Using Your Own Insurance to Handle Expenses during an Injury Claim

Bills can start to come in during the personal injury claims process before the case settles, leaving some claimants to panic about how they will meet their financial obligations.

But you may utilize your own insurance policies to meet obligations in the meantime. This includes using your own car or health insurance. If your insurance doesn’t cover all of your costs, you may look into pre-settlement funding.

Relying on Your Own Car Insurance

Colorado is an at-fault state, meaning the person responsible for the accident must pay for damages through his/her auto insurance; but waiting for a settlement can take time.

If you opted for medical payments coverage it can cover medical bills up to policy limits. This often allows quicker payment than going through a third-party insurance claim against the at-fault party. It may even allow you to avoid co-pays and deductibles.

Health Insurance Can Help

Health insurance can help cover medical care and treatment in the meantime. This requires meeting the deductible and making co-payments, however. Of course, you may recover any out-of-pocket expenses in the personal injury case. Once the claim settles, the health insurer will look to recover compensation from the settlement to cover its expenses.

Further, in some circumstances healthcare providers will put accounts on hold during the claims process and then seek payment once you settle the injury case. Ask healthcare providers about this option.

Pre-settlement Funding

If your auto and/or health insurance doesn’t provide adequate coverage of your bills or you have other expenses not covered under your policies, pre-settlement funding is another option to explore.

You receive a cash advance that is repaid once the claim settles. Keep in mind that it may tack on hefty fees and interest. This provides protection to the company offering the funds since monies don’t have to be paid back if the settlement is less than anticipated or you don’t win the personal injury case.

Account for All Damages in a Personal Injury Claim

Because of the concerns regarding the payment of medical bills and other accident-related expenses, it’s tempting to settle a claim as quickly as possible. But doing so prematurely could cause you hurt financially.

Until you know your diagnosis or have a good understanding about the impact of the injuries – such as future medical care that may be necessary or additional missed time from work – it’s better to wait. An attorney can help determine the effects of an injury not only financially but physically and emotionally as well. Actual costs aren’t the only consideration in a personal injury claim.

It’s also important to take into account other damages such as:

• pain and suffering;
• permanent disability; and
• mental anguish.

When injuries are serious, negotiating with the insurance company is best done with the assistance of legal representation. If you’re pursuing an injury claim in the Aurora area or you’re thinking of doing so, talk to attorney D.J. Banovitz about your questions and concerns. Call (303) 300-5060 to set up an appointment.