PIP, or Personal Injury Protection, insurance is coverage that helps pay for injury-related expenses after an accident, regardless of who was at fault. PIP can help victims get compensation for their medical bills and lost wages quickly after an accident. Although Alabama does not require PIP coverage, drivers can opt to purchase Medical Payments (MedPay) coverage, which serves a similar purpose.
Continue reading below to learn more details.
Understanding Fault-Based vs. No-Fault Car Insurance Systems
Some states follow an at-fault insurance system, while others use a no-fault system.
At-Fault Insurance
Alabama is an at-fault state. This means that the at-fault driver in a car accident is responsible for the damages resulting from the accident. Injured victims from the accident have a right to sue the at-fault driver for their injuries.
Most at-fault states require drivers to carry liability insurance. This type of coverage pays for any injuries or damage they may cause. In Alabama, drivers must carry liability coverage of at least:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage
These minimums are designed to protect other drivers, but they may not fully cover your losses in a serious accident. This is why many drivers also consider optional coverages, such as MedPay.
No-Fault Insurance
Drivers must carry PIP insurance in no-fault states. PIP coverage pays for a portion of a motor vehicle accident victim’s and passengers’ medical bills and lost wages after an accident, no matter who was at fault.
In no-fault states, drivers do not typically have a right to sue the at-fault driver for their damages. However, they may be able to do so if their injuries meet certain severity thresholds. Additionally, if their damages exceed their PIP coverage, they might be able to file a claim against the at-fault driver.
How PIP-Like Coverage (MedPay) Works in Alabama
Although Alabama doesn’t offer traditional PIP insurance, drivers can choose to purchase Medical Payments coverage. MedPay helps cover reasonable and necessary medical costs for you and your passengers after an accident—regardless of who is at fault. It can also apply to pedestrians and household members covered under your policy.
Some common examples of items covered by MedPay include:
- Medical Expenses: MedPay will cover your reasonable and necessary medical treatments following an accident. Medical bills after an accident can easily rise into the tens of thousands of dollars.
- Ambulance Costs: MedPay can help cover the expense of emergency transportation to a hospital following a crash.
- Funeral and Burial Expenses: If you are involved in a fatal accident, your MedPay coverage may provide benefits to help your family cover funeral and burial expenses.
However, MedPay typically does not cover lost wages or long-term care. For those losses, Alabama drivers must pursue claims against the at-fault party’s liability insurance.
Benefits of Choosing MedPay in Alabama
One of the main benefits of MedPay is that you can get compensation after an accident more quickly. With MedPay, there is no need to prove fault or liability. This is because your MedPay coverage applies no matter who caused the accident. Traditional liability insurance requires you to prove fault before it will accept responsibility.
Additionally, MedPay is meant to help keep insurance rates lower for everyone. This is because MedPay helps keep many small accident claims out of court. Instead of filing a lawsuit against the at-fault driver, you simply file a claim with your own MedPay coverage.
Choosing the Right MedPay Coverage
Though MedPay insurance is not required in Alabama, you may still choose to add this coverage to your policy. It could come in handy after an accident to help you obtain compensation more quickly.
When choosing the right coverage, make sure you consider:
- Policy limits
- Deductibles
- Coverage limitations
- Exclusions
- Additional options for extra protection
- Premiums
Conduct your research and discuss your options with your insurance agent. Also, remember that your coverage needs may change over time, so perform regular reviews of your coverage to ensure that it still meets your needs.
Contact Belt, Bruner & Barnett Personal Injury Lawyers for a Free Consultation With a Birmingham Personal Injury Lawyer
If you have been hurt in an accident, the experienced team at Belt, Bruner & Barnett Personal Injury Lawyers is here to support you. We can assess all the available insurance coverage that applies to your accident. Let our experienced Birmingham personal injury lawyers help you pursue maximum compensation for your medical bills, lost wages, pain and suffering, and more.
Contact us now at (205) 973-6417 to schedule a free consultation and let us put our experience to work for you.