Which Insurance Pays After a Car Accident? Uninsured Motorist, PIP and MedPay
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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, 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, since coverage often decides how much of a loss can be paid.
How fault rules shape coverage
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 at-fault states, the injured person generally claims 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. No-fault states may restrict lawsuits against the at-fault driver unless the injury meets a legal threshold.
PIP and MedPay coverage
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 its policy limit. A car accident attorney will check whether these benefits require prompt notice or a written claim.
When the other driver has little or no insurance
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 for stacking coverage from several vehicles or policies also vary by state. 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, 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. Some states require that the UM insurer be served https://caraccidentlawyers.wiki/reference/georgia-deadlines/ with a copy of the lawsuit against the at-fault driver. A car accident attorney will check these requirements early, because missing one can affect the coverage.
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, and the deductible is sometimes recovered too. 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 will usually resolve those liens before any money is distributed. Coverage rules differ by state and by policy, and this article is general information, not legal advice.