Auto Insurance And Hospital Bills: What's Covered?

If you've been in a car accident, you may be wondering who will cover your medical bills. The answer depends on the type and amount of auto insurance coverage you have. There are two main types of auto insurance coverage: liability-only and full coverage. Liability auto insurance typically includes property damage and bodily injury components. If you have full coverage, it encompasses liability coverage and also covers your vehicle and medical costs if you're at fault.

If you're at fault in an accident and have liability coverage, your insurance can pay for medical costs related to injuries, loss of work income, legal fees, and funeral expenses for the other driver and their passengers. However, it won't cover damage to your vehicle or your own medical expenses. On the other hand, if the other driver is at fault, their liability coverage would typically cover your medical bills up to their policy maximums.

Additionally, there are optional coverages you can add to your auto insurance policy, such as MedPay and Personal Injury Protection (PIP), which can provide extra funds for medical bills regardless of who is at fault. These coverages can be especially useful if the at-fault driver doesn't have enough insurance or is uninsured.

MedPay and PIP: optional vs mandatory

MedPay and PIP are two types of auto insurance coverage that pay for medical expenses following an accident. While they share some similarities, there are also important differences to note when considering which option is best for you.

MedPay (Medical Payments Coverage)

MedPay is an optional supplement to car insurance policies that covers medical expenses resulting from an accident, regardless of who is at fault. It is available in all but two states, where it is mandatory. MedPay covers the insured, other drivers listed on the policy, members of the insured's household, and passengers. It can also cover public bus riders injured in an accident. Depending on your state laws and insurance company, MedPay can function as primary medical coverage after an accident, or it can supplement your existing health insurance coverage. MedPay typically has a low payout limit, ranging from $2,000 to $10,000. It does not cover lost wages or essential services for unemployed individuals.

PIP (Personal Injury Protection)

PIP is a type of no-fault insurance that covers medical expenses, lost wages, and other costs related to an auto accident, regardless of who is at fault. PIP is mandatory in 12 no-fault states and is optional in seven other states. PIP covers the policyholder, family members living in the household, any driver with permission to drive the covered vehicle, and passengers. It pays reasonable accident-related medical and funeral expenses within three years of the accident and covers 80% of lost wages. If the injured person is unemployed, PIP pays for essential services such as child and lawn care. PIP coverage limits are typically higher than MedPay, and it may include funeral costs.

MedPay vs. PIP: Optional vs. Mandatory

MedPay is generally optional across the United States, with the exception of two states where it is mandatory. On the other hand, PIP is mandatory in 12 no-fault states and is optional in seven other states. When deciding between MedPay and PIP, it is important to consider your state's requirements, your personal budget, risk tolerance, and individual needs. Consulting with a professional legal advisor can aid in understanding the implications of these coverage options and making an informed decision.

Bodily injury liability coverage

In addition to medical expenses, bodily injury liability coverage can also help pay for lost wages if the injured party is unable to work due to their injuries. It can also cover funeral costs in the unfortunate event that an accident results in a fatality.

While bodily injury liability coverage is typically required by states, the minimum requirements may not be sufficient for all drivers. When shopping for insurance, it is important to consider your individual needs and choose a coverage amount that provides adequate protection.

Uninsured motorist coverage

Depending on your state's regulations, uninsured/underinsured motorist insurance may be separate or combined, and it can consist of up to four coverages:

• Uninsured motorist bodily injury (UMBI): This coverage pays for medical bills for both you and your passengers if you're hit by an uninsured driver.
• Uninsured motorist property damage (UMPD): This coverage pays for damage to your vehicle caused by an uninsured driver.
• Underinsured motorist bodily injury (UIMBI): This coverage pays for medical bills for you and your passengers if the at-fault driver doesn't have enough insurance.
• Underinsured motorist property damage (UIMPD): This coverage pays for damage to your vehicle if the at-fault driver's insurance isn't sufficient.

It's important to note that some states may require a deductible for UMPD/UIMPD, but UMBI/UIMBI generally doesn't include a deductible. Additionally, uninsured motorist coverage also applies in hit-and-run accidents, although in some states, UMPD won't cover these incidents.

When deciding on the amount of uninsured motorist coverage to purchase, consider choosing limits that match your liability coverage. For example, if your liability coverage is $50,000 per person and $100,000 per accident, you may want to select the same limits for your UMBI and UIMBI coverage.

Full coverage auto insurance

The term "full coverage auto insurance" is misleading as there is no standard definition of it and no single policy that delivers 100% coverage. When insurance agents and lenders refer to full coverage, they usually mean a combination of liability, comprehensive, and collision coverage, plus any other coverages required by your state.

Liability coverage is mandatory in almost all states and covers damages or injuries you cause to another vehicle or person, up to a certain limit. Comprehensive and collision coverage, on the other hand, are optional and protect your vehicle from damage caused by accidents, vandalism, theft, weather events, and collisions with animals.

In addition to the above, there are other types of auto insurance coverage that can help pay for medical bills in the event of an accident. Medical Payments Coverage (MPC) or MedPay covers medical bills for you and your passengers, regardless of who caused the accident. Personal Injury Protection (PIP) is also known as no-fault insurance and covers medical costs and lost wages resulting from an accident, regardless of fault. Bodily Injury Coverage, on the other hand, covers medical expenses when you are found liable for causing an accident.

When it comes to protecting yourself and your vehicle, it's important to carefully consider your needs and choose the right combination of coverages. While full coverage auto insurance may provide comprehensive protection, it's important to remember that no single policy can offer complete coverage in all situations.

Health insurance: primary vs secondary

Car insurance can help pay for medical bills in the event of an accident. There are several types of car insurance coverage that can contribute to paying your medical bills, including liability coverage, MedPay, uninsured motorist coverage, and personal injury protection (PIP).

Liability coverage financially protects you if you cause an accident by paying for the other driver's medical bills, up to your coverage limit. Bodily injury liability coverage is a type of liability coverage that is required by law in almost every state. It pays for the medical expenses, pain and suffering, funeral costs, and other expenses incurred by the driver and passengers in the other vehicle.

MedPay is an optional coverage that provides extra funds towards medical bills for you and your passengers, regardless of who is at fault. It can also help cover health insurance costs, including deductibles and copays, and may cover treatments excluded by health insurance.

Uninsured motorist coverage is a policy add-on that helps pay for damages caused by a driver without insurance or with insufficient insurance.

Personal injury protection (PIP) is a type of coverage that pays for medical and related expenses for you and your passengers, regardless of fault. In some states, it is mandatory, while in others, it is optional or unavailable.

Now, let's discuss the difference between primary and secondary health insurance.

When an individual has coverage under two health plans, one plan is designated as the primary health insurance, and the other becomes the secondary insurance. The primary insurance is responsible for paying first on any claims, and the secondary insurance comes into play if the primary insurance policy cannot cover the entire claim. The secondary insurance will then pay for any remaining costs that are eligible for coverage under its health plan. This coordination between the two insurance providers is called the "coordination of benefits", ensuring that each plan pays its fair share without overlapping or exceeding 100% of the total medical costs.

Determining which insurance is primary and which is secondary depends on the individual's circumstances. For example, for married couples, the wife's employer-provided health plan is usually the primary insurer, while the husband's plan covering his wife is the secondary insurer. In the case of underage children whose parents both have insurance, the parent whose birthday comes first in a year has the primary insurance plan, and the other parent's plan is secondary. This is known as the "birthday rule".

In summary, car insurance can help cover medical expenses resulting from accidents through various types of coverage, including liability, MedPay, uninsured motorist protection, and PIP. When it comes to health insurance, having primary and secondary coverage means that the primary insurance pays first, and the secondary insurance covers any remaining eligible costs. The coordination between these two types of coverage ensures that individuals receive the maximum coverage while avoiding duplicate payments.

Frequently asked questions