.
If an insurance company denies you coverage, file an appeal. You can also contact the State Board of Insurance at your state capitol to learn what your rights are in seeking payment.
Automobile Insurance Benefits
As soon as you are able, you will need to contact your automobile insurance agent to notify him or her of the crash. Your insurance company will contact the insurer of the offender. Allow your insurance company to negotiate on your behalf with the offender’s insurance company. If the offender’s insurance company will not pay you benefits or if the other driver did not have insurance, then you may eligible for payment by your own automobile insurer.
Depending on whether you live in a state with "no-fault" or "fault" insurance, insurance benefits may differ. If you live in a no-fault state, costs are covered by the policy of each individual involved in the crash. This holds true even if the driver was driving someone else's vehicle. Also, in a fault state, if the other driver is found liable for the crash and had insurance, you will be eligible to receive benefits from that driver’s insurance company. If the driver who was liable for the crash did not have liability insurance, you may be eligible to receive benefits from the uninsured/underinsured motorist provisions of your own policy.
In addition to death, property and medical benefits coverage, you may also be eligible for coverage of a rental car, lost wages, replacement costs for services such as child care and housekeeping, mental health counseling benefits, future medical bills, loss of future earning capacity, and past, present and future pain and suffering.
Frequently, no-fault benefits are open-ended, which means bills are paid as they are submitted. There are situations when a lump sum payment is offered. In this case, a detailed explanation of anticipated costs and losses is required.
You may have been or could be approached by an insurance adjustor who requests you to sign an insurance release. This form releases the drunk driving offender and his or her insurance company from future liability. Any information you disclose or decisions you make at that time could have far-reaching financial ramifications.
Before speaking with any insurance agent, be sure you know whose company the adjustor represents. Also, grief or a painful injury can make you feel numb and confused. If you are not able to discuss the case rationally with the adjustor, ask him or her to return at another time. It’s also a good idea to have a trusted person with you when you discuss insurance and to not give a signed or recorded statement. If you do decide to sign an insurance release, you may want to hire an attorney to evaluate your case before you sign anything.
For any insurance settlement, you will need to have detailed documentation, so as soon as you are able, get organized. Make sure your files include copies of crash reports, estimates on repairing or replacing the automobile, medical and funeral bills and any copies of letters from insurance companies. Also, keep a daily record of the adverse effects of the crash, including psychological ones. Any documentation regarding employment as it relates to the crash or your injury is also important.
Insurance adjustors may or may not be able to advise you of your benefit rights based on statutory insurance law. Ask for a written copy of claim rights in your state so that you can understand what you are entitled to. Remember, it is the job of the insurance adjustor to negotiate the best deal possible for the insurance company.
In many states, insurance companies are required to act in "good faith." That means if claims are unreasonably denied, valid claims are not promptly paid or victim families are coerced into settling for less than is due to them, then there may be cause for legal action against the insurance company. Punitive damages may also be recovered upon proof of actual malice, fraud, or oppression, which is usually referred to as "outrageous conduct."
Employee Benefits
Sometimes surviving family members are allowed benefits through the deceased person’s employer. You may want to call the personnel department of your loved one’s employer to ask about life insurance policy benefits, accrued vacation time and remaining paychecks.
If you and other dependents are covered on your loved one’s health insurance policy, see how long coverage will continue. If coverage does not continue after a certain date, ask about options for continuation of coverage. Often there is only 30 to 90 days to convert the policy, so timeliness is important.
Also, the Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan. This coverage is for limited periods of time and for certain circumstances such as voluntary or involuntary job loss, reduction of work hours, transition between jobs, death, divorce and other life events.
You might also want to check with your own employer about certain benefits you may need to use in the coming months. For example, check to see if mental health counseling is covered in the event you need it. Also, get clarification on how time off will be handled for you to attend court hearings and the multitude of other matters you will need to handle during work hours.
If you were injured, you need to notify your personnel department immediately. You will need to work with them to determine short- and long-term disability depending on your situation. Under the Americans with Disabilities Act and the Family Leave Act you are guaranteed certain rights. Understand those rights to ensure you receive all the benefits you are entitled.
Social Security/Veterans Benefits
Social security benefits may be available to you, in part, to replace earnings lost due to the death or permanent injury the family’s wage earner. Typically, it is a surviving dependent spouse and/or children that are eligible. A small death benefit to assist with funeral expenses might also be available to you.
For veterans, notify the Veteran's Administration of a death or injury immediately. Injured veterans might be eligible for treatment at V.A. Hospitals at no cost.
If your loved one was already drawing Social Security or veteran benefits and a check written to him or her arrives after the death, it must be returned. If you are the surviving spouse and the check is made out to you and your spouse, take it to the nearest office to be stamped so that you can to cash the check.
An injured victim/survivor who worked prior to the crash may be entitled to Social Security Disability. Social Security’s definition of a disability, however, is narrow. The disabled worker must be unable to do any “substantial” work for at least one year, or the condition must be expected to result in death. A treating physician can project that a person will not be able to work for at least one year prior to the end of that year. Benefits continue until death, the condition improves or the person is able to find substantial employment.
An injured victim/survivor can apply immediately for benefits. Because the application process is lengthy, it is advised to apply as soon as possible. If turned down, reapply or appeal for benefits. File early, file often.
If Social Security finds you disabled, they will not pay benefits until five full calendar months after the onset date of disability. For example, if a person is involved in a crash on December 15, 2005, Social Security will not pay benefits until June of 2006. That is, if it is determined the person is in fact disabled.
Once a person is receiving Social Security Disability for at least 24 months, he or she may be eligible for federal health insurance benefits under Medicare.
Supplemental Security Income (SSI) is a Social Security program designed for low-income individuals who have few assets, and who qualify because of age or disability. Generally, if you meet Social Security’s Disability standards, you meet SSI’s disability definition.
Limits on how much you can earn and how much you can receive in benefits is dependent upon where you live. Income includes earnings from work, Social Security, pensions and alimony. “Non-cash” sources, such as free food and shelter, also count as income.
Again, do not delay in applying for benefits. Unlike Social Security Disability, there is no waiting period for benefits once disability and other eligibility requirements are met.
Once a person is receiving SSI payments, he or she may also receive health insurance benefits under Medicaid. Medicaid may help to pay for doctor visits, hospital bills and some prescriptions, depending upon the state in which you live.
Bank Accounts
Your loved one may have had individual and/or joint bank accounts. In the case of death, the rules governing when and under what circumstances funds can be withdrawn from these accounts vary from state to state. It may also depend on how a particular account was set up.
In the case of accounts that are in the deceased name only, an administrator of the estate may have to be appointed and the account changed to the name of the administrator.
If the account is held jointly, the law in many states presumes that the surviving account holder is entitled to the remaining assets. This, however, can vary based on the relationship of the survivor to the deceased.
A safe deposit box in the name of the deceased or jointly with someone else's name may be sealed at the time of death. Requests for access must be signed and witnessed.
Permanently disabled individuals may be able to begin payouts on IRA's, annuities and other retirement benefits with proper documentation.
FINANCIAL RESOURCES
Crime Victims Compensation
All states now have Crime Victims Compensation programs that reimburse crime victim families for out-of-pocket, non-property expenses.
These benefits were designed for victims in situations where insurance and civil justice recovery is not available. Benefits include funeral expenses, medical expenses, loss of wages and other financial needs that are deemed reasonable. All states provide for mental health counseling in the case of a death. There are also many states provide that emergency funds, which are available within a few weeks of the crash.
Since regulations vary from state to state, it is wise to call the prosecutor, the police department or your MADD Victim Advocate for information and a Victims Compensation Application.
All states require that the crime must be reported to the police within three to five days of the incident and that the victim’s family must cooperate with law enforcement officials in the investigation of the case. This is seldom a problem in cases of drunk driving. Additionally, application for Crime Victims Compensation must be made within six to 12 months of the crime.
You will be expected to submit bills or receipts with your application so keep good records. With the exception of emergency awards, applications can take anywhere from several weeks or months to process, so submit your application as soon as possible.
State and County Social Services
Families with limited income may be eligible for emergency, short-term assistance from social service agencies. This assistance typically includes vouchers for rent, utilities, food and medication.
A parent of dependent children may qualify for Temporary Assistance for Needy Families (TANF) if the wage earner was killed or injured. Applying for this assistance should be done at the local State Department of Human Services or equivalent agency. Food stamps are also available for low-income families. It usually takes several weeks to obtain TANF or food stamps.
Parents of a child who is injured (up to age 21) can apply for what is generally referred to as Children’s Special Health Services. Your hospital’s social service works can provide you with application information. Shriner's Hospitals also provide free care for children who qualify.
“Loan closets” for medical equipment are available in communities across the nation. These service clubs frequently loan items such as crutches, wheelchairs and hospital beds to those in need.
Other resources include hospital social service departments, the Salvation Army, local charities and churches. You can call the United Way or your local crisis hotlines to be put in touch with one of these resources.
Vocational Rehabilitation Services
All states have vocational rehabilitation programs for those with an injury that has resulted in a substantial handicap that could effect employment. These services are also help in obtaining employment. Eligibility varies from state to state.
Most of the services pay for medical, psychological and vocational evaluation and treatment including hospitalization, surgery and therapy to decrease or remove the disability. Devices such as artificial limbs, braces and wheelchairs as well as training in rehabilitation centers, trade schools, business schools, and colleges or universities are provided to enable individuals to learn a trade.
Civil Rights/Legal Assistance for the Disabled
A disabled person has, by law, guaranteed rights to education, employment, health care and other public or private services that are federally funded.
If you feel that a school, hospital or social service is violating these rights, write or call your regional Office for Civil Rights of the Department of Health and Human Services.
LEGAL REMEDIES FOR FINANCIAL RECOVERY
Restitution
Restitution is when the court orders the convicted offender to pay the victim or surviving family money or services to hold him or her personally accountable for a crime and to restore, in part, the victim’s loss.
For injured victims, requests for restitution can cover medical expenses, funeral expenses, lost wages, lost or damaged property, counseling fees and other expenses considered reasonable by the court. In homicide cases, this can include a family’s funeral and travel expenses as well as reasonable attorney fees incurred in closing the victim’s estate.
Most states require the court to consider the current financial resources of the defendant, the defendant’s future ability to pay, and, in some states, the burden that restitution will place on the defendant and his or her dependents.
Restitution is not a quick or easy solution to financial stress. It’s dependent on the conviction of the offender, which rarely occurs until months or even years after the crime was committed. Also, offenders sometimes have limited income from which to pay restitution, especially if they are sent to prison. Procedures for the collection of restitution from the offender and transferring it to the victim are rarely adequate. And, once the offender is out of the criminal justice system, a means of monitoring the payments no longer exists.
In most cases, unless a substantial lump sum of restitution is ordered immediately following trial, chances of actually receiving the restitution are low.
Civil Suits
Some crime victims opt to file a civil suit of wrongful death or personal injury against the person responsible for the death or injury of their your loved.
Civil action is completely separate from the criminal case. In a criminal case, the state provides a prosecutor to try the case. If you chose to pursue a civil case, you will need to hire an attorney.
Civil actions depend largely on the type and extent of injuries or death inflicted. Recovery of medical, funeral and property expenses are usually the financial recovery sought in such cases. Financial recovery is also possible for more remote damages such as past and future wage loss, and past and future pain and suffering. Some states also allow for punitive damages, which is additional money to punish the offender.
If a public entity such as the city, county or state government was in any way responsible for the death or injury through commission or negligence, financial recovery may be possible from them as well. Traditionally, government entities have been immune from civil suits. However, appellate courts in a number of jurisdictions have now found them responsible for such things as inappropriate parole release, inadequate probation supervision, and failure to arrest a drunk driver who later kills someone.
In most states, it's considered a misdemeanor offense for an adult (someone 21 or over) to serve alcohol to a minor (someone under the legal drinking age of 21). These offenses are prosecuted under Dram Shop Laws, which apply to commercial establishments such as restaurants or bars, or by Social Host Liability Laws, which pertain to non-commercial locations such as private homes. In both cases, the restaurant or host is potentially liable if they serve alcohol to an obviously intoxicated person or to a minor who then becomes involved in a crash that causes death or injury to another person. Under these laws, the restaurant or host could be sued in a civil suit.
Negligence in civil cases is exceedingly complex and open to a variety of interpretations. Only your attorney can advise you. MADD’s brochure Selecting a Civil Attorney can provide you with more in-depth information on the process.
Creditor Intervention
The unanticipated death or serious injury of a family member nearly always means that ongoing bills are set aside until immediate expenses are paid.
Check all loans, mortgages and credit card contracts to see if there is a clause that pays the balance in the event of death or incapacitating injury. If there is, notify the creditor immediately and request claim forms.
In some cases, emergency funds are available for bills. Public utilities such as the electric, gas and water companies may extend credit if an application is completed. In the event that a landlord is uncooperative, phone the municipal office and ask for a copy of the City's Landlord/Tenant regulations. Most legal aid services also have summaries of these regulations.
You will also want to list all creditors, their addresses and the amount owed. Consider the funds you have available after paying immediate expenses. Determine how much, if anything, you can pay on the bills. Then write each creditor and explain what has happened, how much you can pay per month and when payment can be expected. You will want to request that they agree to a payment schedule that will fit both your needs.
It’s to the creditor's advantage to work out a payment schedule so that they are eventually reimbursed. It’s against the law in most states for a creditor to harass or intimidate a debtor. If a creditor refuses to accept a payment plan, write another letter and send a copy to your attorney. If that fails, ask a legal aid service or attorney to intervene.
Bankruptcy Issues
If the defendant was driving under the influence of alcohol or other drugs and does have income and assets, your attorney may still advise against a civil suit. In fact, your attorney may tell you that the defendant will simply file bankruptcy to avoid paying you. That may not be true.
Bankruptcy law is federal, and changes have taken place during recent years to assure that convicted drunk drivers cannot obtain relief under Chapters 7 and 13 of the Federal Bankruptcy Code to avoid paying civil judgments or criminal restitution in claims arising out of drunk driving crashes. In other words, if you obtain a judgment against the intoxicated driver and he or she subsequently files bankruptcy, the bankruptcy judge will not discharge the claim arising out of the drunk driving crash. The offender will still owe the judgment although you may have a difficult time collecting on it. However, bars and restaurants sued for irresponsible serving may still file for corporate bankruptcy under Chapter 11.
Qualified bankruptcy attorneys should always be consulted in these cases. The American Bar Association and most State Bar Associations have Bankruptcy Sections which can refer you to qualified attorneys.
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