The rule in most states
In a majority of the states, the person who has been found responsible for a specific accident gets held liable for covering the costs associated with any accident-linked injuries. Since few people can afford to come up with that much money, the car insurance company of the responsible party must cover all the medical expenses.
Each insurance company seeks proof of negligence on the part of any policyholder that has been held responsible for causing a given accident. Once the insurer has been convinced that the named policyholder did indeed cause the reported accident, then the insurance company provides the required compensation, or court ordered judgment.
When does the insurance company pay compensation, and when does it pay a court ordered judgment?
If negotiations between the injured party and the insurance company end with a settlement, then the injured party receives a compensation package. If there is no settlement, and the case proceeds to the litigation stage, then the amount of money that must be paid to the injured party has been established by a court ordered judgment.
That court ordered judgment would reflect a decision by a judge or jury. A judge or jury would have issued the relevant decision at the conclusion of a scheduled trial, one that was held in a civil court.
What elements of proof must be presented, in order to establish negligence on the part of the defendant(the responsible party)?
• Proof that the defendant has duty of care towards the plaintiff
• Proof that the defendant did not follow through the duty of care
• Proof that the plaintiff suffered measurable losses, as a result of the accident
• Proof that the damaging losses suffered by the plaintiff were caused by the defendant’s breach
The rule in no-fault states
Drivers carry no-fault insurance, which is often referred to as PIP protection (Personal Injury Protection). The coverage for the expenses associated with any injury comes from the insurance company that has provided the hit driver with the policy that has the PIP option. That rule applies to any case where the reported injuries have been less than $5,000.
In cases where the cost for the injuries has exceeded $5,000, the person who must pay the medical bills has the right to sue the opposing party, the one that caused the injury-linked incident. Hence, the at-fault driver must handle the burden created by all of the injury-linked medical bills.