Does car insurance cover the cost of medical bills?
More often than not, you will be responsible for paying for your medical bills incurred as a result of a car accident. That can vary based on the state you live in. If you live in a ‘No Fault’ state, your car insurance will cover some or all of your bills, regardless of who was at fault for the accident, and up to the limits of your no-fault coverage.
Additional Reading: Did you have an accident during winter?
If you have health insurance, they will pay the bills after the exceeded limit. At Mahotra & Assoc, we’re dedicated to making sure that you’re covered for any instance.
Who Pays the Medical Bills After an Accident?
If you live in a ‘No Fault’ state, your car insurance will cover some or all of your bills, regardless of who was at fault for the accident, and up to the limits of your no-fault coverage. If you have health insurance, they will pay the bills after the exceeded limit.
However, if you don’t live in a no-fault state, you will be responsible for paying for any injuries sustained. Many residents have medical payment coverage which will cover the bills of drivers/passengers involved in a car accident, up to the ‘med pay’ policy limits, which are generally less than $10,000. Not all residents have this coverage as it is not required.
What are Medical Payments Coverage vs. Bodily Injury Coverage?
Bodily injury coverage applies to the drivers/passengers of other vehicles involved in an accident, as well as any other pedestrians or bystanders injured in the accident when you are responsible. Medical payments coverage pays for medical expenses incurred by you or passengers in your vehicle regardless of who is at fault for the accident.
Does Full Coverage Cover Medical Bills?
Full coverage auto insurance includes all parts of liability coverage, but it also covers your vehicle and medical costs if you’re at fault.
Can You Sue for Medical Bills if You Have Insurance?
While you can sue for medical bills if you have insurance, there are two main issues. The first being subrogation clauses. Many insurance companies will have these clauses saying the insurance company will pay for any medical care that its customers incur as a result of an accident.
However, if the customer makes a lawsuit against a third-party, then the customer has to use the proceeds to reimburse the insurance company back the amount the insurance company paid.
The second issue is the paid or incurred rule. Many insurance companies have partnerships with hospitals to reduce prices of procedures. If you choose to sue, recovery of health care expenses incurred is limited to the amount actually paid by or on behalf of the claimant.
Does Insurance Pay for a New Car After a Wreck?
If you were in a car accident and your car was damaged, your first step is to file a claim with your insurance company. If your car is totaled, your insurance company will pay you the cash value of your totaled car, if you have the right coverage. Any proceeds you are entitled to will be sent to your lien holder first.
This check will pay off/reduce your car loan on the vehicle. If there is any money left over, you will be sent a check. If you don’t owe any money or if the proceeds were enough to cover your loan value, you can use the remainder towards the purchase of your new car.
Get a Quote for Auto Insurance
This winter, make sure you have adequate car insurance to cover damage to your vehicle and others, as well as medical bills in the event you are involved in an accident. If you need to get a quote for auto insurance or have any questions, contact Malhotra & Assoc. Insurance today.
For more information on car insurance in your state call: 1-800-945-1410
Disclaimer: This blog post is meant for general informational purposes only and may not reflect your specific policy.