Medical coverage on car insurance...read the fine print!
 

My lawyer just informed us that my car insurance has given up their right to subrogation.

Meaning they will not ask to be repaid the $25,000, in medical bill they paid, from my settlement. My private health insurance is another story.

I did not know that the medical coverage I pay for through my car insurance can demand all the money they paid out and it would come from our settlement. The lawyer said that is always in fine print.

So if I had a million in medical coverage through car insurance my medical costs were a million and won a million $ settlement I could get zero after everything is paid.

This is really backwards. What about people that need MAJOR lifetime care?

Am I confused or does this seem wrong.

Why get medical coverage through car insurance if you have private medical insurance?

Jace

Hey Jace,

I depends what State you're in, several years ago some States changed it's law where the insurance company does not get paid back the medical bills they paid, mine is called MedPay, up to $25,000.

The argument was that when someone pays extra to be covered by MedPay it shouldn't come out of a settlement and paid back, you're paying extra for it.

I was told the MedPay through the car insurance pays the bills pretty quickly, ER visit, ambulance etc, so you don't have to worry about them piling up.

Basically if it's not a State where you don't have to pay it back, it's just a loan, to get those bills paid.

I think it is *** backwards.

Yes, do beware of all the fine print gobbledygook details that we are never informed up-front about, only after we need to call it into play, or even after we have.

It can be a devastating rude awakening after all the legal ordeals and the stress and trauma of that.