Accident Compensation
Who Pays What After a Car Accident in Texas?
It’s hard to overstate the number of financial stresses that can arise after a car accident. You’ve got injuries to treat, and you’ve got a car to repair. If the accident involved a loved one, you may have a wrongful death claim to pursue.
If the other driver was at fault you may already be aware that Texas law states the other driver’s insurance company must pay for your damages. You may also wonder what that includes. Will the other driver’s insurance company pay for my medical bills? What about a rental car? Will they reimburse me for time off work right away?
The answer can be a little bit complicated.
Medical Expenses
The at-fault driver’s insurance company should pay medical expenses up to that driver’s policy limits.
The at-fault driver’s insurance company is not going to write the check right away, though. In fact, it may be years before they pay their fair share.
In the meantime, your own health insurer may pay a portion of those bills unless you have a clause in your policy that specifically excludes damages from an automobile accident.
Your own personal injury protection (PIP) coverage may step in as well. If your health insurance is already paying a portion of the bills the medical payments policy may cover your deductibles and copays, ensuring you don’t pay for anything out-of-pocket.
Keep in mind that both your health insurance company and your own auto insurance company can choose to “subrogate” against your settlement with the at-fault driver’s company. This means they will make a reimbursement claim against your settlement to cover anything they paid for that was rightfully the responsibility of the at-fault driver’s insurance company.
This can seem frustrating and unfair, but the law doesn’t allow you to receive a “double benefit” just because you win a court case. You’re not really losing any money, though…any subrogation money would have gone to your medical providers one way or another anyway.
If the other driver’s policy limits aren’t enough to cover your medical bills (which can happen) you may have to turn back to your own insurance policy. If you have uninsured/underinsured motorist’s coverage, your own policy will make up the difference.
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