PIP

PIP” stands for “personal injury protection.” No-fault auto insurance states require their motorists to carry PIP insurance, which covers injured parties regardless of fault. PIP insurance is unavailable in Illinois; however, Illinois does offer a form of optional no-fault insurance called MedPay. 

MedPay covers medical bills after an accident, no matter whose fault the accident was. This form of insurance can be beneficial to drivers in Chicago, the site of tens of thousands of car accidents every year.

Fault vs. No-Fault Auto Insurance 

Fault vs. No-Fault Auto Insurance 

States apply one of two systems of car accident compensation – “no-fault” and “at-fault.” Most states, including Illinois, apply the at-fault system, but about a dozen states apply the no-fault system. 

How ‘No-Fault’ Insurance Works

Under the no-fault system, PIP insurance is mandatory, and injured parties turn to their own insurance first for car accident compensation no matter who was at fault. Only under certain circumstances can an injured party in a fault state seek compensation from the at-fault driver or their insurance company. 

How At-Fault Insurance Works

Under the at-fault car accident compensation system, you can immediately seek compensation from the at-fault party. There are two ways of doing this. You can file a third-party claim against their liability insurance carrier or a personal injury lawsuit directly against the at-fault party. Either way, an insurance company will probably pay at least part of your claim.  

Who Does Illinois MedPay Cover?

MedPay will cover your:

  • Medical Expenses
  • Ambulance Fees
  • Funeral Expenses
  • Rehabilitation and Therapy Expenses
  • Dental Care

MedPay has a reputation for prompt payment. This makes it an excellent option for quick relief when you suffer unexpected medical bills due to an accident.

Who Does MedPay Cover?

MedPay doesn’t just cover your own expenses. It also covers:

  • Your Passengers: Regardless of whether they are relatives or members of your household.
  • Family Members in Your Household: You will have an opportunity to list family members in your household on your policy. MedPay covers them even if they are driving the car or if they are a passenger in another vehicle. 
  • Pedestrians: Pedestrians who were injured in an accident will also have access fo MedPay coverage.

In all of the above cases, fault is irrelevant to coverage.

Limitations

MedPay will not cover your non-economic damages, such as emotional distress or pain and suffering. It will not cover your out-of-pocket expenses such as travel expenses, child care, or household services that may arise due to your injuries. It will not cover many forms of economic damages, such as lost earnings while you are in the hospital or at home recovering. Finally, it will not cover punitive damages.

Policy Limits

Policy limits depend on the terms of your policy. Insurance companies offer MedPay with coverage limits ranging from $1,000 to $50,000. Some insurance companies may offer even more coverage. Read your policy carefully. The Illinois state government does not mandate coverage limits. 

Deductibles

There is no deductible on MedPay. MedPay will pay 100% of your medical bills, up to policy limits. 

Illinois Mandatory Insurance

Illinois requires all drivers with cars registered in the state to carry the following minimum liability insurance: 

Bodily Injury Liability: Expenses arising from the injury or death of a driver, passenger, or pedestrian, if the accident was your fault. It covers passengers in your car. Coverage is $25,000 per person up to a cumulative total of $50,000 per accident. If five passengers suffer serious injury, for example, your liability insurance will pay only $50,000 total, even if each passenger receives less than $25,000 for medical bills that exceed $25,000.

Property Damage Liability: Damage to someone else’s property including vehicles, fences, buildings, utility poles, signs, and trees. Cumulative coverage is $20,000 per accident.

Other Forms of Coverage

Other forms of optional insurance coverage are available. They include uninsured/underinsured  motorist insurance, collision insurance, comprehensive coverage, gap coverage, and other forms of insurance.

If you have been injured in a car accident, you might need to speak with a Chicago car accident attorney regardless of whether you carry a different form of coverage or MedPay. Although there can be no guarantees, an experienced attorney can help you receive the full value of your car accident claim. Contact our law firm at Zayed Law Offices Personal Injury Attorneys at (312) 726-1616 to schedule a free consultation.