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MA Insurance Loophole

Studies show that the average medical bills for a car accident is $15,443. However, for more severe crashes, like Romneisha Smith’s, the costs go up to an average of $126,000. The at-fault party is liable for the bodily injuries done to you.  You are paid through their car insurance. But what if their coverage is too small?

Before you get into a taxi or, in any car in Massachusetts, be sure it has more than a $10,000 bond in coverage in case of an accident.

Romneisha Smith was just 28 years old when her life was changed by a negligent cab driver that struck the vehicle in which she was a passenger. The crash caused a fractured hip and a ruptured tendon.  Her injuries will dramatically dampen her quality of life for years. Between the emergency medical care, treatment, and physical therapy, Romneisha quickly found herself in a rapidly growing pile of medical bills. She was so badly injured that she could not walk by herself, nonetheless return to work. On top of the physical and financial hardship, Romneisha would never get the time lost with her son during her long recovery.  Because the accident was not her fault, Romneisha, as most people would have, believed that the cab company’s insurance would at least cover her medical expenses.

She was wrong.

The most amount of money that the at-fault driver had to pay Romneisha was $10,000.

How could this happen? How is this legal?

Massachusetts has a controversial law, Title XVI Chapter 90, Section 34D that allows drivers to make a deposit of $10,000 in the state treasury account instead of having to buy traditional car insurance that requires at a minimum of $20,000 in Bodily Injury coverage. This loophole law further harms the victims of car accidents by limiting the money they can recover for medical expenses and pain and suffering. Many cab companies and private drivers use this century-old law to save money on their car insurance.

The attorneys at Jason Stone Injury Lawyers made sure that Romneisha did not fall through the cracks of this flawed.  They brought the cab driver and the cab company to court and, in the end, the cab company was ordered to pay $200,000.  They are going into their 3rd year of fighting for Ms. Smith, and it does not seem like the end of their efforts to collect the amount of the verdict is in sight.

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