If you’ve been injured in a car accident or another type of incident, one of your first questions is probably: “Who’s going to pay for all of this?” Between medical bills, lost wages, and other expenses, the financial toll can be overwhelming. The answer depends on a few factors as a personal injury lawyer can explain — especially the types of insurance coverage involved and who’s at fault.
Below, we’ll break down the basics of liability and compensation in personal injury cases, so you know your rights and what to expect.
The Basics Of PIP, Bodily Injury, And UM Coverage
Certain states are no-fault states, which means your own insurance pays for your medical bills — at least at first. Here’s a quick breakdown of the key coverages as explained by our friends at Mickey Keenan P.A.:
PIP (Personal Injury Protection)
Every driver in certain states is required to carry PIP coverage, which typically covers up to $10,000 of your medical expenses and lost wages, regardless of who caused the accident. It’s meant to get you immediate care without waiting for fault to be determined.
But here’s the catch: PIP usually doesn’t cover everything, and it won’t pay for pain and suffering.
Bodily Injury (BI) Coverage
Bodily Injury Liability is coverage the at-fault driver may have. If someone else caused your injuries and they have BI coverage, it can help pay for your medical costs, lost income, and pain and suffering.
Certain states don’t require drivers to carry BI coverage, but many do. If the at-fault party has it, this is where your attorney will look to maximize your compensation.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
This is your own policy that kicks in if the person who hit you doesn’t have enough insurance — or any at all. UM coverage is optional, but a lawyer will always recommend having it. It can be a lifesaver if the other driver can’t cover your damages.
How Liability Affects Your Financial Recovery
Liability is just a fancy word for “who’s responsible.” In some states, if someone else’s negligence caused your injuries, you can seek compensation from them — or their insurance.
But here’s where it gets tricky: certain states now follow a modified comparative negligence rule. That means if you’re more than 50% at fault, you can’t recover any compensation. If you’re 50% or less at fault, your recovery is reduced by your percentage of fault.
Example: If your total damages are $100,000 and you’re found 20% at fault, you could still recover $80,000.
That’s why having an experienced personal injury attorney matters — they work to minimize your share of fault and pursue every available source of compensation.
Making Sure You Don’t Get Left Paying The Bills
Between hospital visits, follow-up care, physical therapy, and time off work, costs add up fast. Relying on PIP alone won’t cut it for most serious injuries. And if you don’t act quickly, you could end up stuck with bills that aren’t your fault.
Here’s how to protect yourself:
- Get medical attention right away – this helps your recovery and documents your injuries.
- Don’t accept a quick settlement – insurance companies often lowball early offers.
- Talk to a personal injury attorney – they help you understand your rights and fight for full compensation.
Reach Out For A Consultation
Lawyers have helped countless people across the nation get the compensation they deserve after an accident. If you’ve been injured and aren’t sure who’s going to pay the bills, you don’t have to figure it out alone.
Call a lawyer near you today for a consultation, and talk about how they can help you move forward.
