How to Save Money on Medical Bills After a Car Accident

After being injured in a serious car crash, you can expect your medical bills to pile up fast. For instance, some bills can exceed $10,000 and get as high as $100,000 or more, depending on the circumstances. Even after insurance pays their part, many people are still left with thousands of dollars they can’t pay, forcing them to file for bankruptcy. 

 

In this article, we’ll explore some of the best ways to fight back against high medical bills, get as much covered as possible, and avoid drowning in medical debt.

 

  1. File a personal injury lawsuit

 

If you’ve been watching your medical bills pile up without much help from insurance, filing a personal injury lawsuit will be your best leverage against excessive medical debt. According to statistics, the average car accident settlement is $37,248, and truck accident settlements can hit six figures. Although settlements vary by case, they often cover more than just medical bills. For instance, many people recover non-economic damages, like pain and suffering.

 

If you’ve got stacks of medical and even household bills piling up, don’t ignore your right to file suit. If you try to settle with an insurance adjuster on your own just to speed things up, you’ll get lowball offers that don’t come anywhere near the true value of your case. Ultimately, car accident settlements are worth pursuing because lawyers are experts at pressuring insurance companies to settle fairly to avoid going to trial.

 

  1. Consider your Personal Injury Protection (PIP) insurance

 

In some states, PIP is mandatory, and if you have this form of coverage, it can cut your medical costs drastically. Typical coverage ranges from $2,500 to $25,000. PIP insurance kicks in immediately to cover ER visits, ambulance rides, and even dental and chiropractic care, regardless of fault. This means you won’t have to wait until fault is determined by a court in order to start getting treatment.

 

Certain PIP plans also cover lost wages if you can’t work for a while. This relief can help prevent household bills from piling up, avoiding utility and other service shut-offs. PIP can also stack with your existing healthcare coverage to bridge the gap between bills while you wait for your lawsuit to settle.

 

  1. Negotiate your bills

 

Never accept a medical bill as it’s given to you. There’s a good chance it’s higher than it should be, and healthcare providers are usually willing to negotiate. The first thing you should do is double check every line item to verify the bill is accurate. Contest any random charges or services you never received before agreeing to pay anything. From there, ask for payment discounts. Many facilities offer between 20% and 50% off if you can pay within two months or show proof of financial hardship. In any case, it never hurts to ask.

 

If you don’t feel comfortable negotiating your own bill, use a medical billing advocate. They’re known to drop charges by up to 70% because they understand billing codes and how insurance companies work.

 

  1. Check all of your insurance coverage

 

If you have multiple insurance policies that will provide coverage, use them strategically. For example, use your PIP coverage for ER visits and other urgent costs. Then start using your main health insurance plan. However, don’t wait to pursue reimbursement. Some health plans have strict deadlines that can be as short as one year.

 

If the at-fault driver doesn’t have enough insurance coverage, that’s where you’ll use your underinsured/uninsured motorist policy to cover your bills without having to go to court first. Last, no matter how you stack your coverage, keep detailed records of which policy pays for what expense. This will help you identify unpaid bills before they go to collections.

 

  1. Be cautious about pre-settlement loans

 

There’s a chance you might be tempted to take a pre-settlement loan. While these loans can offer immediate relief, the fees aren’t cheap. Try to negotiate your debts first, and if you can’t get a good deal, look at a pre-settlement loan. They can be helpful, but the fees are only worth it when you absolutely need the money immediately. Otherwise, it’s better to negotiate and wait for your settlement money.

 

Pursue the compensation you deserve

 

Getting injured in a car accident can produce big medical bills, but you don’t have to go into debt. Leverage the help of a personal injury attorney, additional insurance policies, and negotiate with your providers. It’s the best way to avoid extensive medical debt that can lead you into bankruptcy.