How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Crash
After a car crash, more than one insurance policy may apply. 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, because the coverage often decides how much of a loss can be paid.
At-fault and no-fault states
Most states require drivers to carry minimum liability insurance, which pays for 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, in which each driver's own PIP coverage pays medical expenses and some lost income regardless of fault. No-fault states may restrict lawsuits against the at-fault driver unless the injury meets a legal threshold.
PIP and MedPay coverage
PIP is required in no-fault states and in a few other states, 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. 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 claim form.
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, and others let a policyholder reject https://blogfreely.net/humanshfak/how-crash-reports-and-dashcam-video-shape-a-car-accident-claim it in writing. Rules for stacking coverage from several vehicles or policies also vary by state. A relative's policy in the same household may also provide UM coverage in some states.
How a UM claim works
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. Some states require that the UM insurer be served with a copy of the lawsuit against the at-fault driver. A car crash attorney will check these requirements early, since a missed step can put coverage at risk.
Vehicle damage coverage
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. Rental reimbursement and gap insurance are optional coverages that can matter after a total loss.
Health plans and repayment
Health insurance, Medicare or Medicaid may pay medical bills first and later claim repayment from a settlement. A motor vehicle accident attorney 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.