After a car accident in New Jersey, medical bills often start arriving long before any insurance claim is resolved. Emergency room visits, ambulance transport, follow-up care, physical therapy, and diagnostic testing can add up quickly. Many injured people worry about how these bills will be paid and whether they are personally responsible for the costs.
New Jersey has a unique auto insurance system that determines who pays medical expenses after a crash. Understanding how this system works is essential, especially for drivers and passengers in areas like Freehold and Point Pleasant who may be dealing with insurance adjusters shortly after an accident.
New Jersey follows a no-fault insurance system for car accidents. This means that after most accidents, your own auto insurance policy pays for your medical expenses, regardless of who caused the crash. This coverage is known as Personal Injury Protection, often referred to as PIP.
PIP coverage is designed to ensure that injured drivers and passengers receive prompt medical treatment without having to wait for a fault determination. It applies to many types of injuries and can cover medical bills, rehabilitation costs, and sometimes lost wages.
PIP coverage is mandatory in New Jersey auto insurance policies, although coverage limits and options vary. When you are injured in a car accident, your medical providers typically bill your PIP insurer directly.
PIP may cover:
The amount of coverage available depends on the limits selected in your policy. Once PIP benefits are exhausted, other sources of payment may come into play.
PIP coverage is not unlimited. Serious injuries can quickly exceed policy limits, leaving unpaid medical bills. When PIP is exhausted, health insurance may become the next source of payment for ongoing treatment.
Health insurance providers may require reimbursement if you later recover compensation through a car accident claim or lawsuit. This process, known as subrogation, can affect how a settlement is distributed.
In some situations, medical providers may place liens on a potential settlement to ensure they are paid. Understanding these issues early can help prevent unexpected financial complications.
Passengers injured in a car accident are often covered under the PIP policy of the vehicle they were riding in. If that policy does not apply or is insufficient, the passenger’s own auto insurance policy may provide coverage.
Pedestrians injured by a vehicle may also be covered by PIP, either through their own auto insurance policy or the policy of the vehicle involved in the accident. These situations can become complex, especially when multiple policies are involved.
While PIP handles medical bills initially, the at-fault driver’s insurance may become relevant when you pursue a personal injury claim. If your injuries meet certain legal thresholds, you may be able to seek compensation for medical expenses not fully covered by PIP, as well as other damages.
This may include future medical care, out-of-pocket expenses, and costs related to long-term treatment. Proving these damages often requires medical documentation and expert opinions.
Even with PIP and health insurance, accident victims may face out-of-pocket expenses. These can include co-pays, deductibles, uncovered treatments, and expenses related to transportation or home modifications.
Keeping detailed records of all accident-related medical costs is important. These records may support a claim for reimbursement or compensation later in the process.
Insurance companies frequently scrutinize medical bills after a car accident. They may question whether treatment was necessary, whether injuries were related to the crash, or whether charges were reasonable.
Disputes over medical bills can delay payment and create stress for injured individuals. Having legal guidance can help address these disputes and ensure that valid medical expenses are properly considered.
Understanding who pays medical bills after a car accident is only part of the picture. The way claims are handled, how bills are documented, and how insurance companies are approached can significantly affect the outcome.
Mallon & Tranger represent injured individuals throughout New Jersey in serious accident cases. Our car accident attorneys work to protect clients from unfair insurance practices and pursue compensation for medical expenses and other losses.
Medical bills can quickly become overwhelming after a car accident, especially when multiple insurance policies are involved. Knowing your rights and options can help you focus on recovery rather than financial stress.
If you were injured in a car accident in Freehold, Point Pleasant, or elsewhere in New Jersey and have questions about medical bills or insurance coverage, contact us to discuss your situation and learn how we can help.
