Which Insurance Covers Which Losses?
When you are in an accident, and especially a car accident, there seems to be an alphabet soup worth of insurances that are involved—so many that it can get confusing to even figure out which insurance does what. And since we don’t plan to be in an accident when we take out insurance, we often don’t even ask what the insurance we are getting actually covers.
To make things a bit easier, here is a rundown of the different types of insurance that you may encounter, in the course of a typical personal injury suit, and especially, in the course of a car accident case.
Bodily Injury (also sometimes known as “liability”) – This is the type of insurance that we purchase, which pays other people, in the event that you injure them through your own negligence. In some cases, the maximum amount you can be insured for is capped, but with other types of insurance, there is no cap.
Gap Coverage – Gap coverage will cover you in the event that there is a difference between the amount owed on your car loan, and the amount that other insurance pays you.
For example if your vehicle is declared a total loss, and the insurance company thinks your car is worth $15,000, and pays you that, but you owe $20,000 on your car loan, you would actually still owe $5,000 to the finance company. Gap insurance would then pay that difference.
MedPay – Think of Medpay as “extra medical insurance.” For example, if you have a deductible amount with your PIP coverage, Medpay will pay that. Medpay will pay whatever medical expenses you have that exceed your PIP policy (until you can recover those amounts from the negligent party). Like PIP, Medpay is available, regardless of who is at fault.
Personal Injury Protection (often called “no fault” or “PIP” coverage)—this is insurance money that will help you pay for some of your medical bills, and your lost wages, after a car accident. It is called “no fault,” because it is yours, no matter who was responsible for the accident, and even if you were the only vehicle involved in the accident.
Coverage can be limited, and you may have a deductible, but PIP can help you get into medical providers, quickly, to at least begin a treatment program as quickly as possible following an accident, without the need to “prove” anything beforehand.
Property Damage – This is simply money that pays for the damage to your property—specifically, your vehicle. It will also potentially completely replace the vehicle, in the event it is declared to be a total loss. You can purchase almost as much property damage coverage as you want to and can afford.
Uninsured (or Underinsured) Motorist (UM) – UM coverage will pay you if the other, negligent party or driver (1) doesn’t have insurance, (2) doesn’t have enough insurance to fully compensate you for your injuries, or (3) when the negligent driver can’t be found—for example, he or she drive away or left before the police could show up.
Let us help you with the confusing mess of insurances after an accident, to get the coverage that you paid for. Call our Boston personal injury lawyers at The Law Office of Joseph Linnehan, Jr. today at 617-275-4200 for help.
Sources:
mass.gov/info-details/understanding-auto-insurance
mass.gov/doc/bulletin-1990-02-b-1990-2-coordination-of-benefits-pip-medpay-and-health-insuranceself-funded/download
