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. An auto accident lawyer usually requests the declarations page for every policy that might apply, since 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 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

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 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 crash lawyer will check whether these benefits require prompt notice or a written claim.

When the other driver has little or no insurance

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 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. 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, yet in that claim the insurer stands in the shoes of the uninsured driver, so it may dispute fault and the amount of damages. Policies often require prompt notice of the claim, and hit-and-run claims may depend on 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 accident attorney will check these requirements early, because missing one can affect the coverage.

Repairs and rentals

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, 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

Medicare, Medicaid or a health plan may pay medical bills first https://andresfdrw175.quantlynix.com/posts/questions-to-ask-before-hiring-a-car-accident-lawyer and later seek 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.