Which Insurance Pays After a Car Accident? Uninsured Motorist, PIP and MedPay
More than one insurance policy can apply https://mariouakr140.wordcanopy.com/posts/what-nhtsa-data-show-about-car-crashes-2 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. An auto accident lawyer will usually ask for the declarations page of every policy that might apply, because the coverage often decides how much of a loss can be paid.
At-fault and no-fault states
Most states require drivers to carry minimum liability insurance, which covers injuries and property damage the insured driver causes to others. State minimum limits can be low compared with the cost of a serious injury. In an at-fault state, the injured person usually makes a claim 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
PIP is required in no-fault states and in a few other states, while some states offer it as an option. Depending on the policy, it may cover medical bills, a share of lost wages and some 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. A car accident attorney will check whether these benefits require prompt notice or a written claim.
Uninsured and underinsured motorist coverage
Uninsured motorist (UM) coverage applies when the at-fault driver 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 fall short of 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. A relative's policy in the same household may also provide UM coverage in some states.
Making a UM claim
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, which means it can contest fault and the value of the claim. Many policies require prompt notice, and a hit-and-run claim may require a timely police report. In some states, the UM insurer must be served with a copy of any lawsuit against the at-fault driver. A car crash attorney will check these requirements early, because missing one can affect the coverage.
Vehicle damage coverage
Collision coverage pays to repair or replace the policyholder's car regardless of fault, minus the deductible. The insurer may then seek repayment from the at-fault driver's insurer through subrogation, which can sometimes recover the deductible as well. Rental reimbursement and gap insurance are optional coverages that can matter after a total loss.
Health insurance and liens
Medicare, Medicaid or a health plan may pay medical bills first and later seek repayment from a settlement. A motor vehicle accident attorney usually resolves these liens before funds are distributed. Coverage rules vary by state and by policy, and this article is general information, not legal advice.