In the event of a car accident, may you use your health insurance?

After an accident, several types of insurance can cover the expense of medical care: Medical expenses, health insurance, and personal injury protection (PIP)

If your motor insurance policy includes PIP or Medical Payments, you’ll usually utilize those first before contacting your health insurance provider. Drivers without PIP coverage can still use their health insurance to pay for injuries sustained in a vehicle accident, but there are certain benefits to including PIP or Medical Payments coverage in your car insurance policy.

In the event of a car accident, should I utilize health insurance or PIP?

If you need medical attention as a result of a vehicle accident, you should first exhaust your PIP and Medical Payments auto insurance coverage before filing a claim with your health insurance.

This is due to two factors: The first is that unless you’ve expressly requested one, PIP and Medical Payments coverage normally do not have a deductible – a financial amount you must pay before insurance “kicks in.” However, most health insurance plans include a deductible that must be paid out of cash. This implies you may not have to pay anything if you receive medical care as a result of a car accident and the cost of treatment does not exceed your PIP/Medical Payments coverage limits. If you send the bill to your health insurance carrier, you’ll almost certainly be charged a deductible, as well as extra expenses.

The second reason is that most health insurance policies have a language known as a “subrogation clause.” This paragraph indicates that if you owe your health insurance company money for reimbursement of medical bills, your health insurance company is entitled to it to reclaim its costs. PIP coverage, as well as money from a liability suit, are both examples of this. As a result, save a step by utilizing your PIP/Medical Payments limit first.

There are several exceptions in some states.

In a few no-fault jurisdictions, you can choose to restrict your PIP coverage and rely on your health insurance following a vehicle accident to save money on auto insurance. In New Jersey, drivers can choose to have their health insurance cover their medical bills as their main provider. This implies that your health insurance will pay for medical expenses first, and PIP medical coverage will kick in only if your care costs exceed your health plan’s limitations.

In Michigan, where unrestricted PIP coverage adds to very expensive vehicle insurance costs, you can minimize your prices by coordinating your health and motor insurance plans. If you select this option, your Michigan health insurance will cover your hospital and doctor fees, while PIP will cover lost income and rehabilitation costs.

What is the difference between PIP and Medical Payments?

After a car accident, personal injury protection (PIP) is a type of auto insurance that reimburses you for medical bills and some other expenditures, such as lost income. Unlike other forms of auto insurance, you don’t have to show the other motorist is at fault, and you’ll generally get a quick response after filing a claim.

In 12 states, PIP is required, whereas in seven others, it is optional.

No-fault states are those that necessitate PIP. PIP limitations range from $10,000 to $100,000, and in Michigan, they are limitless. PIP may only pay a portion of your medical expenditures – for example, in Florida, it covers 80% of your medical expenses. Furthermore, in return for cheaper auto insurance premiums, several jurisdictions enable you to have a PIP deductible.

Medical Payments coverage, often known as Medical Payments, is very similar to Personal Injury Protection (PIP). Medical and funeral costs are usually covered, but not lost earnings or living expenditures. It’s occasionally marketed as a cheaper alternative to PIP coverage or as an add-on to PIP coverage. In three states, medical payments are required. If both PIP and Medical Payments are optional coverages in your state, you may only be allowed to pick one or the other.

If you don’t have PIP or Medical Payments, can you utilize health insurance?

If your vehicle insurance does not include PIP or Medical Payments coverage, you can utilize your health insurance to cover any medical expenditures incurred as a consequence of a car accident. You can also file a claim against the other driver’s insurance to cover medical bills if you live in a tort state. However, be aware that determining who was at blame in an accident can take a long time, and you are not promised a payment.

It’s essential to send your health insurance provider copies of your automobile accident medical bills as soon as you get them. If you subsequently decide to make a responsibility claim to pay medical expenditures, you may be required to compensate your health insurance provider for any expenses they have spent through a process known as subrogation. Subrogation is a condition in most health insurance contracts that allows your insurer to recuperate its losses if you obtain money for medical bills, such as through a liability claim or a lawsuit. Even if you do not file a liability insurance claim, your health insurance provider has the opportunity to do so on your behalf under subrogation.

If you have health insurance, should you acquire PIP or Medical Payments?

While health insurance, personal injury protection (PIP), and medical payments (MedPay) all assist you in paying for medical expenditures following a vehicle accident, they each serve a distinct function. Even if it isn’t required by state law, you may want to consider adding PIP or Medical Payments to your auto insurance coverages.

For one thing, PIP and Medical Payments can help you meet your health insurance deductible. You can spend the rest of your Medical Payments allocation to pay your health insurance deductible if you anticipate needing to use your health insurance, such as if your PIP or Medical Payments allowances run out. PIP and Medical Payments will also pay funeral costs, which are not covered by health insurance. While death may be difficult to think about, funerals are costly, which can add financial hardship to an already stressful time for your family, In the case of an accident, having PIP or Medical Payments coverage may be advantageous.

Then, unlike Medical Payments, PIP normally compensates lost income as a result of an injury. If you break your leg in a vehicle accident and work in construction, for example, you may be unable to work. PIP will reimburse you the income you would have earned if you hadn’t been disabled, up to a set amount, depending on your policy. Standard PIP coverage in New York state, for example, pays out 80% of your wages, up to $2,000 each month, with a maximum payout of $50,000. This is not a feature of the health insurance policy. It’s worth mentioning, though, that if you have disability insurance, both short- and long-term disability coverage would protect you in this case.

Finally, knowing you have a secondary source of coverage to pay for a potentially costly injury provides a sense of security. After a vehicle accident, medical expenses may quickly mount, and having an additional $50,000 in PIP or Medical Payments coverage can help. If your health insurance provider dismisses your claim, you’ll have a backup plan.