How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Crash
More than one insurance policy can apply after a car crash. 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 will usually ask for the declarations page of every policy that might apply, because the 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. State minimum limits can be low compared with the cost https://hectoruhrd426.silverstonebrief.com/posts/who-can-be-held-responsible-for-an-auto-accident 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, 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
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. It pays medical expenses for the policyholder and passengers regardless of fault, up to its policy limit. 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 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 fall short of the loss. Some states require UM coverage, and others let a policyholder reject it 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.
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, which means it can contest fault and the value of the claim. Many policies require prompt notice, 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 accident attorney usually checks these steps early, because missing one can affect the coverage.
Repairs and rentals
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
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 differ by state and by policy, and this article is general information, not legal advice.