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 usually requests the declarations page for every policy that might apply, since coverage often decides how much of a loss can be paid.

At-fault and no-fault states

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 an at-fault state, the injured person usually makes a claim against the at-fault driver's insurer. A smaller group of states uses a no-fault system, where each driver's own PIP coverage pays medical expenses and some lost income regardless of who caused the crash. In those states, a lawsuit against the at-fault driver may be limited 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 can pay medical bills, part of lost wages and certain household expenses. Medical payments coverage, usually called MedPay, is separate and generally smaller. It pays medical expenses for the policyholder and passengers regardless of fault, 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 applies when the at-fault driver 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 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, which means it can contest fault and the value of the claim. Policies often require prompt notice of the claim, 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 usually checks these steps early, since a missed step can put coverage at risk.

Coverage for the car itself

Collision coverage pays for repairs to the policyholder's car regardless of fault, less the deductible. The insurer can then seek repayment from the at-fault driver's insurer through subrogation, which can sometimes recover the deductible as well. Gap insurance and rental reimbursement are optional coverages that can matter after a total loss.

Health plans and repayment

Medicare, https://emilianoxlld964.westhavenscope.com/posts/which-insurance-pays-after-a-car-accident-uninsured-motorist-pip-and-medpay Medicaid or a health plan may pay medical bills first and later seek 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.