Hi, I’m John Ostroff, thanks for visiting Ostroff Law.com. You’ve clicked on the question about why your insurance company for your automobile is paying some of your benefits. I’m here to answer that question.
First of all, if you are not the primary cause of the crash you were injured in, even though your insurance company is paying certain benefits, like your medical coverage or your wage loss, your premium with your insurance company can’t be raised if your are not at least 50% at fault for the crash. You may have heard the term no-fault in Pennsylvania, no-fault means that regardless of fault you can determine how much insurance you won for the different things that are on your policy, before no-fault you were at the mercy of whoever caused you to be injured and whatever benefit amounts they chose and no-fault got rid of that, and also established that regardless of fault your company is gonna pay but your premiums can’t be affected.
The most common benefits that are gonna come from your company is PIP, which is your medical coverage, you have to have at least $5,000 this is gonna get a lot more mileage than you think. In other words, your doctors, your hospitals are gonna bill far more than they’re entitled to get paid under your PIP policy, often times 20, 25, $30,000 in medical bills can be paid in full with $5,000 at PIP because they have to accept a fraction of what they bill. It’s guided by Medicare payments, it’s complicated but the bottom line is that $5,000 in PIP coverage will usually get you about 20 to $30,000 in medical treatment, sometimes more, we pay a lot of attention on behalf of our clients that making sure that the medical providers are not getting paid more than they’re entitled too from PIP so we can get as much mileage from their PIP as possible. Another benefit that you may have is wage loss coverage, you’re not required to have that but if you do and you’re out of working and you’re losing wages, you can get this benefit from your insurance company.
Probably the most important coverage you can have and if you don’t have this, get it, it’s not expensive relative to your other coverages and it’s often the most important when you’ve been injured, it’s called UIM or UM. Underinsured motorist and Uninsured motorist. I’m not gonna talk about that coverage here because if you look below there’s another frequently asked question where I address UM and UIM coverages and this is extremely important, it’s often time how our clients are able to obtain full compensation for the injuries they receive from another person’s fault in a crash. Remember these benefits that are paid to you will not affect your insurance premium and we’ll make sure that these benefits are going to work for you, when we help you. I hope this answers your question, thanks.
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