Posts tagged with "Insurance"

Most people don't understand Massachusetts no fault car insurance laws that have given way to Personal Injury Protection plans for car accidents

How Massachusetts Car Insurance Laws Can Limit Your Settlement

 

We handle a lot of car accident cases here in the greater Boston area. They’re fairly common because they can happen to anyone, even people who consider themselves safe and responsible, and the cars involved have both a large capacity for destruction and are driven frequently. That’s why you see a lot more people who have been hurt in car accidents as opposed to crashes from smaller, less frequently used vehicles like bicycles or snow mobiles.

Massachusetts does have some limits on what car crash victims can receive in settlements. If you’re injured by someone else’s dangerous driving in Massachusetts, you can attempt to receive compensation for your medical bills, damages to your vehicle and for your pain and suffering. However, you won’t be able to receive any medical reimbursements if your medical bill comes under $2,000.

Massachusetts has a minimum threshold of $2,000 for medical expenses from crashes. If one of our case comes under that threshold and no money ends up exchanging hands, we handle that case for free. We only get paid when our client receives a settlement and we’re willing to use the experience for outreach so people know they can trust us the next time they need a lawyer.

To get a little more technical, in Massachusetts we have Personal Injury Protection, or n- fault insurance, where the insurance company will pay for damages regardless of who caused the accident. Part of the idea behind the law is to make insurance available for policy holders even when the are struck by an uninsured driver.

If the injuries of all the people in your vehicle during an accident exceed $2,000, your auto insurance will pay that first $2,000 of medical bills. Not your health insurance company, but your car insurance.

A Personal Injury Protection plan  in Massachusetts will pay for costs after $2,000 but before $8,000, and that can include lost wages, medical copays and funeral expenses. If you have health insurance, PIP will pay up to $2,000 for medical expenses. If you lack health insurance, PIP will pay whatever is needed until it reaches that $8,000 cap.

There is one wrinkle that can have a big impact on a case. When a car crash victim receives a settlement, the health insurance company can take some of that money for reimbursement for the medical bills. PIP benefits do not need to be reimbursed from a settlement. This won’t make much of a difference if the settlement is for $1 million dollars and the medical expenses were $5,000, but it will if the medical expenses are $5,000 of $15,000 settlement.

PIP insurance is confusing and obtuse to most people, and we’re happy to walk people through their options. Our firm will also deal with the insurance companies directly for you so you can concentrate on your recovery.