Both health insurance and car insurance can cover you in case of accident, harm, or illness. While these coverages both involve private industries and are regulated at the state and federal levels, they serve very different purposes. You might be wondering, ‘Does health insurance cover car accidents?’ The short answer is - sometimes. The Affordable Care Act (ACA) made health insurance obligatory for all Americans. Health insurance is necessary as it offers coverage for you and your family against costly medical procedures, checkups, and even surgeries. It is important to thoroughly understand the coverage and limits of your health insurance as it relates to auto accidents so you can adequately protect your most important asset - your health!
Does health insurance cover car accident injuries?
In some instances, health insurance can cover the cost of car accident injuries. Many factors such as your particular coverage, the circumstances of your accident, and applicable laws will need to be considered to determine which insurance will cover your medical treatment. Typically, if your insurance for car accident occurrences covers any medical expenses, this coverage will be applied before health insurance. If you live in a ‘no fault’ state, you will be required to cover your medical expenses after an accident via different types of car insurance. In certain cases, your health care and car insurance can work together to help reduce the financial burden after the accident.
Primary vs. secondary insurance: how they work together
Generally, primary insurance will pay your medical bills first. Secondary insurance will kick in afterward and can help pay for some of the leftover costs after the primary insurer has paid. Usually, when your health and car insurance work together, your auto insurance will act as the
primary insurance, and health insurance will pay secondary. However, the specifics of what insurance may help pay for your accident could come down to who is at fault for the accident and the laws in your state.
Here are some examples of how health insurance can coordinate with auto insurance post-accident:
- Situation 1- you are in an auto accident in a no-fault state that requires personal injury protection (PIP) coverage. Here, your PIP auto coverage would be the primary insurance, and your health insurance would be secondary to the PIP coverage.
- Situation 2- if you are in an accident in a fault or tort state and you are at fault, you will be legally liable for paying the other driver ‘s damages. These damages can include property damage, medical bills, lost wages, etc. Here, your auto insurance would be the primary insurance. If your auto insurance cannot cover the full amount of damages, you may need to cover the remaining costs out of pocket.
- Situation 3- if you are in an accident in a fault state and you are not at fault the other driver will be responsible for medical costs. In this case, your health insurance may cover your upfront expenses (primary insurance), and then look to the other driver’s auto liability insurance to cover the rest (secondary insurance).
If you are curious about your specific accident coverage, check in with your car insurance company to see what your policy entails.
Needing health insurance when having auto insurance
Have you ever Googled ‘insurance for car accident’ or wondered ‘Do I need both health insurance and auto insurance?’ Since 2010, healthcare has been required for all Americans. Unlike auto insurance, healthcare is usually obtained through your employer, is used regularly, and covers preventive care. Auto insurance is mandatory in all U.S. states except Virginia and New Hampshire. Car insurance can kick in to cover medical expenses post-accident such as X-rays and ER visits but is not designed to take care of routine checkups or flu vaccinations.
Differences between health insurance and auto insurance medical coverage
While both auto and health insurance may provide medical coverage post-accident, there are many different coverage options to choose from:
- Medical payments (Med Pay) - if you are in an accident Med Pay could cover medical expenses such as surgery, dental, X-rays, and ambulance transportation. Please note that Med Pay is not a substitute for health insurance, as it only covers you in the event of an accident. If you already have health insurance or HMO coverage, Med Pay may not be necessary.
- Personal injury protection (PIP) - like Med Pay, PIP can provide coverage for medical expenses post-accident. In addition, PIP can offer coverage for lost wages, death benefits, and other reasonable non-medical or work-related losses. Depending on where you live, PIP coverage could be mandatory. It is best to check in with your insurance provider to determine your exact benefits. Please note that you cannot be covered by both Med Pay and PIP, you must select one of the two plans if you are interested in this coverage.
- Uninsured/underinsured bodily injury motorist coverage - uninsured/underinsured motorist coverage is designed to potentially cover medical expense coverage in case the at-fault driver lacks sufficient coverage or does not have bodily injury liability coverage.
- Liability bodily injury - this type of auto coverage may cover the cost of medical expenses as well as pain and suffering for the other driver or drivers if you are found at fault.
These various auto insurance coverages work together to ease the burden on our health insurance system.
Using auto insurance vs. health insurance to pay for car accident injuries
Every auto accident is unique and depending on certain circumstances such as location, fault, and financial situation. While it is possible for health insurance to cover medical expenses incurred by your accident, this route can sometimes take more time and incur more setbacks. Depending on the specifics of your health care plan, you may only be eligible to see certain providers. Your health care plan could also be listed as ‘secondary’, in which case you must use your available auto coverage first. Often, insurance options such as Med Pay or PIP may be the speediest way to obtain coverage for auto accident-related injuries. For example, in a situation where the liability of an accident is being disputed and you don’t have PIP or Med Pay, using your healthcare insurance may be the fastest option.
How medical bills are paid after a car accident
Car accidents are jarring events that can leave your world spinning. While your first thoughts should always be about the safety of all parties involved, it is helpful to learn how car accident injury bills are paid. In most cases, the first step will involve determining any co-pays or coinsurance after you’ve met your deductible. Whether you are paying a co-pay or coinsurance, a percentage of the medical bill depends on your unique policy and whether auto or health insurance applies. After your accident, you should call the appropriate authorities and receive medical care for any injuries. If you use health insurance, you will follow the same steps as if you were treating any other medical illness or health issue.
If you are using car insurance to cover medical costs, follow your normal claim submission process. If you are confused about which coverage to utilize (PIP, Med Pay, etc.) don’t hesitate to call your insurance provider.
Remember, that it is likely that after your accident you will need to pay a deductible and/or some kind of co-pay or coinsurance.
Tips for maximizing your health insurance benefits
Don’t be left in the dark when it comes to reaping the benefits of your health insurance! Make the most out of your health plan by following these tips:
- Regularly review your plan's coverage every year, even if you think you know what's in it. By law, health insurance companies are required each year to provide you with a summary of benefits and coverage.
- Keep detailed medical records, this will aid you in not paying for out-of-pocket expenses that could be covered.
- Find a primary care doctor that you trust and take advantage of preventative care.
- If you have any questions or concerns regarding your policy reach out to your health and/or auto insurance provider.
The question of what insurance to use after an accident can seem complicated. But, with a little research and education on your specific auto and health insurance plan, you can feel more prepared post-accident.
If you are interested in exploring your covered accident coverage, Infinity Insurance Agency (IIA) can help you find a policy that is right for you. Call 1-855-478-3705 for a free quote today!