Uninsured Motorist, PIP and MedPay Coverage After a Car Crash
After a car crash, more than one insurance policy may apply. People usually think first of the at-fault driver's liability coverage, 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.
How fault rules shape coverage
Most states require drivers to carry a minimum amount of 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 https://zanderqhlm636.northstarcolumn.com/posts/who-can-be-held-responsible-for-an-auto-accident 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. In those states, a lawsuit against the at-fault driver may be limited 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, 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 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, while others allow it to be rejected 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.
Making a UM claim
A UM claim is made to the injured person's own insurer, 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. In some states, the UM insurer must be served with a copy of any lawsuit against the at-fault driver. A car accident attorney usually checks these steps early, because missing one can affect the coverage.
Coverage for the car itself
Collision coverage pays to repair or replace the policyholder's car regardless of fault, minus 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 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 will usually resolve those liens before any money is distributed. Coverage rules vary by state and by policy, and this is general information rather than legal advice.