If you’ve been in a vehicle accident, you know how stressful the situation can be. Especially if you are physically injured, an accident can be mentally and physically painful, overwhelming and frustrating.
What makes the process even more confusing and intimidating is that one of the first things you will need to do is contact the proper insurance companies and make a claim to recover for the property damage to your vehicle, your medical bills, and your pain and suffering. Insurance companies want to pay the least amount possible, so it is very important that everyone involved in a car accident is fully informed of their right to recovery. Make sure you contact a local attorney to make sure your rights are protected.
Like most people in North Carolina, you probably have your own car insurance and health insurance that can cover the medical bills from the treatment for the injuries you received in the accident. What happens if your health insurance pays for some or all of your medical bills after a car accident? Can you receive from the driver who hit you the full amount of the bills, or just the amounts that your insurance did not cover? Under North Carolina’s “collateral source rule,” the amount of damages that you can receive from the other driver is not reduced by any amounts received by a third party.
Here is an example of how North Carolina’s collateral source rule works: you are involved in a motor vehicle accident. You suffer injuries as a result and you incur medical bills in the amount of $50,000. Your health insurance pays $25,000 of these bills. Under North Carolina’s collateral source rule, you can collect the total $50,000 from the other driver, not just the $25,000 that your health insurance did not pay.
Additionally, in the case of Hairston v. Harward, the North Carolina Supreme Court recently decided that this rule also applies to the uninsured/underinsured motorist benefits. Here is an example of how this would work: Let’s say you were injured in a motor vehicle accident and your medical bills and property damage total $300,000. The other driver’s insurance policy has a limit of $200,000. After trial, the jury awards you the full $300,000, but you can only get $200,000 of that from the other driver’s insurance. You also have an underinsured motorist policy that will cover the remaining $100,000. Under North Carolina’s collateral source rule, you are able to demand the whole $300,000 from the other driver, even though your policy covered $100,000 of the damages.
The rules in North Carolina regarding your rights to recovery after a motor vehicle accident can be confusing, and it is very important that you hire an experienced attorney who understands the rules and can ensure that you receive the full amount of damages you are entitled to under the law. The experienced, skilled personal injury attorneys at the Tran Law Firm are here to guide you through every step of the way. Contact us now for a FREE personal injury consultation and let us help you get the settlement you deserve! You don’t pay us unless you get paid.
Drafted by Suzanne McArdle, Esquire
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