How are my Bills Paid?
Do I have to pay a Deductible?
Medical bills will be paid out of your personal injury protection (PIP) benefits from your policy. Fortunately that part of your policy does not require you to pay a deductible of any form.
What is PIP?
In the state of Utah you are required to carry $3,000 of PIP (Personal Injury Protection) even if it is a liability only policy. You may carry more than $100,000 if you choose, but the law requires a minimum of $3,000 on every policy. That PIP amount applies to each individual in the vehicle regardless of whether or not their name is on the policy or they are members of the policyholders’ household. To clarify, that is $3,000 per person, which amount is NOT divided by the number of occupants in the vehicle. Simply put, once you are in a car crash and go to the hospital, a chiropractor, or family doctor to take care of any injuries you sustained from the car crash, your PIP benefits will pay 100% to those doctors or hospital.
You do not have to pay for any medically necessary medical bills resulting from the car crash. It is also important to note that you do not have to pay any deductible when you use your PIP benefits, even if you are at fault. After these benefits have been paid out to the policy limit, your insurance company has fulfilled their responsibility to you and any further bills will be your responsibility. Fortunately there are clinics that will continue to treat patients until they are fully recovered, without any out of pocket expenses. If you are at fault for your car crash the limit of benefits available to you for medical expenses is the amount of PIP benefits purchased with your car insurance policy.
If you are not at fault then you will use your PIP benefit coverage first and any further medical coverage needed will come from the insurance company of the person who is at fault. In either case, it is your auto insurance or the insurance of the car you were in that pays out the medical bills. If you are the passenger in a vehicle that is found at fault and that vehicle does not have insurance coverage you may still be covered if you have an auto policy of your own. It should be noted that with the current cost of health care services that $3,000 is usually insufficient. Most people don’t realize that it costs only a few dollars more a month to increase your PIP coverage from $3,000 dollars to $5,000 or $10,000. Policies with $20,000 to $100,000 in PIP coverage are also available. This is something that we highly recommend that you discuss with your agent.