We are continuing to focus our articles this week on coverages which can be used in auto insurance policies which can help in the event you are in an automible collision. For our non Maryland readers, there was an article posted in our Maryland Injury Victims blog regarding PIP coverage in Maryland.
In short, PIP in Maryland can be used to assist an auto collision victim pay medical bills, lost wages, and other houshold expenses. The lost wages paid can be up to 85% of lost wages, with payments to be paid out only if reasonable. In addition, Maryland PIP does not have to be paid back to your insurance provider out of your negotiated settlemment or jury verdict.
This article however will focus on a coverage called MedPay, or medical payments coverage. Since each state has different types of coverages available, please contact your legal professional or auto insurance agent for more information on this type of coverage, assuming it is available in your state. If you are not a Maryland auto policy holder, maybe this article can help you formulate the questions you need to ask you legal professional or auto insurance agent.
Unlike PIP in Maryland, MedPay is NOT governed by the Maryland Code. As a result, you must follow the terms outlined in your specific policy to determine what triggers MedPay and whether your insurance company is entitled reimbursement for payment.
In some policies, MedPay will kick in to pay your medical bills after all of your PIP payments have been exausted. For example, lets say you have $2,500 worth of PIP coverage and you have $5,000 worth of MedPay coverage and your policy states that you cannot use your MedPay until all PIP payments are used up. Also, your policy is one which does not require MedPay reimbursement.
Add to the above senerio that you have $3,000 worth of medical bills. You could use all of your PIP ($2,500) and then dip into your MedPay ($500) to cover all of your medical bills. Without the MedPay you would be responsible for the $500 medical bills balance, which would have to come out of your settlement or jury verdict in all likelyhood.
Again, for our non Maryland readers, hopefully you can use this article to eduacate yourself on the types of policies in play in your jurisdiction. As for everyone, remember that this article is not a substitution for legal advice. Only your attorney can advise you as to the specifics of your situation.
If you have not already done so, you can still join our Legal Insider’s Circle in the column to the right. You will be alerted as soon as we post new articles to this blog. In addition, Maryland residents will receive a free copy of our latest CD, “Choosing The Right Injury Attorney.” Joining out Legal Insider’s Circle does not create an attorney client relationship.
Thanks for reading and make it a great Thursday!
Boston Law Group, LLC
I think for sure speaking with the insurance company and legal professionals can clear up a lot of misunderstandings.
It can. But a lot of people do not think that they need to…until it is too late!