How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Accident
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, but personal injury protection (PIP), MedPay and uninsured motorist (UM) coverage can matter just as much. An auto 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.
At-fault and no-fault states
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. In those states, a lawsuit against the at-fault driver may be limited unless the injury meets a legal threshold.
PIP and MedPay
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 may cover medical bills, a share of lost wages and some household expenses. Medical payments coverage, usually called MedPay, is separate and generally smaller. It pays medical expenses for the policyholder and passengers regardless of fault, up to the limit on the policy. An auto accident attorney will check whether these benefits require prompt notice or a claim form.
Coverage for uninsured and underinsured drivers
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
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. 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 with a copy of the lawsuit against the at-fault driver. An auto accident lawyer will check these requirements early, since a missed step can put coverage at risk.
Repairs and rentals
Collision coverage pays to repair or replace the policyholder's car regardless of fault, minus the deductible. The insurer can 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. 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.