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, yet personal injury protection (PIP), MedPay and uninsured motorist (UM) coverage can matter as much. A car accident attorney 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 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 at-fault states, the injured person generally claims against the at-fault driver's insurer. Some states use 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
PIP is required in no-fault states and in a few other states, while some states offer it as an option. Depending on https://paxtonkhtw371.capitaljays.com/posts/police-reports-dashcam-video-and-car-accident-evidence-3 the policy, it can pay medical bills, part of lost wages and certain 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. A car crash lawyer will check whether these benefits require prompt notice or a written claim.
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 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. In some states, a policy held by a relative in the same household may provide UM coverage as well.
Making a UM claim
The UM claim goes to the injured person's own insurance company, but in that claim the insurer takes the position 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. A car accident attorney will check these requirements early, because missing one can affect the coverage.
Vehicle damage coverage
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, and the deductible is sometimes recovered too. Gap insurance and rental reimbursement 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.