Legal Quizzes
Legal Tip of the Week: The Benefits of (PIP) Personal Injury Protection Insurance Deborah Nelson+ February 6, 2015

You are injured in a car wreck that was caused by someone who is insured by State Farm. When will State Farm pay your medical bills?

(a) State Farm will pay your doctor directly;
(b) You must pay your doctor and State Farm will reimburse you;
(c) State Farm will pay your bills after you meet your health insurance deductible;
(d) State Farm won’t pay you until you settle your claim against the person who caused the wreck.

Correct Answer: D

The insurance company for the person who hit you has no legal obligation to pay any of your medical bills as they are incurred. If you incur medical expenses as a result of an injury caused by someone else, you are entitled to seek reimbursement for those expenses, however, the insurance company that insured the person who caused the injury will not pay you back for those bills until you settle your case and release all your claims against the person who hit you.

Tip to protect yourself: Buy Personal Injury Protection (“PIP”) insurance to cover your medical bills, and always carry good health insurance.