The cost of medical care has exploded in recent years, making it ever more difficult for people to get the care they need after a car accident without financial stress. No wonder one study found that medical expenses were a primary factor in two-thirds of bankruptcies nationwide. Insurance is supposed to cover these costs after a crash, but many people struggle with their claims or find that their coverage isn’t enough to meet their needs.
If you’re wondering how medical bills are paid after a car accident, a lawyer can help. At Rizk Law, our experienced car accident lawyers understand the stress you’re feeling and how frustrating it is to deal with insurers after a crash. We can walk you through the Oregon auto insurance system, file a personal injury claim on your behalf, and deal with the insurance companies to maximize your compensation.
Who Covers Your Injuries After a Car Accident?
In Oregon, determining who pays for your injuries after a car accident depends on the circumstances of the crash and the available insurance coverage. The state follows a fault-based system for car wrecks, meaning the person who caused the collision is liable for any resulting injuries and losses.
Fault plays a key role in determining who is financially responsible for your medical bills and other losses. Generally, the at-fault driver’s insurance covers the other driver’s medical bills, property damage, and other losses. So, if another driver causes a crash and injures you, you would typically file a claim with their insurance company to seek compensation.
However, Oregon law also requires most drivers to carry at least $15,000 in personal injury protection (PIP) coverage. PIP is a no-fault benefit, which means it pays for your medical expenses, lost wages, and other losses regardless of who caused the accident. This coverage is designed to provide immediate financial help while you wait for the insurance companies to process your claim and determine who’s liable for your injuries. For many people, PIP coverage helps ensure they can receive necessary medical treatment without having to jump through legal hoops.
Unlike many states, Oregon also requires all car accident insurance policies to include uninsured motorist (UM) coverage. If the at-fault driver is uninsured or doesn’t have enough insurance to cover your medical bills, your uninsured/underinsured motorist (UM/UIM) coverage can help. This part of your policy steps in when the other driver’s insurance falls short or they don’t have insurance. In some cases, if your expenses exceed available insurance limits, you may need to file a personal injury lawsuit to recover compensation for the full extent of your losses.
The Long-Term Impact of Medical Bills After a Car Accident
Medical bills from a car accident can have significant long-term consequences, such as:
- Overwhelming debt – Even with insurance, out-of-pocket medical expenses can accumulate quickly after a car crash, leaving people with lingering financial burdens.
- Credit damage – Unpaid medical bills often go to collections, leading to significant drops in credit scores. Poor credit can make it harder to obtain loans, rent housing, or secure good interest rates for a mortgage or car loan.
- Lost income – People with severe injuries may require an extended period away from work to heal, resulting in reduced earnings or job loss. This lost income can force people to deplete their savings or take on additional debt to cover expenses.
- Ongoing medical treatment – Many car accident injuries require ongoing care, including surgeries, therapy, and medications. Even with insurance, recurring copays and deductibles can add up.
- Bankruptcy risk – Medical debt is one of the leading causes of bankruptcy in the U.S. Car accident victims often face this possibility if their financial situation becomes unmanageable.
- Limited future financial opportunities – Money spent on medical bills often reduces people’s ability to save for retirement, invest, or fund education for themselves or family members. This financial strain can affect the victim and their family for years after a crash.
Minimum Car Insurance Requirements in Oregon
Oregon law requires drivers to carry certain types of insurance coverage, including:
Bodily Injury Liability
Bodily injury liability insurance covers injuries you cause to others in an accident. Your auto insurance policy must include at least:
- $25,000 bodily injury coverage per person
- $50,000 bodily injury coverage per accident
Property Damage Liability
Property damage liability insurance pays for damage you cause to someone else’s property in a collision. Your auto insurance policy must have at least $20,000 per accident in property damage coverage.
Personal Injury Protection (PIP)
PIP coverage helps pay for your medical expenses and lost wages, regardless of who caused a collision. All Oregon auto insurance policies must include at least $15,000 per person in PIP coverage.
Uninsured Motorist (UM) Coverage
Uninsured motorist coverage provides financial protection if an uninsured driver injures you in a crash. All Oregon auto insurance policies must include at least:
- $25,000 uninsured motorist coverage per person
- $50,000 uninsured motorist coverage per accident
What Is Personal Injury Protection?
Personal injury protection (PIP) helps pay for certain expenses after a collision, regardless of who caused it. In Oregon, state law requires all auto insurance policies to include a minimum of $15,000 per person in PIP coverage. This no-fault benefit provides immediate financial assistance for medical bills, lost income, and other related costs from a crash.
PIP coverage is particularly important for people who suffer severe injuries in a car accident. After a collision, PIP coverage can pay for hospital visits, surgeries, medications, physical therapy, and other medical expenses. PIP benefits may also cover a portion of an injured driver’s lost wages if their injuries prevent them from working. In some cases, PIP benefits extend to essential services like childcare or household tasks people can’t perform while recovering. This money can be helpful while the insurance companies determine who’s liable for the crash.
This coverage also protects particularly vulnerable accident victims, such as pedestrians or cyclists, when they sustain injuries. Without PIP coverage, injured cyclists or pedestrians may not have the means to pay for their medical treatments while the insurance companies work through the claims process.
What If PIP Doesn’t Fully Cover Your Medical Expenses?
If your PIP coverage doesn’t cover all your medical expenses after an auto accident, you must find other sources of compensation. Depending on the facts of your case, you could file a claim against the other driver’s insurance for additional compensation. If you have health insurance, your policy might also cover your medical expenses. However, you might owe copays or have to meet a deductible before your health insurance coverage kicks in.
In some cases, taking legal action is required to get the compensation you need. You can file a personal injury lawsuit against the other driver if their insurance won’t honor your claim or their coverage isn’t enough to cover your losses. A Portland car accident medical bills lawyer can review your situation to identify all potential sources of compensation.
Get the Most Out of Your Insurance Benefits
While a lawsuit may be necessary to secure fair compensation for your car accident injuries, making the most of your insurance benefits can help you stay financially afloat while the legal process plays out:
- Start by reporting the incident to your insurer as soon as possible. Prompt reporting helps ensure your insurance processes your claim quickly to avoid potential delays or disputes. Provide accurate information about the accident to strengthen your claim, including photos, police reports, and witness statements if available. That said, don’t speculate about fault, and be careful to avoid saying anything that might implicate you.
- Use your coverage wisely by following your doctor’s recommendations and submitting all required paperwork promptly. Otherwise, you might aggravate your injuries or cause delays with your claim.
- Understanding your policy is key to maximizing your insurance benefits. Review your coverage details, including liability limits, personal injury protection, and uninsured motorist benefits, to determine what expenses your insurance will cover. Contact your insurance provider for clarification if you have questions about specific terms.
- Keep thorough records of all accident-related expenses, such as medical bills, repair estimates, and receipts for transportation costs. These documents support your claim and help you make sure any insurance settlement covers the full extent of your financial losses.
- If the insurance company offers a settlement, take time to review it carefully. Consult a personal injury attorney if you feel the offer doesn’t fully address your losses. Legal guidance can help you negotiate for fair compensation.
Call Today for a Free Consultation
With a former insurance defense attorney on our team, Rizk Law understands the ins and outs of Oregon’s insurance system. We’ll handle all the legal work in your case so you can focus on healing. We’ve helped countless Oregon residents recover fair compensation for their medical expenses and other losses, including many six- and seven-figure settlements or verdicts. Here’s what one client said about their experience with our firm:
“Rizk Law was nothing but caring and professional and answered every question I had. They handled my case with care and always asked my opinion. If I need a lawyer in the future I will be back.”
Our attorneys are ready to protect your rights and guide you through the legal process after a car accident. Call now or complete our contact form for a free consultation.