Who Pays Your Medical Bills After a Car Accident in a No-Fault State?
A car accident can turn your life upside down in an instant. One moment you're running errands or heading to work, and the next, you're in pain, confused, and unsure of what to do next. It's overwhelming.
The stress of physical injuries, emotional trauma, missed work, and questions about how you're going to pay your medical bills can feel like too much to carry. And if you’re in a no-fault state, things can be even more confusing—especially when it comes to figuring out who is responsible for paying those bills.
At the Law Office of Frederick K. Wilson II, I work closely with clients in Houston, Texas, and the surrounding areas, including Sugar Land, Missouri City, and the Greater Houston Metro area, to help them take the next steps after an accident.
If you're trying to understand how your medical bills are covered after a crash in a no-fault state, I'm here to give you clear answers and practical guidance based on real experience. Reach out to me today if you’ve been hurt in an accident and want to talk about your legal options with an experienced car accident lawyer.
What Does It Mean to Be in a No-Fault State?
In a no-fault state, every driver must carry personal injury protection (PIP) coverage as part of their auto insurance. After an accident, each person turns to their own insurance to pay for medical expenses—regardless of who caused the crash.
This is different from traditional “at-fault” or “tort” systems, like in Texas, where the driver who caused the accident is generally liable.
If you're driving through or living in a no-fault state when an accident happens, the rules are different than what you may expect if you're used to Texas law. That can be especially frustrating when you're trying to get care quickly and figure out who's paying the bills.
Who Pays Your Medical Bills in a No-Fault State?
If you're in a no-fault state at the time of your accident, your personal injury protection (PIP) insurance is the first line of payment for medical expenses. This applies no matter who caused the accident. Here's how the process typically works.
Your Personal Injury Protection (PIP) Insurance
PIP coverage is designed to cover your immediate medical needs following a car accident. Depending on the policy limits, it can also help with:
Lost wages
Funeral expenses
Rehabilitation costs
Essential services (such as help with house cleaning if your injuries prevent you from doing daily tasks)
PIP doesn't cover pain and suffering, but it helps reduce the financial pressure of an accident by quickly covering out-of-pocket medical bills.
What If Medical Costs Exceed PIP Limits?
In many cases, especially when injuries are severe, PIP coverage runs out quickly. Once you've reached your policy limit, you'll need to consider other options.
Additional Sources of Medical Bill Payment
If PIP is exhausted or not enough, here’s where else your bills might be covered:
Your health insurance: Your private or employer-provided health insurance may kick in once your PIP is exhausted.
Medical payment coverage (MedPay): Optional in many states, MedPay works like PIP but typically has lower limits and may supplement it.
Lawsuit against the at-fault driver: In some no-fault states, if injuries are serious enough, you can step outside the no-fault system and file a claim or lawsuit against the person who caused the accident.
Uninsured/underinsured motorist coverage (UM/UIM): If the other driver doesn't have enough insurance, your own UM/UIM coverage may help pay for your injuries.
When you're trying to recover physically, the last thing you want to worry about is who's going to pay for your care. If you're dealing with multiple insurance policies, subrogation claims, or medical liens, that’s where I step in to help.
Exceptions That Let You Sue the At-Fault Driver
No-fault states limit lawsuits for minor injuries, but if your injuries are severe, you may be able to step outside of the no-fault rules and pursue compensation from the driver who caused the crash.
Qualifying for an Exception
Each no-fault state has its own thresholds, but common examples include:
Permanent disability or disfigurement
Significant loss of function
Medical expenses exceeding a certain dollar amount
Long-term or permanent injuries
If your case meets one of these criteria, you may be able to recover damages for pain and suffering, future medical bills, and other losses through a personal injury claim.
Before deciding whether to pursue a claim, I always carefully review the relevant state laws and the severity of my client's injuries.
How Your Health Insurance Comes Into Play
Once your PIP or MedPay benefits are exhausted, health insurance is often the next line of defense. But that doesn’t always mean smooth sailing.
A few things to watch for when health insurance kicks in include:
Copays and deductibles: Even with insurance, you may have to pay out-of-pocket expenses up front.
Out-of-network providers: Emergency services might not always be in your insurance network.
Subrogation claims: If your health insurer pays your bills, they may want reimbursement from your settlement.
If you’re receiving letters from health insurers requesting reimbursement or are unsure which bills should be covered by a settlement, I can help clarify your rights.
What Happens If You’re Injured in a No-Fault State but Live in Texas?
This is something I see often, especially with clients who were traveling out of state when the accident happened.
Key things to know include:
Out-of-state policies may have clauses that adjust your coverage to meet the legal requirements of the state where the accident happened.
You may still have PIP coverage if it was part of your Texas policy, even though Texas is an at-fault state.
Filing a claim can be complicated because more than one state’s laws may apply, depending on where the accident occurred and how insurance policies are written.
In these situations, I thoroughly examine each insurance policy, identify the applicable state laws, and guide clients on the best strategies for handling medical bills and securing compensation.
How I Help Clients With Medical Bills After a Car Accident
Paying for medical treatment is often one of the first and biggest concerns people have after a crash. Here’s how I help clients make sense of their options and avoid paying more than they need to as a car accident lawyer:
Review insurance policies: I go through auto and health policies to understand what’s covered and what’s not.
Coordinate medical billing: I communicate with doctors and hospitals to delay billing or reduce balances while a claim is pending.
Negotiate medical liens: If a healthcare provider places a lien on your injury settlement, I negotiate to reduce the amount you owe.
File insurance claims: I handle communications with the insurance companies so you can focus on healing.
Pursue legal claims: If your injuries qualify for a lawsuit outside the no-fault system, I will fight for compensation.
If you’re overwhelmed with bills, unsure who’s supposed to pay, or getting calls from collectors, don’t wait. The sooner we talk, the more I can do to help protect your financial and legal rights as your trusted car accident lawyer.
Contact an Experienced Car Accident Lawyer for Help
Whether you're dealing with insurance red tape or trying to figure out how your medical bills will be paid after a crash in a no-fault state, I’m here to help you get answers—and peace of mind. As a car accident attorney, I’ve helped clients across Houston, Sugar Land, Missouri City, and throughout the Greater Houston Metro area, and I know what it takes to move forward after an accident disrupts your life.
You don’t have to handle this on your own. The Law Office of Frederick K. Wilson II is ready to stand by you, answer your questions, and make sure you know your options. If you’ve been hurt and are struggling with medical bills, don’t wait. Reach out to me today for a free consultation and get the help you need to protect your health, your finances, and your future.