Recently, one of our clients (injured in a motor vehicle collision) realized that she’d made a costly mistake when choosing her own insurance coverage. Here is the mistake: She chose to add Medical Payments Coverage (MedPay) to her auto policy instead of Personal Injury Protection coverage (PIP) when she got her insurance.
Adding MedPay coverage instead of PIP is a mistake because MedPay, which pays medical bills after an accident, has to be paid back to your insurance company if you settle a personal injury claim with the other driver. On the other hand, PIP coverage, which can also be used to pay medical bills, DOES NOT have to be paid back if you settle a claim with the at fault driver in the accident.
After the car accident, our client needed medical care and bills began to arrive almost immiately adding up to $10,000. Our client was very relieved that MedPay coverage was available to cover the costs since the claims process means any settlement is not immediately available. However, when our client eventually settled her claim with the other driver (who was at fault), she had to repay the $10,000.00 MedPay coverage expended to cover her treatment. If she had PIP coverage instead of MedPay, that $10,000.00 would have stayed right where it belonged…in her pocket!
1. PIP can be used to pay both medical bills, and up to 80% of your lost wages, MedPay can’t be used for lost wages.
2. PIP doesn’t have to be paid back if you settle a claim with the other driver, but MedPay does.
If you or someone you love has been injured in a car crash, get in touch with an experienced Texas personal injury attorney at Hudson Law. We can help you navigate the process to defend your legal rights and protect your financial and medical interests. We put Personal back into Personal Injury Law.