Who Pays Your Bills After a Car Crash?
Who pays your medical bills after a car crash? Abeyta Nelson attorneys can help.
If you or someone in your vehicle is injured in a crash, who pays the medical bills? It’s one of the most common questions new clients ask us, and there’s a lot of misunderstanding regarding the answer to this question.
Many people assume it’s the at-fault driver’s insurance company that must pay for their bills. That’s a reasonable assumption. In a perfect world, that would be the case. Unfortunately, that’s not the way it works.
If you have Personal Injury Protection (PIP) coverage under your own auto insurance policy, that’s who pays your bills up to the dollar amount limit of your coverage. This is a no-fault coverage meaning that it pays no matter who caused the accident. You can even use the vehicle owner’s PIP if you were riding in someone else’s vehicle when the collision happened.
PIP coverage, which Abeyta Nelson attorneys strongly recommend you have, is the first in line to pay. You can buy PIP coverage in the amount of $10,000, the lowest amount sold in Washington, or up to $100,000. Given the high cost of medical care, we recommend at least $35,000. A higher amount is even better since it pays for more bills.
Unlike medical insurance, PIP coverage has no deductible and no co-pays. It provides for payment of medical bills for you, family members, and anyone else in your vehicle. In addition to paying for medical bills, PIP also pays for lost wages if you’re unable to work and have a medical release from your doctor, and household expenses such as housekeeping, lawn work, transportation, and other in-home services you’re unable to perform.
If you don’t have PIP coverage, or if PIP pays out its full dollar limit, then your medical insurance pays next. Of course, with this kind of insurance there is almost always a deductible and co-pays. For those with Medicare or a Medicare Advantage plan, that’s also the next to pay after PIP is exhausted or there is no medical insurance.
If the person injured has no PIP and no group medical or Medicare/Medicare Advantage coverage, then Medicaid plans issued through the state may pay for treatment. Be advised, however, that medical providers don’t have to accept Medicaid payment.
If medical bills are paid by any of the above-listed sources, they have a right to be repaid out of any settlement you receive from the at-fault driver’s insurance company. This means that the at-fault driver’s insurance company will eventually have to pay the bills you incur caused by their driver, but not until a final settlement is negotiated.
There’s no way under the law to force the at-fault driver’s insurance company to pay for your treatment before a final settlement is reached. That’s why it’s critical for you to have PIP coverage under your own auto insurance with group medical insurance or Medicare as a backup if your bills exceed the amount of your PIP limits.
Some people ask why they have to repay their own insurance company since they paid for that coverage. The reason is that since your bills are included in the final settlement, you can’t “double dip” by having them paid by your insurance and then collecting them from the at-fault driver’s insurance.
One piece of good news is that Abeyta Nelson Injury Law can get the amount you have to repay significantly reduced and sometimes even eliminated. If you or a loved one is hurt in an accident, call us to learn more.