Title: Car Accident and Health Insurance Confusion
I’m feeling a bit overwhelmed trying to navigate the information online (I know, not the best source for advice, but I’m at a loss for who to ask).
Two months ago, I was involved in a car accident where I was at fault for rear-ending another vehicle. I sustained injuries and went to the hospital, where I was informed that they would bill my auto insurance (Progressive) first and then my health insurance (Anthem) if necessary. However, it seems they only billed my health insurance, which ended up covering the entire bill (aside from my copay).
Now, my auto insurance has sent me a check intended for the emergency room that exceeds what I owe. What should I do? If I use the check to pay my copay, will my health insurance reverse their payment? Conversely, if I choose not to use the check for payment, should I simply return the check?
I reside in New Hampshire. I appreciate any guidance!
Bonus question (not sure if it fits here): Progressive has also sent me a check for the minor cosmetic damages to my car. Since I have a loan on the vehicle and the check is made out solely to me, am I required to use this money to repair the car?
It sounds like you’re dealing with a complex situation after your car accident, so let’s break it down step by step.
Health Insurance Payment: Since your health insurance (Anthem) paid the ER bill in full, the auto insurance (Progressive) should have billed them first. The check you received from Progressive indicates they are ready to cover what they owe regarding your medical expenses. If you use the check to pay your copay, there’s a chance that Anthem could reverse the payment they’ve made if they find out that your auto insurance should have been the primary payer. To avoid complications, you may want to call both Anthem and Progressive to clarify the situation. Explain what happened, and ask if returning the check or negotiating the payment with the ER is an option.
Returning the Check: If you choose not to use the check to pay your copay, you can likely send it back to Progressive. Check their instructions for returning checks; they should be able to guide you on how to do this to avoid any potential issues.
Car Repair Funds: Regarding the check from Progressive for the car damage, if the check is solely made out to you and you have a loan on the vehicle, you are not legally obligated to use the funds specifically for repairs, but it’s generally a good idea to use the money for that purpose. If you don’t repair the car, you may end up with issues when you go to sell or trade it in later. Additionally, consult with your loan company, as they may have guidelines on what you should do with insurance payouts for repairs.
In short, the best course of action is to communicate with both your health insurance and auto insurance regarding the medical payments. For the check related to the car repairs, while you have some flexibility, using it for repairs is advisable to maintain the car’s condition and avoid any potential loan issues.