Nobody wants to think about what could happen in the event of a terrible car accident, but some strategic decisions now can reduce stress and improve outcomes later.
Clients will often ask, “how do I maximize my net recovery?” One inexpensive option is to obtain “medical payments” or “Medpay” coverage as part of your auto insurance policy. Medpay will supplement your PIP benefits and pay medical bills on your behalf. The first $5,000 in Medpay coverage costs approximately $15 to $25 per year. That $15 to $25 saves you from having to pay up to $2,500 to your health insurer or MassHealth. As with PIP, you are not required to reimburse your auto insurer for any Medpay benefits paid on your behalf. Instead of a $7,200 net recovery, your net with Medpay is $9,700.
“Suppose I am badly injured in an auto accident?” The amount of damages you recover from a negligent driver depends on the amount of coverage available under his/her policy. All auto insurance policies in Massachusetts require “bodily injury” (“BI”) coverage. If you cause an accident that injures someone else, then you need BI coverage to compensate the victim. The minimum BI coverage you are required to carry is $20,000 per person, or $40,000 for all of the people injured in a single accident. Lawyers and insurers call this a “20/40 policy.” A 20/40 policy may not be enough to compensate the victim of a serious injury if YOU are at fault.
Many people try to save money on their auto insurance premiums by buying a 20/40 policy. More BI coverage costs more money. These people convince themselves that they need only the 20/40 minimum, thinking, “Well, I’m a careful driver, so I won’t injure anyone.” You must decide how much risk you are willing to take.
If you’ve been injured in a car accident and need to speak to a lawyer, turn to the attorney you know you can trust — Steven B. Rosenthal. Call or email The Rosenthal Law Firm for your free consultation today.