PIP OVER MEDPAY ANY DAY
Recently, one of our clients who was injured in a car accident realized that she had made a costly mistake when choosing her own insurance coverage. The mistake: She chose to add Medical Payments coverage (MedPay) to her auto insurance policy instead of Personal Injury Protection coverage (PIP). Why is this a mistake?: Because MedPay coverage, which pays only medical bills after an accident, has to be paid back to your insurance company after an injury claim is settled with the insurance company for the driver that caused the accident. PIP coverage is a much better choice of coverage to have because PIP can be used to pay both medical bills and lost wages after a car accident. Better yet, PIP coverage does not have to be paid back to your insurance company upon settlement of an injury claim with another insurance company.
When our Firm settled her injury claim with the at-fault driver, our client had to reimburse her auto insurance company $10,000.00 out of her settlement. If she would have had PIP coverage instead, that $10,000.00 would have stayed where it belonged — in her pocket!