How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Accident
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. 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.
Liability coverage and fault
Most states require drivers to carry minimum 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 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, 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
No-fault states require PIP, and a few other states do as well, while some states 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, often called MedPay, is a separate and usually smaller coverage. 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 claim form.
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 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
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, which means it can contest fault and the value of the claim. 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 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 https://caraccidentlawyers.wiki/topics/claims/ 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 vary by state and by policy, and this article is general information, not legal advice.