How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Crash

How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Accident

More than one insurance policy can apply after a car crash. The at-fault driver's liability coverage is usually the first source people think of, yet personal injury protection (PIP), MedPay and uninsured motorist (UM) coverage can matter as much. A car accident attorney will usually ask for the declarations page of every policy that might apply, because the coverage often decides https://cashhscd778.dovetailscope.com/posts/which-insurance-pays-after-an-auto-accident-uninsured-motorist-pip-and-medpay how much of a loss can be paid.

How fault rules shape coverage

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. A smaller group of states uses a no-fault system, in which each driver's own PIP coverage pays medical expenses and some lost income regardless of fault. In those states, a lawsuit against the at-fault driver may be limited unless the injury meets a legal threshold.

PIP and MedPay coverage

PIP is required in no-fault states and in a few other states, and some others 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 the limit on the policy. 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 in many states it also covers 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 for stacking coverage from several vehicles or policies also vary by state. In some states, a policy held by a relative in the same household may provide UM coverage as well.

Making a UM claim

A UM claim is made to the injured person's own insurer, but in that claim the insurer takes the position of the uninsured driver, so it may dispute fault and the amount of damages. Many policies require prompt notice, and hit-and-run claims may depend on a timely police report. Some states require that the UM insurer be served with a copy of the lawsuit against the at-fault driver. A car crash attorney usually checks these steps early, because missing one can affect the coverage.

Coverage for the car itself

Collision coverage pays for repairs to the policyholder's car regardless of fault, less the deductible. The insurer may then seek repayment from the at-fault driver's insurer through subrogation, and the deductible is sometimes recovered too. Rental reimbursement and gap insurance are optional coverages that can matter after a total loss.

Health plans and repayment

Health insurance, Medicare or Medicaid may pay medical bills first and later claim repayment from a settlement. A motor vehicle accident attorney will usually resolve those liens before any money is distributed. Coverage rules differ by state and by policy, and this article is general information, not legal advice.