After being injured in an accident, it is essential to pay your bills as they arrive. Otherwise the bills will accrue interest and go to collection–costing you even more in the long run. When facing the piles of bills, it can seem daunting to find a way to cover the costs. Especially when you don’t know how to go about it.
While you are waiting for the dust to settle on your case, here are four ways to ensure that your bills are paid on time.
1. Use PIP
PIP, also known as Personal Injury Protection, is an accident compensation that everyone who has auto insurance is entitled to. It is separate from your Bodily Injury Protection. The standard is typically $3,000 per accident, per person in the car. Occasionally you can even stack the PIP of the other driver on top of your own coverage. This coverage can be used to pay bills for the injuries you sustained in your accident.
After the accident, you can give your auto insurance to your provider to pay your bills. You will first provide your auto insurance and then you will provide your health insurance. PIP will be charged until it is exhausted before your health insurance is charged.
Although the standard is typically $3,000 in the state of Utah, it is wise to talk to your insurance agent to find out your Personal Injury Protection coverage.
2. Use your Health Insurance
Once PIP is exhausted, your health insurance can be used to pay for your medical bills. Depending on your insurance plan, you may still receive co-pays and deductibles. In order to ensure that the bill doesn’t go to collections, make sure that you pay the co-pays in a timely manner. Any bill that is paid by your health insurance will be reimbursed with the settlement. Your co-pays can be reimbursed in the settlement as well.
3. Create a Lien with your Provider
If your case is being handled by an attorney while you are seeking treatment, the care provider and the law firm can create a lien. The lien is a form of contract ensuring that payment will be made when the case is settled. When a lien is created, the bills will be paid on credit and then paid off once your settlement check is received. As soon as the documents are signed, the treatment amount will be taken out of your settlement and the bills will be paid before you receive the rest of your settlement.
Hospitals and some provider offices will create a lien with you without your attorney. However, this option is more likely with an attorney, as the attorney signs to guarantee that the bills will be paid.
4. Pay for it yourself
If the other options are exhausted or unavailable to you, you can always cover the bills yourself. The money that you spend on your bills can be reimbursed by your settlement. Essentially, you are borrowing from yourself and will pay yourself back with the settlement check. If you are unable to pay for it yourself out of pocket, many provider offices have payment plans. It is extremely important to get the payment process started to ensure that your bills do not accrue interest.
Bills are stressful at any time, especially when the injuries sustained were cause by someone else. It is good to be aware of your options and take advantage of the resources available to you. Communicate any concerns you have in regards to the roles that PIP, Health Insurance, liens, and personal payments play into your claim with your attorney (or with us).
If you have any questions about legal representation for your personal injury, please contact Utah Legal Team at . Our attorneys would love to speak with you!