Were you recently involved in a car accident in the Tar Heel State? If so, you might be wondering about North Carolina insurance coverage after an accident, particularly how it will pay for your medical care.
Several different policies could cover accident-related medical expenses, generally starting with your own health insurance provider. You could also have coverage through various provisions of your auto insurance policy, including Medical Payments (MedPay), uninsured motorist (UM), and underinsured motorist (UIM) coverage. Still, if the other driver was entirely at fault for the crash, their liability insurance should pay for your medical expenses once you settle your car accident claim.
Can Health Insurance Pay Accident-Related Medical Bills?
Yes, health insurance can help pay for your medical costs related to treating your car accident injuries. In fact, it’s generally your first source of coverage, although copays and deductibles may apply. North Carolina law expects anyone with a health insurance plan (including Medicare and Medicaid) to use it after a traffic accident (North Carolina Rule of Evidence 414).
Many accident victims assume that the at-fault driver’s liability insurer will immediately start paying bills, but this is a misconception. Rather, it takes time to establish who’s at fault, receive a long-term medical prognosis, and negotiate a settlement agreement with the at-fault party’s insurer. That settlement should include money for past and future medical care, some of which might go to repay the health insurer for the medical expenses it covered, depending on the details. But generally, liability insurance will not pay for medical bills before the injured person signs a release as part of their settlement.
How Does the At-Fault Driver’s Liability Insurance Cover Medical Expenses?
In North Carolina, a driver who is entirely at fault for a car accident is financially responsible for the harm others suffer as a result, including their medical care. The at-fault driver’s liability insurance policy typically assumes this responsibility, reimbursing the injury victim for reasonable and necessary medical expenses caused by the crash, up to the driver’s policy limits. According to the NC Division of Motor Vehicles (DMV), drivers must carry liability insurance with minimum coverage of at least $50,000 per person and $100,000 per accident for bodily injuries.
Insurance coverage for medical expenses can pay for:
- Ambulance transport
- Emergency care
- Hospitalization
- Surgeries
- Follow-up appointments
- Specialist visits
- Medication
- Medical equipment
- Rehabilitation
- Physical therapy
- Any anticipated future treatment
Note that while bodily injury liability coverage protects people injured by the insured driver, it does not pay the at-fault driver’s own medical bills.
The liability insurer usually does not pay each bill as treatment occurs. Rather, the injured party will rely on their own health insurance at first, assuming they have a policy. Once their condition stabilizes and the cost of future care becomes clearer, the injured party and their car accident lawyer can file a personal injury claim against the liability policy.
At this point, the insurance company and the injured party may negotiate for a settlement, which could also involve disputes about what treatment is accident-related, reasonable, or necessary. If this negotiation process is successful, the insurer will pay the injured person an amount that reflects the cost of their medical expenses and other losses, such as lost income, pain and suffering, and property damage. In return, the injured person signs a contract releasing the insurer from future liability for their accident-related expenses.
Finally, the injured person’s attorney uses the settlement money to pay any outstanding medical bills, health insurance reimbursement claims, or liens. Only after these issues are resolved will the injured person receive the remaining settlement funds.
What Is Medical Payments Coverage?
Medical Payments (MedPay) coverage is an optional first-party insurance that pays for a covered person’s medical bills after a car crash, up to the policy limits. Because it’s a type of no-fault insurance, it will still pay even if the policyholder is to blame for an accident. These benefits often provide more immediate financial relief after a crash.
How Does Uninsured Motorist Coverage Pay Medical Expenses?
Uninsured motorist (UM) coverage applies when the person who causes an accident either does not have insurance or flees the scene and cannot be found. This mandatory policy provides important protection, as 11.8% of drivers in North Carolina were uninsured in 2023, according to the Insurance Information Institute (III).
Your UM policy will effectively replace the missing insurance coverage, including payment for your medical care. From there, the process is similar to a liability insurance claim, except the injured person negotiates with their own insurer rather than the other driver’s liability insurer.
How Does Underinsured Motorist Coverage Help with Medical Expenses?
Serious accidents can lead to injuries so severe that they cost more to treat than what many budget insurance policies will cover. Underinsured motorist coverage is meant to address this issue by paying for costs that exceed the at-fault driver’s policy, up to its own policy limits.
For example, let’s say Bill runs a red light and hits Tina, who suffers $150,000 in medical expenses as a result. Bill has only the minimum insurance allowed by law, which will cover only $50,000 of those losses. Fortunately for Tina, she purchased a UIM policy with a $200,000 limit. Tina’s UIM policy should pay the extra $100,000 in medical care not covered by Bill’s policy.
Like UM coverage, UIM insurance is mandatory in North Carolina under N.C.G.S. § 20-279.21.
Can More Than One Type of Insurance Cover the Same Accident?
Yes, multiple policies can provide insurance coverage after a car accident. For example, a UIM claim also involves a liability claim against an at-fault driver, while health insurance will pay for medical treatment until an at-fault driver’s liability insurer agrees to a settlement. An experienced attorney can assess your situation and explain which claims you might be entitled to pursue.
Get Legal Help from Our Personal Injury Attorneys in Raleigh, NC Today
Do you need help paying medical bills after an accident in the Raleigh area? The team at Younce, Vtipil, Baznik & Banks can review the relevant policies, determine the extent of your coverage, and handle your North Carolina accident insurance claim.
With over 100 years of combined legal experience, our car accident attorneys have recovered over $150 million in personal injury settlements and verdicts.* Here’s how one of our happy clients described their experience:
“This was my first time using an attorney for an accident. I’m glad I chose Attorney David Vtipil to represent me. Along with his secretary Carmella, and the rest of Younce, Vtipil, Baznik & Banks, P.A. They made the process clear, and workless. They kept me informed through the case and, were very professional. Thank you all so much!” – Wanda Phillips
We want to help you, too. Contact us for your free consultation when you’re ready to learn more about your options for covering your medical care after a collision.
*Each case is unique, and past results do not guarantee future outcomes.
