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What Are The Types Of Insurance Available In Personal Injury Cases?

Oct. 29, 2019

It is a rather short list. It is PIP from motor vehicle accidents or workers’ comp when one is working when the accident occurs even if you’re driving a vehicle. At that point, it would still be workers’ comp and not PIP. The third source would be health insurance.

In more rare situations, it could be something called Med-Pay, which is something that might be available on an insurance policy from the property owner. Finally if there is absolutely no coverage anywhere, sometimes a physician would be willing to accept what’s called a “Letter of Protection” and have their bills paid at the end of the case.

That certainly would be your last choice and it’s very important to use insurance when it’s available to pay for medical bills.

Any There Any Programs Or Loans Available For Injured People Who Don’t Have Insurance?

There are sources that are loans against the outcome of a case but the interest rate is outrageous. You see advertisements on T.V and sometimes people are contacted directly by these companies.

At times, people themselves reach out or go on the internet to search out these companies that will offer loans for any reason, whether it’s for a medical bill or to pay bills. The real problem is that because the courts do not consider them actually loans, they are allowed to get away with these interest rates that no one would intentionally sign for if they really knew what they were.

There have been cases where people have borrowed very small amounts of money, $1,000 for example. At the end of the case, they’d have to pay back $5,000 or $6,000.

Apparently, this is allowed by the courts but it is outrageous and people are discouraged from taking any kind of loan of that sort.

What Is Personal Injury Protection (PIP) In New Jersey? What Are The Advantages And Disadvantages?

Many people have heard of the term “No Fault”. No Fault only means that your medical bills are paid by a certain insurance company regardless of whose fault the accident is. Therefore, if you are the owner of the vehicle and the insurance is obviously in your name, you go to your insurance company to pay your bills even if the accident is someone else’s fault. That’s what PIP is.

If you do not own an automobile and you don’t have a policy then, you next turn to a family member who you live with and has insurance and that company would pay your bills. This would be even if you’re riding in someone else’s vehicle and it was either that person’s fault or someone else’s fault. “No Fault” is a hierarchy of where you would go to get your bills paid.

If you do not live with anyone who owns an automobile and you don’t own one yourself, then you get your PIP from the automobile policy of the vehicle that you’re riding in. If you’re struck by an automobile, the same hierarchy applies; you go to your own insurance first.

If you don’t have that, you go to a family member that you’re residing with and get it there; and if no one in the house owns a vehicle, then you actually must make that application to the state under something that is generally referred to as “Stranger PIP”.

For medical bills, basic PIP benefits are $250,000 in coverage. There is an initial deductible of $250 and then, there is 20 % co-pay on bills for the first $5,000. That means on the first $5,000 in bills, exactly $1,200 is not paid. After your bills exceed the $5,000 mark, they’re payable at 100 per cent all the way up to $250,000 in coverage. It’s excellent protection.

Unfortunately, the law has permitted the insurance companies to sell smaller PIP policies in recent years. However, for these small savings of money that the policy owner is saving, the coverage can be drastically reduced or even nothing for something called a “Dollar a Day” policy.

That’s for people that are generally on disability and receiving Social Security benefits but that coverage only provides emergency room care and no further care after that. Moreover, that policy is also severely restricted in other matters as well.

If one has the basic PIP, it’s that $250,000 in coverage, but if you have health insurance as well, that $1,200 can be resubmitted to your healthcare coverage. Depending upon the coverage itself, most of that $1,200 can then be paid from healthcare.

If you need more information on the Types Of Insurance Available In Personal Injury Cases, call the law office of Attorney David Maran for a free initial consultation at (973) 622-5303 and get the information and legal answers you’re seeking.