Articles Posted in Insurance

What is medical payments coverage on my automobile insurance policy?

Medical payments coverage, also known as "med pay" coverage, will pay medical bills incurred by you or people in the vehicle in the event that you or the others are injured in a vehicle accident. The money is paid for bills regardless of who caused the accident.

Although many people have health insurance that will also pay medical bills, the med pay coverage can be used to meet deductibles and pay bills not covered by insurance.

Liability insurance is insurance that protects you from loss in the event you are alleged to have negligently caused harm or damage to another  or are determined to have negligently caused harm or damage to another.

Liability insurance offers two important components.  First, liability insurance pays for a lawyer to represent you in the event you get sued for negligently causing someone harm or damage.  This is known as the "duty to defend."  Second, liability insurance pays any judgment entered against you for negligently causing harm or damage to someone else.  This is known as the "duty to indemnify."  The amount the insurance company will pay is capped at the amount of liability insurance you have.  

There is a liability insurance component in almost every motor vehicle insurance policy.  There is also a liability insurance component in your homeowner’s insurance policy.  If you run a business, you may have (and should have) a "general liability" insurance policy that protects you for negligent acts and omissions by you or your employees as part of your business operations.

I have a disability insurance policy through my job.  I am disabled but the disability insurance company still says I have to submit and claim and go through all the paperwork.  The company says it is up to me whether or not I get a lawyer.  Do I need a lawyer?

I strongly recommend that you have the help of a lawyer.  It sounds like your policy is going to be covered by a special federal law and, if your policy has language in it that is often found in such policies, a federal court that reviews any  denial of your claim will be largely limited to looking only at the same evidence the insurance company looked at when it denied your claim.  Thus, it is extremely important that your file with the insurance company contain all of the relevant material that can be used to support your claim,  An experienced lawyer knows what material to submit in support of your claim and how to make the most persuasive argument that can be made on your behalf.

Also, depending on the language of your policy, it may be very difficult for a federal court to reverse the insurance company’s decision to deny you benefits.  If the policy so states, the judge can only reverse a decision to deny benefits if the judge finds that the insurance company "abused its discretion"  in making its decision.

Do I have to repay my automobile insurance company if they pay my medical bills from my medical payments coverage and I recover a settlement from the at-fault driver? 

Probably.  Most automobile insurance policies that have medical payments coverage require that you re-pay them if you make a recovery from the at-fault driver.  Under certain circumstances you can force the company to reduce the amount of the re-payment.  Your lawyer can help you with this issue.

I was hurt in a car accident.  I do not have health insurance.  I heard that my auto insurer might pay some of my medical bills under what is known as "medical payments coverage."   What is that?

Many car insurance policies have medical payments coverage.  This insurance coverage pays your medical bills if you are involved in an incident covered under the terms of the policy.  There is a limit on the coverage provided, often $10,000 but it may be much higher.  

If you have this coverage you should definitely use it to get the medical care you need without paying the medical bills out-of-pocket.

I have heard about people seeking "policy limits" in car wreck cases.    What does that mean?

"Policy limits" refers to the sum total of liability insurance policy dollars that are applicable to a given case.

So, if a person has $300,000 of insurance on their car and they cause a wreck that injures someone else, a policy limits demand by the injured party is a demand that the insurance company pay $300,000 to settle the case.