Which Insurance Pays After an Auto Accident? Uninsured Motorist, PIP and MedPay
More than one insurance policy can apply after a car crash. People usually think first of the at-fault driver's liability coverage, but personal injury protection (PIP), MedPay and uninsured motorist (UM) coverage can matter just as much. A car accident lawyer usually requests the declarations page for every policy that might apply, because the coverage often decides how much of a loss can be paid.
Liability coverage and fault
Most states require drivers to carry a minimum amount of liability insurance, which pays for injuries and property damage the insured driver causes to others. Minimum limits are often low compared with the cost of a serious injury. In at-fault states, the injured person generally claims against the at-fault driver's insurer. Some states use a no-fault system, where each driver's own PIP coverage pays medical expenses and some lost income regardless of who caused the crash. No-fault states may restrict lawsuits against the at-fault driver unless the injury meets a legal threshold.
PIP and MedPay
No-fault states require PIP, and a few other states do as well, and some others offer it as an option. Depending on the policy, it can pay medical bills, part of lost wages and certain household expenses. Medical payments coverage, usually called MedPay, is separate and generally smaller. The coverage pays medical expenses for the policyholder and passengers no matter who caused the crash, up to its policy limit. An auto accident attorney will check whether these benefits require prompt notice or a written claim.
Uninsured and underinsured motorist coverage
Uninsured motorist (UM) coverage pays for injuries caused by a driver who has no insurance, and many states extend it to hit-and-run crashes. Underinsured motorist (UIM) coverage applies when the at-fault driver's limits are too low to cover the loss. Some states require UM coverage, while others allow it to be rejected in writing. Rules on stacking coverage from more than one vehicle or policy also vary. In some states, a policy held by a relative in the same household may provide UM coverage as well.
How a UM claim works
The UM claim goes to the injured person's own insurance company, yet in that claim the insurer stands in the shoes of the uninsured driver, so it may dispute fault and the amount of damages. Many policies require prompt notice, and a hit-and-run claim may require a timely police report. Some states require that the UM insurer be served https://edgargseg098.laurelcurrent.com/posts/what-to-expect-from-the-insurance-adjuster-after-a-car-accident with a copy of the lawsuit against the at-fault driver. A car accident attorney usually checks these steps early, because missing one can affect the coverage.
Coverage for the car itself
Collision coverage pays to repair or replace the policyholder's car regardless of fault, minus the deductible. The insurer can then seek repayment from the at-fault driver's insurer through subrogation, and the deductible is sometimes recovered too. Gap insurance and rental reimbursement are optional coverages that can matter after a total loss.
Health insurance and liens
Health insurance, Medicare or Medicaid may pay medical bills first and later claim repayment from a settlement. An automobile accident lawyer usually resolves these liens before funds are distributed. Coverage rules differ by state and by policy, and this article is general information, not legal advice.