How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Crash
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. A car 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 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. 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.
How PIP and MedPay work
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, often called MedPay, is a separate and usually smaller coverage. It pays medical expenses for the policyholder and passengers regardless of fault, up to the limit on the policy. 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 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 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, 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 a hit-and-run claim may require a timely police report. In some states, the UM insurer https://codyntao852.oakmontscope.com/posts/what-a-car-accident-lawyer-looks-at-after-a-rear-end-or-t-bone-crash-2 must be served with a copy of any lawsuit against the at-fault driver. A car accident attorney will check these requirements early, since a missed step can put coverage at risk.
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. Gap insurance and rental reimbursement 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 and later seek repayment from a settlement. A car accident lawyer will usually resolve those liens before any money is distributed. Coverage rules vary by state and by policy, and this is general information rather than legal advice.