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Uninsured Motorist, PIP and MedPay Coverage 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, since coverage often decides how much of a loss can be paid.
How fault rules shape coverage
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 at-fault states, the injured person generally claims 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. 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 can pay medical bills, part of lost wages and certain 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.
Coverage for uninsured and underinsured drivers
Uninsured motorist (UM) coverage applies when the at-fault driver 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 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 https://mariormwb132.ironwoodscope.com/posts/choosing-an-auto-accident-attorney-questions-to-ask driver, which means it can contest fault and the value of the claim. 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. An auto accident lawyer will check these requirements early, because missing one can affect the coverage.
Coverage for the car itself
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, 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
Health insurance, Medicare or Medicaid may pay medical bills first and later claim repayment from a settlement. An automobile accident lawyer usually resolves these liens before funds are distributed. Coverage rules vary by state and by policy, and this is general information rather than legal advice.