No one likes paying for car insurance. The insurance industry has built an empire of catchy commercials with funny animals dedicated to enticing customers to switch insurance carriers in order to pay less.
However, when it comes to choosing your auto insurance coverage, it is often worth paying a little more to get better benefits. This is especially true when you are considering your auto insurance policy’s medical coverage. Before you choose the cheapest option, make sure you understand how little coverage the minimum option provides.
Will Your Medical Expenses Be Covered?
After an accident, your own auto insurance coverage will pay for the medical expenses of you and your passengers, up to the limits of your policy. The limit of the policy
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While your health insurance will kick in to cover any unpaid medical bills (up to your health insurance policy’s own limits), using your auto insurance coverage rather than your health insurance provides several benefits.
First, your auto insurance coverage may be cheaper for you to use. In the days and weeks following an accident, cash may be tight—especially if you can’t work. In Pennsylvania, medical coverage from your auto insurance does not require you to pay any co-pays or deductibles, which may make it easier for you to seek treatment. Though New Jersey does have a co-pay of 20% and a deductible of $5,000 for its standard policies, this still may be cheaper than your health insurance, and you may be able to choose an auto insurance policy which decreases the amount of your co-pay and deductible.
Second, if you use your health insurance to pay your medical bills, your policy will likely require you to pay back your health insurance company with any money you receive in an auto accident lawsuit. If you have to use your health insurance to cover your medical bills, you may find that any money you win for your car accident case will be taken by your health insurance