The bills show up fast after a car accident. There is the ambulance ride, the emergency room, the follow-up visits, and maybe months of physical therapy. At the same time, you may be missing work and hearing very little from the insurance company. So who pays for all of this? The short answer is that it depends, and the other driver’s insurer is rarely the first one to pay. This post explains where the money usually comes from in Iowa, what to watch out for, and how your bills are handled when your claim ends.
Why the Other Driver’s Insurance Company Rarely Pays Right Away
What the Adjuster May Tell You
Soon after a crash, the other driver’s insurance adjuster may ask you to send in all of your medical bills. That sounds like a promise to pay them, but it is not. You can ask the adjuster to put in writing that they will pay your bills as they come in. In most cases, they will not do it. The usual deal is that money only comes after you sign a release, which closes your claim for good. Once you sign, you cannot ask for more, even if your treatment goes on for months.
Why Unpaid Bills Put Pressure on You
Bills that sit unpaid can end up with a collection agency. Then the calls start, and some callers talk about taking money from your paycheck. That stress works in the insurance company’s favor. A person who is worried about collection calls is more likely to take a quick, low offer just to make it stop. Knowing this ahead of time helps you avoid that trap. The better move is to line up other ways to pay while your claim is still open.
Who Pays Your Medical Bills While Your Claim Is Open
In most Iowa car accident cases, bills get paid from a handful of places. Here they are, in the order most people should look at them.
Your Health Insurance
Your own health insurance, whether it comes from your job or you bought it yourself, is usually the best first source. Give the hospital and other providers your insurance card and policy details so they can send the bills there. Some providers say they cannot bill your health plan because someone else caused the crash. That is not a good reason. Health plans generally pay for covered care no matter who caused the injury. If a provider pushes back, ask to speak with the billing office manager, and call your insurer to confirm your coverage.
Medical Payments Coverage on Your Car Policy
Many auto policies include medical payments coverage, often called MedPay. It helps pay medical costs for you and the passengers in your car, no matter who caused the crash. Limits can run from $1,000 up to $100,000, depending on what was bought. Many people use MedPay to cover the co-pays and deductibles that health insurance leaves behind. A common worry is that using it will raise your rates. It is coverage you paid for, and if you were not at fault, using it generally should not raise your premiums.
What About Personal Injury Protection?
You may see Personal Injury Protection, or PIP, mentioned online. PIP pays medical bills and lost wages no matter who is at fault, and some states require it. Iowa is not one of them. Iowa is an at-fault state, which means the driver who caused the crash is the one expected to pay for the harm. Check your policy to see which medical and lost wage coverages you actually have. For most Iowa drivers, MedPay is the one to look for.
Hospital Write-Offs and Payment Plans
If you have no health insurance, or your MedPay runs out, call the provider’s billing office. Ask if they will write off part or all of the balance because of your financial situation. Many hospitals are nonprofit, and many have charity care or financial aid programs. You can also ask for a payment plan in writing and ask them to hold your account from collections while you work it out.
Help From Charities, Family, and Friends
If none of those options work, local churches, charities, family, and friends may be able to help for now. It is hard to ask, but a car accident can hit your budget hard. Short-term help can keep bills out of collections while your claim moves forward.
How Fault and Liability Decide Who Pays in the End
Even when other sources pay up front, the person who caused the crash is the one who is supposed to cover the cost in the end. This is called third-party liability. It applies to your medical bills, your lost wages, and the damage to your car.
Liability Insurance and Iowa’s Minimum Limits
Most drivers carry liability insurance, which pays for harm they cause to other people. Iowa requires these minimum limits:
- $20,000 for injury or death of one person in a crash
- $40,000 for injury or death of two or more people in a crash
- $15,000 for property damage in a crash
These are only the minimums, and a serious injury can cost far more than $20,000. When the damage is higher than the limits, the at-fault driver may be personally responsible for the rest. Collecting from a person is often hard, though, which is why it helps to know about all coverage that might apply, such as your own underinsured motorist coverage if you have it.
Iowa’s Modified Comparative Fault Rule
Iowa uses a rule called modified comparative fault. The insurer, or a jury if the case goes to court, looks at how much each driver added to the crash and gives each a percentage of fault. Your payout goes down by your own percentage. If you are found more than 50 percent at fault, you cannot recover money from the other driver. For example, if your damages are $100,000 and you are 20 percent at fault, you could recover $80,000.
How Fault Gets Decided
Fault comes from the facts of the crash. Common factors include:
- Negligence, which means someone did not use reasonable care to prevent harm
- Traffic law violations, such as speeding, running a red light, or failing to yield
- Witness statements from people who saw the crash
- The police report, which may list the location, the weather, and any tickets
- Vehicle damage, since the size and pattern of the damage can show how the crash happened
Once fault is clear, the sides can settle the case. If they cannot agree, a judge or jury decides how much each side owes.
What Happens to Your Bills When Your Case Settles
Repayment to Your Insurers
If your health insurer or MedPay paid bills early, they may ask to be paid back out of your settlement. Medicare and Medicaid may do the same. These repayment claims can take a big bite out of what you receive, and they can sometimes be reduced. Keep a record of every payment made on your behalf.
What You Can Recover
A settlement or verdict can cover more than the bills you already have. It may include:
- Medical expenses, both past and future
- Lost wages and lost earning ability
- Pain and suffering
Try not to settle until your doctor knows how far you will recover, because a signed release means you cannot ask for more later. Keep the deadline in mind too. Iowa generally gives you two years from the date of the crash to file an injury lawsuit.
How an Iowa Car Accident Attorney Can Help
A car accident attorney represents people hurt in crashes. That means dealing with the insurance adjuster so you do not have to, finding all the coverage that applies, gathering your records and bills, and building a case for fair pay. An attorney can also help you understand your rights, negotiate with insurance companies, and file a lawsuit if the insurer will not make a fair offer. There may be other ways to pay your bills that you do not know about, and an attorney can look for them. If your injuries will need care for years, an attorney can work to include future medical costs and lost earnings in your claim.
Frequently Asked Questions
Will the other driver’s insurance pay my medical bills right away?
Usually not. Most of the time, the other insurer only pays when your claim settles, and it often asks you to sign a release first. In the meantime, use your health insurance or MedPay.
Can a hospital refuse to bill my health insurance because someone else caused the crash?
A provider may say that, but you can push back. Health plans generally cover care no matter who caused the injury. Ask for the billing office, and call your insurer if you need to.
Will using my own MedPay coverage raise my insurance rates?
If you were not at fault, using MedPay generally should not raise your rates, since it is coverage you paid for. Insurer rules can differ, so ask your agent if you are unsure.
What if I do not have health insurance or MedPay?
Ask the hospital about write-offs, charity care, and payment plans. Many hospitals are nonprofit and have programs for people who cannot pay. You can also ask local charities, family, or friends for help, and an attorney may know other options.
Talk With an Iowa Car Accident Attorney Today
Medical bills should not decide how you settle your claim. If an insurance company is pressuring you, or you are not sure how your bills will be paid, Ball, Kirk & Holm can look at your situation and explain your options. Call 319-234-2638 for a free consultation to speak with a car accident attorney about your case.