Why My Insurance – How First Party Insurance Works in PA

If you’ve been injured in a car crash caused by someone else, you expect the at-fault party’s auto insurance to pick up the tab for everything, from your damaged vehicle to lost wages and, most importantly, your medical bills. But if you’ve been unlucky enough to find yourself as the victim of another driver’s negligence, you’ve learned that is not quite how auto insurance in Pennsylvania works.

After a car crash in which you have sustained injuries, your own auto insurance pays medical bills first.

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What Are First Party Medical Benefits?

First Party Medical Benefits , also known as personal injury protection (PIP) or “no-fault” coverage, is the coverage on your auto policy that pays for the initial medical bills after a car crash, is a mandatory coverage in Pennsylvania. That means the policy must include a minimum of $5,000 of first-party medical benefits when purchasing auto insurance in Pennsylvania. You can increase the First Party Medical Benefits from the minimum of $5,000.

Not  sure what kind of coverage you have? Look at your Declarations Page and find the “First Party Benefits” section, then identify the line item for Medical Expenses. The amount listed will be $5,000 or more. Our website has a guide to selecting auto insurance, along with recommended coverages.

These funds pay for medical bills from the moment treatment occurs after a car crash. By law, medical providers must bill at a lower rate than usual for treatment related to a car crash. If your treatment does not involve a large surgery or hospitalization, First Party Medical Benefits often last for a long time and can end up paying for most (or all) of your incident-related treatment.

If your medical bills exceed the amount of first-party medical coverage (i.e., you had to stay in the hospital for a week, and the hospital bills $30,000), your health insurance (if you have it) kicks in next and pays any additional balances/bills. Any penny you pay out of your pocket towards medical bills (including any copays or deductibles) will become a damage in your personal injury case and can be collected from the at-fault party’s auto insurance.

Takeaways

• When you’ve been injured in a car crash, your own auto insurance pays medical bills first.  
• Confirm the amount of coverage you have by checking the Declarations Page of your Auto Insurance.
• Double-check medical bills after a car crash to make sure your auto insurance is paying the bills until the amount you selected has exhausted.

Dealing with insurance claims can be complicated. Let our team handle the paperwork while you focus on recovery. Get in touch for a free consultation.

But Why Does My Insurance Pay Before The At-Fault Party’s Insurance?

It seems counterintuitive that your auto insurance pays bills first when they arose out of someone else's fault.

The Pennsylvania Motor Vehicle Financial Responsibility Law, the law that dictates all things auto insurance in PA, ensures that any injured person can seek medical treatment in the aftermath of a car crash, regardless of fault or whether or not they have health insurance.

In the event of a car crash in which fault is unclear, having “no-fault” First Party Medical Benefits ensures that an injured party can seek necessary medical care, knowing that their own auto insurance will pay for the treatment, regardless of who ultimately is determined to be at fault for the car crash.

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Edgar Snyder & Associates Can Help You

Let us handle your car accident case. Contact our team, and we will take care of managing your First Party Medical Benefits and help you get the compensation you deserve.