Which Insurance Pays After a Car Accident? Uninsured Motorist, PIP and MedPay

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 attorney 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 https://andygjfq850.silverstonebrief.com/posts/what-to-expect-from-the-insurance-adjuster-after-a-car-crash which each driver's own PIP coverage pays medical expenses and some lost income regardless of fault. In those states, a lawsuit against the at-fault driver may be limited unless the injury meets a legal threshold.

PIP and MedPay coverage

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. 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 crash lawyer will check whether these benefits require prompt notice or a claim form.

Coverage for uninsured and underinsured drivers

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, and others let a policyholder reject 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.

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, so it may dispute fault and the amount of damages. Many policies require prompt notice, and hit-and-run claims may depend on a timely police report. In some states, the UM insurer must be served with a copy of any lawsuit against the at-fault driver. An auto accident lawyer usually checks these steps 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 may then seek repayment from the at-fault driver's insurer through subrogation, and the deductible is sometimes recovered too. 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. An automobile accident lawyer will usually resolve those liens before any money is distributed. Coverage rules differ by state and by policy, and this is general information rather than legal advice.