Asked in InsuranceAuto InsuranceAuto Insurance ClaimsMedical Insurance
Auto Insurance Claims
If an auto insurance pays for medical claims and a settlement is received from an at-fault driver for bodily injury is that to repay the insurance co?
July 28, 2015 9:56PM
- According to my insurance company, if i receive money from the at fault other driver as in a settlement, then yes I have to repay my own insurance company for the medical related expenses they paid for me that fell under my medical coverage policy. So if you have 10,000 in bodily injury and you used 5,000 in medical and you were awarded 20,000 by the other insurance company, you must pay them back that 5,000 and can keep the rest. This may not be true for all companies. Your claim advisor or insurance agent should be able to answer for you. The other screwy thing is that if you have to go to court to get a settlement or any money awarded, my insurance company said they will not pay for any costs associated with a lawyer or court but that if I get any money, I HAVE to pay them back all the medical they paid out on my behalf. I can choose to get whatever settlement is offered and get the leftovers, I can hire an attorney(out of my pocket) or I can do nothing. I am not sure why we pay these people.
- In the UK there are very clear distinctions between compensation for pain and suffering for bodily injury and financial expenses such as medical expenses. Often the sums paid by your auto insurer on your behalf including vehicle repair expense will be claimed directly by your auto insurer from the person at fault whilst your solicitor deals with the claim for your bodily injury and additional financial losses. However, your solicitor will liaise carefully with your auto insurer to ensure that the insurer's rights are not prejudiced and all proper monies are recovered. To see examples of the types of compensation you can claim click the related link entitled "traffic accident compensation".
- In Florida, the answer depends on whether you have uninsured/under-insured motorist ("UM") coverage. First, your own company must pay the first $10k, then the at-fault party must pay the remainder, up to the policy limits. If the at-fault party's policy limits do not cover all the expenses and you intend to seek the unpaid remaining expenses from your policy (the UM coverage) and not from the at-faulty party, then you must obtain permission from your own insurance co. prior to settling for the at-fault party's policy limits. As to the first bulleted answer above: that person should really find someone UNBIASED to seek advice from other than the employee of the for-profit insurance company.