Life is expensive and you don’t need any hidden costs popping up. However, this is usually what happens when you’re injured in a car accident. Suddenly, you’re dealing with astronomical medical expenses and it’s just the start of your accident-related costs.
Some California residents are adding some protection to their auto insurance policies. Med-Pay can help take care of some of your accident-related expenses. Have you thought about the potential impact of Med-Pay on California accident settlement amounts? Will using Med-Pay reduce any potential compensation you get from the at-fault driver?
What is California Med-Pay?
California isn’t the only state that has MedPay (medical payment coverage). This isn’t a state-run program, instead, it’s a ride-on you can add to your existing auto insurance policy. MedPay is offered by most auto insurance companies, and how it works is pretty simple. The insurance can also be a financial lifesaver if you’re injured in a vehicle accident.
MedPay is optional, it’s not a Golden State insurance requirement. The coverage kicks in when you and/or your passengers are injured in a car accident. Think of it as a type of no-fault insurance. Med-pay doesn’t care who’s responsible for causing the accident. The insurance pays out regardless of whether you’re the victim or at-fault driver.
Usually, Med-Pay is the first insurer to cover your medical costs. The insurance pays up to your policy’s cap, usually around $5,000 but you can pay more for a higher amount. Unlike your health insurance, MedPay doesn’t come with a deductible. You’re not paying anything out of your pocket, at least until your health insurance takes over.
Does MedPay Affect Potential Settlement Amounts?
Even though you have MedPay, you can still file a personal injury claim against the at-fault driver. However, there’s a good chance your insurer is keeping an eye on your claim’s progress. You’re probably going to get a bill from your insurance company for MedPay costs if your claim is successful.
So, if your settlement is for $60,000 and Med-Pay covers $10,000 in medical costs, you may only receive $50,000. MedPay may offset your coverage to help ensure the insurance provider can recover their money. Sometimes, MedPay is more like a medical lien than medical insurance. An offset is similar to a lien.
Steps for Recovering Compensation After a California Car Crash
Since there’s a good chance you’re going to end up paying MedPay back, you should take a few steps to help protect your accident claim.
Gather Your Evidence
You have the legal right to file a personal injury claim and the clock’s ticking on your statute of limitations, it’s time to get the ball rolling on the legal process. Since you can’t file an insurance claim and expect compensation without providing proof, you need to gather supporting evidence. Your evidence will depend on the type of accident, along with your claimable damages.
While every personal injury claim is different, some types of evidence are common in almost every case. This includes gathering medical documentation. Your medical bills, receipts, and even prescriptions can help support your claim. If your injuries require long-term or lifetime care, you may need to bring in medical experts to discuss the particulars of your claim.
Most accidents also involve some type of property damage. A quick note, your property damage isn’t limited to your vehicle. Almost any type of property that’s damaged in the accident can be included in a personal injury claim. This means you can list anything from a purse or phone to a laptop and a favorite coffee mug.
Proving some types of damage can be a little complicated. For example, you’re probably not going to be able to produce repair estimates for a damaged purse. Taking photos of your damaged property can help support your claim.
Pay Attention to the Statute of Limitations
The statute of limitations refers to the time you have to file a personal injury claim. California gives accident victims two years from the date of the incident to file a personal injury claim. What happens if you miss the filing deadline? There’s a good chance you won’t be able to recover compensation from the at-fault party.
Sometimes, the statute of limitations can be paused or extended. Some examples include pausing the statute of limitations for minors. Remember, you must be a legal adult to file a personal injury claim. This also applies if your claim turns into a lawsuit. If the defendant (at-fault party) can’t be located, the statute may be temporarily paused. Legally, the defendant must be notified of your intention to file a compensation claim. Once the defendant is located, the statute of limitations kicks back in.
Even though there can be times when it’s necessary to pause the clock on your claim’s statute of limitations, it’s rarely a good idea. Witnesses can move away and evidence can get lost. All of this can impact the value of your personal injury claim.
File Your Claim and Start Negotiations
Filing your claim is the easy part. You simply send the paperwork and your supporting evidence off to the insurance adjuster. This is when the waiting game begins. Insurance companies typically have a few weeks to review a submitted claim before issuing a response.
Sometimes, insurance companies pay out the full value of a personal injury claim but don’t hold your breath. There’s a good chance you’re going to end up in negotiations, and this can take a few months.
During negotiations, you and your attorney present the insurance adjuster with your claim’s value and they make a counteroffer. This back-and-forth is common and hopefully, you can reach an acceptable settlement. If negotiations fall through, your next step is filing a lawsuit in civil court.
Navigating MedPay Laws in a California Personal Injury Claim
Med-Pay laws are pretty simple. What gets confusing is figuring out the insurance’s impact on your potential accident settlement. Sometimes, you may end up paying the insurer back. Other times, you can walk away with the entire settlement check. To help ensure you can navigate the legal process, it’s a good idea to work with an experienced California personal injury lawyer.
