Another driver's insurance admitted fault and settled for an amount. I had to pay medical bills out of settlement and my own insurance p.I.p. paid. Why did the at fault driver not pay pip payments? Can I sue to get some of my settlement funds that I would not have had to make if the p.I.p. of the at fault driver had paid?
1 Answer from Attorneys
PIP coverage has nothing to do with fault or liability and only covers a small amount (usually $2500 or $5000) of medical bills for the driver and passenger in your own car. It is not designed to take the place of compensation from the at-fault driver but to quickly offer a way to get immediate bills paid regardless of fault.
When settling with the at-fault driver, the settlement amount should include all expenses, including medical bills. While each settlement agreement is unique, generally speaking once an agreement is signed any and all claims and all rights to sue are typically waived. This illustrates how important it is to get competent legal advice before signing any release or settlement agreement.
While I hope that this general information offers some help it is not designed as legal advice for the specifics of your situation.