Massachusetts
is a mandatory insurance state, and as a result, all residents of Massachusetts
are required by law to carry automobile insurance. New Hampshire, on the other
hand, does not require everyone to carry automobile insurance. Many people ask
us what this means for them, and their potential injury claim.
First,
Massachusetts policies have what is called “personal injury protection” (a/k/a
“PIP”) coverage. This is a type of insurance that pays for medical bills
incurred as a result of an auto accident. So, if you are injured and have a
Massachusetts policy, then the personal injury protection will be the first to
pay out for medical bills. Under Massachusetts rules, the first $2,000.00 of
all related medical bills to the accident are paid by the auto insurance
coverage through PIP. Once the $2,000.00 is reached, there is an important
event that happens, and that is the case reaches the “tort threshold”.
Essentially, if you have incurred over $2,000 in medical bills, or have
suffered scarring or permanent disability, then you are then allowed to proceed
with a personal injury action. If you do not meet this tort threshold, you are
not allowed to proceed under Massachusetts law, and are confined to be reimbursed
by the PIP coverage. Once the $2,000 in PIP coverage is reached, then it gets
really confusing. At that time, the primary payer on related medical bills to
the accident switches to the health insurance company. They will pay the first
payment, and then PIP coverage will pay for any co-pays or uncovered expenses
that health insurance does not pay for. This will cover the next $6,000 of the
total of $8,000 covered by PIP. However, PIP does not just cover medical bills,
it also covers lost wages. So, it is very common for PIP to pay wages the
injured person missed as a result of their inability to physically work. Thus,
PIP coverage provides almost immediate remuneration to injured persons without
having to reach a global settlement on your case.
In New
Hampshire, the insurance policies are markedly different. First, you will not
typically find any PIP coverage that you would in Massachusetts. Instead, most
New Hampshire policies have medical payment coverage that can be as little as
$1,000, and as much as $10,000. This is commonly referred to as “med-pay”. It
is very important that your attorney of choice understands med-pay coverage and
how that affects your claim. Medical payment coverage is non-subrogable, which
is a complex way of saying that any bill paid by the med-pay policy will not be
required to be reimbursed through any settlement. This is different from your
health insurance. If your health insurance carrier pays for medical bills from
an accident, and then you settle your claim from the accident, then the health
insurance carrier has a right to subrogate (i.e. be reimbursed in part) a
portion of the payments they have made to those medical bills. Thus, it is very
important that any attorney understands that med-pay coverage must be exhausted
first in order to save clients a potentially substantial sum of money.
Unfortunately, in New Hampshire, this is all the payments you will receive
other than reimbursement for property damage. Insurance companies will generally
not pay lost wages or non-med-pay covered medical bills without reaching a
global settlement on the file. Thus, as you can see, there are pros and cons to
both systems. The Massachusetts system is complex and involves multiple
insurance companies and departments, while the New Hampshire system is broader
and involves fewer insurance issues. Both have their benefits, and both have
their drawbacks.
Here at
Parnell & McKay, we pride ourselves on our knowledge of insurance law, and
how to utilize that knowledge to maximize the benefits to our clients in any
injury case. If you are injured, please contact us today to schedule an
appointment. Consultations are free.
This blog is not legal advice, and is just a general summary of law.
You are not to rely on any statements in this blog in relation to your pending
case or cases. This blog does not establish an attorney-client relationship,
and shall not be construed to do so. If you have specific legal questions,
please contact us as your individual case requires individual analysis and
review.
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