Will Car Insurance Cover Medical Bills?

Car insurance policies provide several different types of coverage that will pay medical bills.  The two main sources of coverage are 1) specific medical payment coverage in the insurance policy for the car in which the injured person was occupying; and 2) the liability coverage for person who was liable for the accident.

In most states, a car owner as part of his car insurance coverage can buy insurance that will pay the medical bills for the treatment of injuries suffered by an occupant of the insured car in a wreck.  This coverage is often called “MedPay.”  This insurance is not mandatory.  And the per person/per accident coverage limits can range from as low as $2,000 to as high as $50,000 or even greater.  MedPay will pay those medical bills regardless of who was at fault for the accident.  MedPay is what is known as primary coverage, which means that even if Medicare, Medicaid, or group health insurance initially paid the bills, MedPay must still pay the bills, while the insurance company that initially paid the bills will be reimbursed.

If the person was injured in a car wreck as a result of the negligence of another, then the injured person has an additional source of insurance coverage to pay his medical bills.  This insurance is called liability coverage and all automobiles are required to have it.  Each state requires a minimum dollar amount of coverage.  In Virginia, the minimum limits of coverage are $25,000 per person/per accident.   This insurance pays an amount to the injured person equal to the damage caused by a negligent driver of the automobile to the injured person, including any medical bills.  This is true even if the bills have already been paid by MedPay or other insurance.   The injured person will receive this amount if and when he receives a judgment against the negligent driver, or the negligent driver’s car insurance company reaches a settlement of the injury person’s liability claim with the injured person.

In most states, if the injured person’s medical bills were paid by MedPay (or other insurance) and the injured person then received a settlement or judgment against the driver who negligently injured him that included a payment equal to the total of the medical bills, the injured person is required to reimburse the MedPay insurance carrier out of those proceeds for the amount of the MedPay payment.  This right of reimbursement is known as the right of subrogation, as skilled Abingdon Virginia car accident lawyers trust.  However, Virginia and some other states have enacted what are called anti-subrogation laws.  Under those laws, the MedPay insurance company has no right of reimbursement.

Thanks to our friends from The Law Offices of Mark T. Hurt for their insight into car accident cases.