Automobile Accident Insurance - How Does It Work?
NC Automobile Insurance for Accidents and Injuries - Get The Basics
Handling an auto insurance claim is more complex than a health insurance claim as there is a variable on “who was at fault in the accident” that determines how coverage comes into play. In North Carolina, the two types of coverage that most often come into play when a healthcare provider treats an auto accident victim is the medical payment (Med Pay) and the Bodily Injury Liability (BI)/Personal Injury (PI). To ease understanding in this document the term PI will be used.
What is Med Pay Coverage?
Med Pay covers direct medical bills and funeral expenses in an auto accident regardless of who is at fault for the accident. It will cover the drivers’ injuries and those injuries sustained by passengers in the car or while a person is driving someone else’s car with their permission. Injuries sustained as a pedestrian are also covered. The insured who purchases the auto policy selects the amount of Med Pay coverage. Medical bills submitted by healthcare providers are paid according to the “fair and reasonable” standard which is very much like the Health Insurance term, “usual, customary and reasonable.”
What is PI Coverage?
Personal injury covers injuries or death to other people that is caused by an insurance company’s driver. It also provides a legal defense if any injured/deceased party sues the responsible driver. A PI claim can include several kinds of loss including medical bills, loss of income, pain and suffering and disability due to an injury. When a claim for PI is settled by the insurance company it is usually referred to as a “settlement”. This is a negotiated financial amount between the insurance company and the injured party that reimburses them for the losses mentioned above.
Posted on Friday, April 25, 2008 at 2:25 PM
Edited on: Monday, April 28, 2008 6:16 AMPosted in Insurance (RSS), Insurance DC (RSS), Insurance MD (RSS)