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How do different types of auto insurance affect my personal injury claim?

The District of Columbia, Maryland and Virginia have different insurance laws affecting your ability to use what is commonly called First-Party Coverage.  This includes Medical Payment or Medical Expense Benefits in Virginia, and Personal Injury Protection (PIP) in D.C. and Maryland.  In addition, the rules in our area differ on your right to use health insurance, Medicare or Medicaid for accident-related medical care and when different health insurance benefits, if used, must be reimbursed.

Knowledge of available insurance is extremely important and can affect your net recovery.  The interplay of first-party benefits and third-party benefits (the settlement offer from the at-fault person) can greatly enhance or reduce your ability to receive fair compensation for your injuries.  At Stein Sperling, our attorneys help clients look at every benefit available in an effort to maximize the settlement amount they receive.

What are PIP, MedPay and Income Loss Benefits?

Personal Injury Protection (PIP) is a benefit used in Maryland and D.C. that affects your right to compensation, regardless of fault, in an automobile accident.  PIP benefits can be used to pay medical expenses and/or lost wages.  The laws affecting PIP in D.C. and the laws affecting PIP in Maryland differ greatly.

Medical Expense (MEB) or MedPay (MPB) Benefits are available to pay your medical bills after an automobile accident if you have an automobile policy written in the Commonwealth of Virginia.  You must purchase separate MedPay benefits from your automobile insurance carrier, meaning these benefits are not automatically included in your policy or with “full coverage.”  Unlike PIP, MedPay cannot be used to pay any portion of lost wages.  If you live in Virginia, you may also purchase Income Loss Benefits (ILB), which reimburses your lost wages following an accident up to a stated maximum amount.

MedPay benefits and PIP benefits are first-party benefits not subject to subrogation. This means that you have the right, if the policy provides for these benefits, to use the benefits to pay medical bills, without an obligation to pay back those benefits when you recover your personal injury settlement from a third party (the at-fault person).

Stein Sperling’s attorneys are well-versed in dealing with first-party benefits, all of which can affect your bottom line recovery for your injury case.  In addition, no matter where your accident occurs or where you live, since our attorneys are licensed in many states and are active in many bar and trial associations, if your case involves issues concerning out-of-state laws, we have the resources to assist you in your claim.

Why am I using my insurance policy/coverage when I’m not at-fault?

Our attorneys take the time to explain to clients how using their policies/benefits aids in their recovery without negatively affecting their own insurance premiums.  In some cases, these benefits are not mandatory.  So if you have purchased these coverages and you or your attorney doesn’t use them when you need them following an accident, you have paid for benefits you are not using. 
By not using these “no-fault” coverages, you are refusing money you are rightly entitled to collect and use to pay your medical bills or a portion of your lost wages (depending on what state your policy is written).

What are UM and UIM Coverage?

Uninsured motorist (UM) coverage provides protection for you, your household resident relatives and any other occupants of your motor vehicle in the event of an automobile accident caused by someone who does not carry auto insurance. 

Underinsured Motorist Coverage (UIM) provides coverage for you, your household resident relatives, and other vehicle occupants in the event you have an accident with a driver whose liability insurance limits are less than you carry on your own policy. 

Stein Sperling’s injury law attorneys welcome the opportunity to review your auto policy with you and help you understand the coverages available to you.  We want to help clients verify that they have the right types and amounts of coverage to properly protect them and their loved ones. 

How can I be sure I have the coverage I need?

We invite you to bring in your auto insurance policy to discuss with one of our attorneys.  Do not wait until you have an accident and need your coverage to find out if you and your family are adequately protected.  Too often, we see clients, from corporate executives and CEOs to hard-working self-employed individuals, who are not sufficiently protected because they have inadequate insurance coverage on their auto policies.

You cannot assume another person has chosen the right coverages for you.  Instead, we encourage our clients to be proactive and protect themselves, their families and their assets.  Let our attorneys help to protect and guide you through the insurance maze.

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