When it comes to health insurance, many people are under the assumption that every plan covers everything. One size doesn’t always fit all so you have to be careful regarding the kind of coverage you want and are getting when you sign up for health insurance. While most health insurance companies do offer you coverage for car injuries, there are still some things which should be noted.
No Fault Laws Apply
Determining the cause of a car accident can be a bit problematic but in some states there are no-fault or shared laws which become applicable first. In the instance where there are no-fault laws in action, the health insurance cannot be used to provide coverage for car accidents. Instead, personal injury protection insurance will be used.
For this reason, this insurance is a mandatory requirement in 12 states. The no-fault nature of the PIP insurance means that compensation is provided immediately by the insurance provider, regardless of which party was at fault for the cause of the accident.
Works Secondary to the Auto Insurance
Health insurance coverage of car accidents also works as a secondary nature to the no-fault coverage or personal injury protection insurance you have. When a PIP policy is in place along with health insurance, the PIP policy will be looked upon as the primary source through which expenses will be covered. In this case, the health insurance will overlap with the PIP only if it is proving to be insufficient. A no fault coverage or personal injury protection insurance limit will be the one that you have to use up first before resorting to using the health insurance.
Exceptions in Coverage
Health insurance coverage is available for auto accidents but they have limitations to their use. In certain states there are exceptions made which make it easier for a person to deal with a car accident. The following are a few of them:
- In some states, such as New Jersey, a person has more flexibility as they can choose between having their health insurance as the primary source through which they can cover the medical expenses incurred for injury.
- On the other hand, if the person has no PIP insurance or other mandatory coverage such as MedPay, they can use their health insurance as the primary coverage provider. There is also the option to file a claim against the insurance of the other driver.
- However, this is a time-consuming process since it the fault in the accident will have to be determined. Based on the division of the fault, the person can expect minor coverage. In the event that the fault lies equally on both sides, coming up to 50% or above, the insurance company is well within their rights to deny the claims.
- PIP and MedPay also provide coverage for any passengers who were in the car with you when the accident occurred. On the other hand, health insurance will only provide coverage for you. Even then, they have the right to deny the claim being made.
It is much better to have the mandatory PIP insurance and health insurance in place so that you can ensure that you are covered in an accident, even if your health insurance does not accommodate it. Still not sure if you’re covered?