What is the difference between bodily injury and medical expenses?

Bodily injury liability coverage applies to injuries you or anyone insured under your policy becomes legally responsible for as a result of an accident. Medical payments coverage pays for reasonable medical expenses incurred by you or passengers in your vehicle regardless of who is at fault for the accident.

What happens if medical bills exceed policy limits?

If your medical bills exceed the defendant’s auto policy limit, the defendant is still legally liable for the full amount of your damages. Also, if your medical bills still exceed the defendant’s auto policy limits, you can look to your own uninsured and underinsured motorist policy, or your health insurance.

What does Personal Injury Protection PIP cover during an accident?

PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.

What does bodily injury liability per-person mean?

The per-person limit applies to each person injured in an accident. That means if one person is injured in a car accident, the most your bodily injury liability would pay for all of their medical expenses is $50,000.

How are bodily injury claims calculated?

The general formula runs from 1.5 to 5 times the total amount of Economic Damages as the estimate for Non-Economic Damages. The value of the multiplier will be based upon your claims of pain & suffering, the provable extent of your injuries and estimates for future potential need for medical care and pain & suffering.

Do you have to pay medical bills with settlement?

If you have recovered and are due to receive, or have already received, a personal injury settlement, you will most likely have to pay back those amounts from your settlement to whichever insurance or agency paid your medical bills. However, generally, insurances will ask for a reimbursement.

Does PIP insurance cover pain and suffering?

However, PIP does not include compensation for pain and suffering. In order to recover compensation for pain and suffering, car accident victims may need to file a fault-based liability insurance claim or personal injury lawsuit against the responsible party. A serious injury may include: Dismemberment or disfigurement.

What is the difference between PIP and bodily injury?

Typically, it boils down to this: bodily liability insurance covers the damages of the other party if you were the cause of their accident. PIP is for covering your own injuries and losses after an accident.