How Uninsured Motorist Coverage, PIP and MedPay Work After a Car Crash

Uninsured Motorist, PIP and MedPay Coverage 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, but personal injury protection (PIP), MedPay and uninsured motorist (UM) coverage can matter just as much. A car 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.

At-fault and no-fault states

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 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.

How PIP and MedPay work

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, 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 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 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, and others let a policyholder reject it in writing. Rules for stacking coverage from several vehicles or policies also vary by state. A relative's policy in the same household may also provide UM coverage in some states.

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, which means it can contest fault and the value of the claim. Many policies require prompt notice, 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. A car crash attorney usually checks these steps early, because missing one can affect the coverage.

Vehicle damage coverage

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Collision coverage pays for repairs to the policyholder's car regardless of fault, less 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 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.