BASIC INFORMATION ON AUTOMOBILE ACCIDENTS: WHO PAYS FOR WHAT IN PENNSYLVANIA?
Navigating the world of insurance after a car accident can be very confusing. There are many questions that revolve around who pays for injuries, medical bills, and property damage. Understanding the basics of car accident law ahead of time can save you considerable time and effort.
LIABILITY FOR BODILY INJURIES
To as?
Under Pennsylvania law, Pennsylvania car owners must have at least $ 15,000 of bodily injury liability coverage to pay for another driver’s personal injuries, in the event of an accident. Drivers can choose higher amounts.
B. Who is the country?
Bodily injury coverage is based on fault and is available to the other driver in a car accident. For example, Driver A causes an accident with Driver B, causing serious personal injury to Driver B. Driver A’s auto policy includes the state minimum of $ 15,000 of bodily injury liability coverage. Driver B can make a claim under Driver A’s auto policy, for personal injury, up to the $ 15,000 limit. However, Driver B may be limited in what he can recover, depending on whether he selected Total Tort or Limited Tort in his own car policy.
C. How does it work?
In some cases, an injured driver can file a claim for bodily injury liability coverage against the other driver’s insurance company without having to file a lawsuit. However, if that insurance company does not offer fair and reasonable compensation, the injured driver may have to file a lawsuit against the other driver.
DAMAGE TO PROPERTY
To as?
Under Pennsylvania law, Pennsylvania car owners must have at least $ 5,000 of property damage coverage to pay for damage to another driver’s property, in the event of an accident. Drivers can choose higher amounts.
B. Who is the country?
This type of coverage is often misunderstood. It is not available to an insured driver, under their own policy. Rather, it is available to the other driver in the event of an accident and is based on fault. In our example, driver A causes an accident with driver B. Driver B’s car is totaled. Driver A has $ 10,000 of property damage coverage. Driver B can make a claim under Driver A’s auto policy for the total fair market value of the car, up to $ 10,000. In this same example, let’s say Driver A’s car is damaged. Driver A cannot file a property damage claim under his own policy. Again, property damage coverage is only available to the other driver and is based on fault.
C. Collision and comprehensive coverage
Collision and comprehensive coverage are optional and cover different types of car damage. The collision covers any damage caused by a car accident less a deductible. Comprehensive coverage covers any damage other than by accident, such as fire, theft, etc., less a deductible. A driver who has purchased this type of coverage can file a claim under his or her own auto policy. Using the same example, Driver A, who caused the accident, can file a claim to repair his car, if and only if he has collision coverage. If Driver A did not purchase collision coverage, he would be responsible for the repairs.
D. How it works
If an innocent driver’s car is damaged in an accident caused by another driver, a property damage claim can be filed directly with the other driver’s auto insurance company. As long as the accident is clearly the fault of the other driver, this is usually the easiest way to file a property damage claim. If the innocent driver has collision coverage under their own auto policy, then a property damage claim can be made with their own auto insurance company. However, the deductible would be subtracted from the total amount recovered. So, because the accident was the fault of the other driver, the innocent driver’s own auto insurance company must get the deductible from the other driver’s auto insurance company. That deductible should eventually go back to the innocent driver.
Again, using our example, Driver A is at fault for an accident with Driver B. Driver B has collision coverage with a standard $ 500 deductible. Driver B has the option of filing a claim with the insurance company. from Driver A or your own insurance company. If you make the claim with your own insurance company, you will receive the fair market value of your total car minus the $ 500 deductible. Your insurance company would then seek reimbursement from Driver A’s car insurance company for the fair value market and deductible. At some point, Driver B should receive the $ 500 deductible from his own insurance company, because the accident was the fault of Driver A.
A property damage claim is generally made without having to resort to a lawsuit. Unforeseen expenses such as car rental and towing / storage costs are immediately compensable if the innocent driver has purchased such coverage under their own policy. Otherwise, they will become out-of-pocket expenses in a subsequent personal injury lawsuit against the other driver.
MEDICAL BENEFITS
To as?
Under Pennsylvania law, Pennsylvania car owners must have at least $ 5,000 of medical coverage to pay for medical bills incurred in a car accident. Drivers can choose higher amounts up to $ 1,000,000.
B. Who is the country?
Many states, including Pennsylvania, are “No Fault,” meaning that regardless of who was at fault for the accident, a driver can file a claim for medical benefits under his or her own auto insurance policy, up to the amount of the accident. coverage of purchased medical benefits.
Using our example, Driver A causes an accident with Driver B. Both drivers have insurance policies with medical benefits coverage. Let’s say Driver A has $ 10,000 of health benefits coverage and Driver B has the state minimum of $ 5,000. If both drivers are injured and require medical treatment, they would both file a claim under their respective policies. In this example, Driver A could claim medical benefits up to $ 10,000 and Driver B could claim medical benefits up to $ 5,000.
Also, the amount of medical benefits coverage is per person, per accident. In other words, if a parent and their minor child are injured in an accident and the parent has an auto policy with $ 5,000 medical benefits coverage, they can both receive up to $ 5,000 of that coverage. If the parent or child is involved in a subsequent accident, they would again be eligible for $ 5,000 of the same coverage.
C. How it works
When making a claim for medical benefits, a driver can go to a doctor / provider of their choice and must provide their auto policy claim number and auto insurance information. Under Pennsylvania law, once a driver provides this information to a medical provider, that medical provider must bill the auto insurance and cannot bill the driver directly. Once the auto insurance company receives the bills from the medical providers, the bill amounts will be reduced in accordance with Act 6, an amendment to Pennsylvania’s motor vehicle law made in 1990. Act 6 limits the amount that medical providers can recover for accident related medical bills. At some point, the amount of medical benefits under a car policy can run out and then the driver would use their own medical / health insurance to cover the remaining bills.
D. Coverage priority
When a person is injured in an accident, there may be more than one source of medical benefits. Under Pennsylvania law, there is an order of coverage, known as a “priority of coverage.” The first level is an automobile policy in which the injured person is a “named insured,” which generally means an automobile policy purchased by the injured person. The second level is an automobile policy in which the injured person is “insured.” This generally refers to an automobile policy purchased by the injured person’s spouse, parent, or relative residing in the same household.
The third level applies when the injured person does not have an automobile policy and is not covered as insured by any automobile policy. This third level is a car policy that covers the car the injured person was riding in when the accident occurred. Finally, the fourth level applies to injured persons who are pedestrians or cyclists. This fourth level is any auto policy involved in the accident. In some situations, more than one policy may apply, and the first auto insurance policy billed will be liable up to the amount of applicable medical benefits. Then that insurance company can request reimbursement from the other insurance company. Also, if a person is injured in a car accident while on the job, workers’ compensation coverage is the primary source of coverage for medical benefits.
F. People who do not qualify for medical benefits
Under Pennsylvania law, certain classes of drivers do not qualify for medical benefits, even if they have purchased auto policies. They include motorcycle drivers, snowmobiles, motorized bicycles, and four-wheeler operators. Also, a registered car owner who does not purchase auto insurance cannot claim medical benefits. For example, a person may own a registered car, but then cannot get insurance for it. If that person is injured while riding as a passenger in a friend’s car, they cannot claim medical benefits under the friend’s auto policy. These classes of drivers must use their own medical / health insurance to pay for medical bills incurred as a result of an accident.
For more information, visit http://www.thepanjinjurylawyers.com/practice_areas/new-jersey-car-accident-attorney-pennsylvania-truck-wreck-lawyer.cfm