Medical Payments Coverage in Direct Car Insurance Policies

Medical Payments Coverage in Direct Car Insurance Policies

Expenses incurred within one year. The direct car insurance policy says you are entitled to “all reasonable expenses incurred within one year from the date of accident.” Insurance companies draw the line exactly one year from the date of the accident.

Most companies interpret “incurred within one year” to mean that the services or treatment must be rendered before the year is up. Your protest that Junior cannot have his teeth permanently capped for another two years may not be too successful, even if the dentist were to bill you in advance.

A case in Ohio, however, indicates that the courts may be liberal in their interpretation of the word “incurred”:
The insured sued to recover medical expenses of his wife. She was injured May 23, 2009. The doctor submitted his bill of $735 before May 23, 2010, although he was still treating the wife—and continued to do so after May 23, 2010.

The Court decided the insured should recover the entire $735. The jury found the medical expenses had been incurred within the one year period—even though the treatment had not been completely rendered within one year.

Can You Collect Twice For The Same Medical Bills?

Each person can collect up to the limit. The full amount of your direct car insurance coverage is available to everyone in the car. If the limit is $ 1,000, the injured in your car could collect up to $ 1,000 apiece. If five people were hurt, your company might have to pay up to $5,000—but, of course, no more than $1,000 for any one individual.

“Medical Payments” may be purchased with limits of $250, $500, $750, $1,000, $2,000, $3,000, $4,000 or $5,000.

Cost of Medical Payments

The cost hinges on the rate you pay for bodily injury liability coverage. It is not expensive, however. Ask your agent or broker for the exact figures. Here are the approximate rates:
For limits of $250 §500 $750 §1,000 $2,000 $3,000 $4,000 $5,000 The approximate cost will be $5 $6 $7 $8 $9 $10 $11 $12

You can collect twice for the same medical bills. As stated previously, medical payments coverage has nothing to do with negligence or liability. It frequently happens that the injured in addition to his medical payments claim has a valid liability claim against the one who caused his injury.

He does not have to elect to make one claim or the other. He can collect under both the medical payments insurance and the liability claim. It’s startling but true—you can collect two or three times for the very same medical expenses under direct car insurance policy.

Example
Gillen carries medical payments on his car. He is struck from the rear when he stops for a red light. He is hospitalized and ends up with medical expenses totaling $350.
1.Gillen has “Blue Cross” protection and that takes care of $100 of the hospital charges.
2.He presents all the bills ($350) to his insurance company and collects for the entire amount under his medical payments.
3. Then he again presents the same bills to the liability insurance company on the car that caused the accident—and collects again.



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