How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Accident
After a car crash, more than one insurance policy may apply. People usually think https://trevorlasc048.zenbloomer.com/posts/how-long-an-auto-accident-claim-takes-stage-by-stage 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 usually requests the declarations page for 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 covers 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, 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, 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. The coverage pays medical expenses for the policyholder and passengers no matter who caused the crash, 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 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
The UM claim goes to the injured person's own insurance company, 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. Some states require that the UM insurer be served with a copy of the lawsuit against the at-fault driver. An auto accident lawyer will check these requirements early, since a missed step can put coverage at risk.
Vehicle damage coverage
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, which can sometimes recover the deductible as well. Gap insurance and rental reimbursement are optional coverages that can matter after a total loss.
Health insurance and liens
Medicare, Medicaid or a health plan may pay medical bills first and later seek repayment from a settlement. A car 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.