If you get into an accident and the other driver doesn’t have enough insurance to cover your injuries, it can be scary to think about medical bills that will soon pile up. Before panicking, you will want to take time to review your own policy and discuss your rights with a personal injury attorney. With expert legal help, you’re more likely to recover the actual amount you’re owed.
Why the At-Fault Driver’s Insurance Is Often Not Enough
Even when someone who causes an accident has insurance, their policy may not cover the total cost of your injuries, rehabilitation expenses, and time you must take off work to recover — particularly if they only have the minimum coverage required in your state.
In New Mexico, drivers must only carry liability insurance of $25,000 for bodily injury to or death of one person, $50,000 for bodily injury to or death of two or more persons, and $10,000 for property damage in any one accident.
Texas law requires drivers to carry injury claim insurance limits of at least $30,000 per person, up to a total of $60,000 per accident, and $25,000 for property damage.
But according to statistics from the National Safety Council (NSC), the average cost of motor vehicle injuries usually exceeds those limits. A serious injury can incur medical bills up to $45,000, while a disabling injury costs $174,000 on average. And that doesn’t include expenses like physical therapy, lost wages, and changes in quality of life. Needless to say, just because an at-fault driver is insured does not mean you will come out of the accident debt-free.
Check if You Have Underinsured/Uninsured Motorist Coverage or MedPay
Finding out that the at-fault driver’s policy limits won’t cover your losses can be frustrating. Fortunately, those limits are often not the only source of compensation available after a serious accident. When another driver doesn’t have enough insurance to cover the cost of your accident, the next step is to review your own policy for Uninsured/Underinsured Motorist coverage.
Underinsured Motorist (UIM) coverage helps when the at-fault driver’s policy limits are too low to cover your full losses, while Uninsured Motorist (UM) coverage applies when you’re hit by a driver who has no insurance or can’t be identified, like in a hit-and-run accident.
New Mexico and Texas require insurance companies to offer UM/UIM coverage to their customers, but customers have the right to accept or decline it. If you have it, it will be on your declarations page and include your limit amounts. Your Underinsured and Uninsured Motorist coverage can help pay for:
- Medical expenses like hospital bills, surgeries, rehabilitation, prescriptions, and long-term care related to your injuries.
- Lost wages if you miss work during recovery or can’t return to your previous job.
- Pain and suffering, which can compensate for the emotional and physical toll of the crash.
- Coverage for other passengers in your vehicle
MedPay (Medical Payments Coverage) is another type of coverage that you may have on your auto policy. It can be used regardless of who was responsible for the accident, and can cover the costs of ambulance visits, deductibles and co-pays, X-rays, surgery, and doctor or hospital visits. If you have been in an underinsured accident, give your health care provider information about your MedPay policy and ask them to bill your insurance company.
There May Be Other Sources of Compensation
In some cases, more than one insurance policy may apply to an accident. Depending on the circumstances, coverage may be available through policies covering other vehicles in the household, an employer’s vehicle, a commercial vehicle involved in the crash, or another party whose negligence contributed to the accident. In certain situations, an injured person may also have the right to pursue compensation directly from the at-fault driver or another responsible party. Identifying all available sources of recovery is one reason many people choose to speak with an attorney after a serious accident.
Will Health Insurance Cover Medical Bills in an Underinsured Accident?
Even when an accident is not your fault, health insurance is the fastest method of paying healthcare providers. It’s best to use health insurance upfront when you are first seeking medical help, because settlements from car insurance companies could take time to receive. Instead of allowing unpaid bills to go into collections while you wait, paying them on time can preserve your credit. Be sure to keep evidence of all medical expenses you have paid so they can be reviewed by the at-fault driver’s insurance company, as well as your own. Depending on your policy and the circumstances of your case, your health insurer may have a right to seek reimbursement from a settlement.
If costs for your injuries are not covered by the underinsured driver, your UIM/UM policy or a MedPay policy, your health insurance should kick in to pay for standard medical treatments, surgeries, and prescriptions. However, you will be responsible for all out-of-pocket costs like co-pays and deductibles, which can add up quickly. Health insurance will also not cover lost wages, pain and suffering, and all of the other expenses you are likely to incur from a serious accident.
In An Accident With an Underinsured Driver, Legal Help is Essential
Particularly in New Mexico, it’s not uncommon to be in an accident where the other driver doesn’t have enough insurance or is uninsured. Insurance companies often dispute the value of serious injury claims, making it important to understand all available sources of compensation before accepting a settlement. That’s why it’s so important to contact Kane Personal Injury if you’ve been in an accident that you did not cause.
From the beginning, we will gather evidence to prove you are not at fault and help you track medical expenses, lost wages, and other costs for which you should be compensated. You should not have to worry about going into debt while you are trying to heal. Our job is to do the work for you, so you can receive the compensation you deserve.
Contact us for a free consultation today.
