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, since 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 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 an at-fault state, the injured person usually makes a claim 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. 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 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. An auto accident attorney will check whether these benefits require prompt notice or a written claim.
Uninsured and underinsured motorist coverage
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 fall short of 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.
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. Policies often require prompt notice https://penzu.com/p/75fc66a745672133 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 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. A motor vehicle accident attorney 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.
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