Expert: Claims Guy - 3/26/2011

Question
I am a little confused about the difference between bodily injury liability/property damage liability (BI/PD) and medical payments. I think that BI/PD pays for any damage the insured does to another vehicle, people in it, property damage or hitting pedestrians. I think that medical payments covers everybody riding in the insured's car if the insured does something to cause injury to the passengers in their car, such as a roll-over on an icy road (with no other vehicles involved). It goes without saying that if someone else is at fault for the accident, they are financially liable. But wouldn't your BI/PD cover any passenger injury as a result of the insured's actions (i.e. a roll-over)? To me, it seems that medical payments are unnecessary. They are not mandatory in CO.

So let's say my family is covered by medicaid, and we have a friend in the car and roll-over (for example). Wouldn't medicaid and/or my (the insured's) BI/PD insurance pay for us? Wouldn't our BI/PD insurance pay for our friend's injuries?

Answer
I think that BI/PD pays for any damage the insured does to another vehicle, people in it, property damage or hitting pedestrians. THIS IS CORRECT, BUT ONLY IF THE INSURED DRIVER WAS NEGLIGENT.

I think that medical payments covers everybody riding in the insured's car if the insured does something to cause injury to the passengers in their car, such as a roll-over on an icy road (with no other vehicles involved).   CLOSE.  MED PAY COVERS MEDICAL BILLS FOR ANYONE INJURED IN THE VEHICLE, REGARDLESS OF FAULT.

It goes without saying that if someone else is at fault for the accident, they are financially liable. But wouldn't your BI/PD cover any passenger injury as a result of the insured's actions (i.e. a roll-over)?  CORRECT - THE KEY IS WHETHER THE DRIVER WAS NEGLIGENT.  IT ALSO APPLIES TO PASSENGERS INJURED DUE TO DRIVER'S NEGLIGENCE.


To me, it seems that medical payments are unnecessary. They are not mandatory in CO.  TRUE, IN SOME CASES THE COVERAGE IS DUPLICATIVE.  THIS SOMETIMES ALLOWS PEOPLE TO PROFIT FROM AN ACCIDENT.

So let's say my family is covered by medicaid, and we have a friend in the car and roll-over (for example). Wouldn't medicaid and/or my (the insured's) BI/PD insurance pay for us? Wouldn't our BI/PD insurance pay for our friend's injuries?  MEDPAY WOULD COVER EVERYONE IN THE VEHICLE FOR MEDICAL BILLS ONLY.  BI COVERAGE WOULD DEFEND THE NEGLIGENT INSURED DRIVER AGAINST LIABILITY CLAIMS OR LAWSUITS FOR INJURIES THAT HE/SHE CAUSED TO OTHERS, INCLUDING PASSENGERS.  THIS WOULD COVER THINGS THAT MEDPAY DOES NOT COVER, LIKE PAIN, SUFFERING, AGGRAVATION, INCONVENIENE, LOST WAGES, LOST CONSORTIUM, ETC., IN ADDITION TO THE MEDICAL BILLS.