How Are Medical Bills Paid after a Car Accident in Texas?

Being in a car accident puts many people in a vulnerable position. After dealing with the initial shock of the event and coming to terms with the painful injuries you’ve sustained, you might get slapped with a hefty sum for medical care. If your injuries have left you unable to work while you recover, you might be concerned about how you can afford your medical bills.

But how are medical bills paid after a car accident in Texas? Are you responsible for paying for them? We explain your rights so you know where you stand.

Common Medical Bills after an Auto Accident

The cost of medical treatment after an accident in Texas can vary.

Medical expenses car accident victims can often expect include:

• Emergency room treatment
• Hospital treatment
• Surgery
• Lab fees for tests
• Physical therapy and rehabilitation
• Prescription medications
• Pain management
• Prosthetics
• Mobility aids
• Follow-up doctor’s appointments
• Occupational therapy
• Transport to and from appointments.

The National Highway Traffic Safety Administration puts the average medical bill after a car accident at $15,000, but severe injuries that require lengthy — or even lifelong — treatment can significantly drive up this number.

Let’s consider the two extremes:

If you’re in a car accident and sustain minor injuries, such as cuts and bruises or a mild concussion, you might expect to pay between $2,000 and $5,000 for emergency room treatment, tests, and follow-ups. You’re unlikely to need substantial aftercare, such as physical therapy.

If your car accident results in severe, even life-changing, injuries, like a traumatic brain injury, spinal cord injury, or amputation, you can expect your medical bills to cost $100,000 or more. For example, if you suffer a spinal cord injury that leaves you paralyzed, you will likely need long-term care, rehabilitation for the rest of your life, and assistive devices installed in your home.

What Are Your Options for Paying Medical Bills after an Accident?

When it comes to how medical bills are paid after a car accident, you have several options:

• Auto insurance
• Health insurance
• Personal injury claim

Auto Insurance

In the U.S., states either assign fault or don’t. The majority of states — including Texas — are “fault” states, meaning all drivers must carry liability insurance. So, if you’re in a car accident in Texas, the person responsible — or at fault — is required to cover the expenses of anyone injured as a result.

These expenses — which include lost wages, medical bills, and property damage — are covered by the at-fault driver’s insurance company. Under Texas insurance laws, a driver’s liability insurance will pay up to $30,000 per person and $60,000 per accident in medical expenses, but this figure can be higher if a driver has taken out additional coverage.

In no-fault states, all drivers are required to carry a type of insurance called Personal Injury Protection (PIP), which covers medical bills and a portion of lost wages if they’re injured in an auto accident. While not relevant to Texans, you may have this type of insurance, and it can provide an additional route for paying your medical bills after a car accident, so it’s worth mentioning here.

In Texas, all auto insurance companies include personal injury protection (PIP) in their policies by default. Unless you explicitly stated in writing you did not want PIP when taking out your policy, you likely have this insurance — possibly without realizing it. PIP can be valuable even if you have health insurance, as a serious accident may not be covered under a traditional policy. PIP also covers a percentage of your lost income if you cannot work.

Health Insurance

If you have health insurance, you may be able to use it to cover the immediate, upfront costs of your medical bills.

You should speak to your insurance provider as soon as possible. It’s vital to file a claim promptly, as delaying the process could raise questions about the credibility of your claim or prevent you from claiming entirely. Many insurers have specific time limits, so missing a deadline could result in denied coverage.

You should also inform your insurer if the accident was not your fault — they may be able to pay your medical bills and then recover the amount from the other driver’s insurance company (known as insurance subrogation).

File a Personal Injury Claim

If you weren’t responsible for your car accident in Texas and you’ve taken the appropriate steps afterward (such as seeking medical treatment and documenting how the crash happened and the injuries you sustained), you may be entitled to file a personal injury claim. A car accident lawyer in San Antonio or McAllen can help you determine how much compensation you’re entitled to and make sure it’s enough to cover all your damages.

As part of your claim, we can seek full reimbursement for your medical costs, along with additional damages to compensate you for actual (financial) losses and the impact of your accident on your life. These damages can include:

• Lost wages
• Diminished earning capacity
• Pain and suffering
• Mental anguish
• Loss of enjoyment
• Loss of companionship
• Loss of consortium.

How Are Medical Bills Paid in Texas?

Now you know who might pay your medical bills, but how are they paid? The payment process can vary depending on which party is covering your expenses.

Direct Payment from the Insurance Company

Whether you have insurance coverage or the at-fault party’s insurer accepts responsibility for your injuries, the insurance company may pay your healthcare providers directly.

Insurance Subrogation

When you are not responsible for your accident, your insurance company may cover your medical expenses by paying the providers directly and then seek to recover the cost from the liable party.

Letter of Protection

You may be required to pay on receipt of medical treatment. This is why many accident victims do not seek medical care even when they are in severe pain — they simply cannot afford it. If your injuries are so severe that you cannot earn a living, medical treatment can quickly turn from something that is supposed to make you feel better into a major source of stress.

Unfortunately, some medical providers will refuse to accept health insurance as a guarantee of payment after a car accident because the insurer may deny coverage. This is why many auto insurance providers offer optional policies specifically for personal injury, and health insurers have dedicated packages covering injuries sustained in car accidents.

If you cannot afford treatment and your health insurer denies coverage, you may be denied the medical care you need, potentially setting back your recovery or worsening your condition.

But you have another option if you’re entitled to file a personal injury claim.

A letter of protection is a legal document issued to a medical professional or provider by your attorney that guarantees payment from a future lawsuit judgment or settlement.

This is a contractual agreement that benefits both parties:

• It protects you from the stress of not being able to afford your medical bills — and potentially having to delay treatment — so you can get the care you need and focus on your recovery.
• It protects your healthcare provider by guaranteeing payment later on.

Your medical care, then, is effectively provided “on credit.” If you receive compensation, your attorney will settle your medical bills and deduct those fees from your final compensation award.

It’s important to know that if your claim is unsuccessful — for example, if you cannot negotiate a settlement with the at-fault party and lose the case at trial — you are still responsible for paying your medical bills.

However, because most attorneys work on a contingency basis and only get paid when they recover compensation for their clients, a personal injury lawyer will likely only issue a letter of protection if you have a strong case.

Frequently Asked Questions about Who Pays for Medical Bills after a Car Accident in Texas

What if the driver doesn’t have insurance?

While all drivers are legally required to have insurance, a shocking one in eight drivers in the U.S. fail to — despite potential penalties including fines, a suspended license, and jail time.

If your health or car insurance policy won’t pay your medical bills after a car accident and the other party doesn’t have insurance, you may have another option.

You can file a complaint with the Texas Department of Public Safety (DPS) to hold an uninsured driver accountable. The DPS can help you recover damages and suspend the driver’s license so they can’t put other innocent lives at risk.

However, you must meet the following criteria:

• Your car accident happened within the last 22 months.
• The accident occurred on a public highway (not public property).
• You have proof the at-fault driver didn’t have insurance (the crash report filed by police after the accident can show this).
• You can prove you weren’t partly responsible for the accident.
• You’ve suffered damages of at least $1,000.

To file a complaint, you must submit an SR-106 form with invoices and estimates detailing your losses. The DPS will pass these to the uninsured driver, who may contact you to set up an installment agreement (payment plan).

If a driver causes a crash and they don’t have insurance because they’ve stolen the car, the owner of the vehicle typically isn’t responsible (even if they have liability insurance). To pay your medical bills, you’ll need to contact your insurer.

However, if the owner of the stolen car was negligent and could have reasonably foreseen that their car would have been stolen, they may be liable for your expenses. One example is if a driver got out of their car and walked away, leaving the door open and the keys in the ignition. In this case, they could have foreseen that theft was a possibility.

What if you need to pay your bills before receiving compensation?

If an accident wasn’t your fault and you face thousands of dollars worth of medical fees for ongoing treatment and rehabilitation, it might be a welcome relief to know you don’t have to pay your medical bills for your car accident. However, you’ll inevitably have short-term bills you need to pay — such as doctor’s consultations, medication, and transportation — and some providers expect payment “upon services rendered.” Claims take time to process, and if you’re out of work, you might not have the financial means to cover your expenses.

You should speak to your insurance provider(s) to see if they can cover your bills and seek reimbursement through subrogation, but you should also consult a personal injury lawyer. Your attorney can issue a letter of protection, but they may also seek to reduce your medical bill or negotiate an affordable payment plan so you do not have to compromise on getting the treatment you need.

How are medical bills paid after a car accident that results in death?

If your loved one has died after a car accident, whether after being admitted to the hospital or after a course of treatment, they may have hospital bills outstanding. But who should pay those medical bills? In this case, medical debt is paid by the estate — the total assets owned by your loved one at the time of their death.

Texas is also one of nine community property states, meaning if your loved one was married at the time of their debt, their spouse would typically be responsible for all debts, even if they didn’t incur those debts themselves.

However, if the car accident that led to their death was caused by the negligent or reckless actions of another, there’s a chance you may be entitled to file a wrongful death claim.

In a Texas wrongful death lawsuit, you can claim damages for incurred expenses — including medical bills.

What to Do When Seeking Payment for Medical Bills after a Car Accident

If you’re entitled to file a personal injury claim, there are several steps you should take — or things you should avoid — to maximize your chances of success. Ignoring these could have a huge impact on how much compensation you receive — or limit recovery entirely.

Do Not Delay Medical Treatment

Immediately after a car accident, you should seek medical treatment, even if you feel fine and don’t even know if you’re entitled to — or even want to — file a personal injury claim. Many injuries sustained in car accidents present delayed symptoms, such as concussion and whiplash. With these injuries, you might not get symptoms until days or weeks after the incident.

If you want to file a personal injury claim, it’s doubly important to seek treatment after the accident. If you don’t, it could impact the amount of compensation you receive — or even prevent you from successfully claiming entirely. This will also affect how your medical bills are paid after your car accident.

Imagine you’re in a fender bender, and you’re a little shaken, but you otherwise don’t have any injuries, so you forget about the incident and get on with your life. The last thing you need on your plate is unnecessary medical bills!

Months later, though, you find out you need physiotherapy for a wrist injury sustained in the accident. At the time, adrenaline kicked in, and you didn’t realize you were hurt. While you might know when the injury occurred, the other party’s insurance company will try to argue that your wrist injury happened after the accident — and they might have a case. Seeking medical treatment allows you to prove when the accident occurred, and your medical records and doctor’s notes can also support your claim.

If you want to recover all of your past and future medical expenses, it’s important to attend your appointments, follow your doctor’s instructions, and get an estimate of the long-term costs of your treatment.

Do Not Accept a Settlement Right Away

The responsible party’s insurance company may offer you a settlement. While it can be tempting to accept the offer — especially if you’re under pressure to pay your bills and want your claim settled quickly — it’s rarely the best decision.

The initial car accident settlement offer will likely be much less than what you are entitled to. Insurers do this intentionally, as they are in the business of making money and want to pay out as little as possible, even if their client is grossly at fault. What typically happens is that you accept an offer, only to find later it’s not enough to cover your future bills and expenses. This can put you in a tricky financial position — especially if you accept a claim before you know the full extent of your injuries — as you’ll have to pay all future bills out of pocket. A personal injury lawyer can fight your corner and get the most money from your car accident.

Do Not Speak to Insurers without Getting Advice

Shortly after your car accident, you’ll likely be approached by an insurance adjuster employed by the other party’s insurance company to get your version of events. While they may seem concerned about your well-being, remember they are not here to help you. When they ask you what happened, they’ll be looking for any information they can use to justify offering you a reduced settlement. While in the moment, it’s easy to say, “I didn’t see them,” “If I’d have just…” and “I should have…” but an insurance company may use these statements to attribute guilt on your part.

Always remember you are under no obligation to speak to an adjuster. If you choose to, you should at least consult a McAllen or San Antonio personal injury attorney. Alternatively, your accident lawyer can handle all communication with insurance companies on your behalf.

You might have a claim for compensation if you were in a car accident caused by the negligent or reckless actions of another. Our car accident injury lawyers can help you recover payment for your medical bills or postpone payment until you receive a settlement. To get a free case review and find out what you could be entitled to, contact our Texas car accident lawyer today.