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How to Protect Your Credit After an Accident

An unfortunate side effect of being injured in a car accident is that to recover from your injuries, you may incur significant medical bills and debt. While the assumption might be that you can wait to recover damages through a settlement offer, your medical providers will probably not want to wait for their money. Therefore, before you decide to hold off paying, it is necessary to understand the risks you take by doing so, and also, how to cover those expenses, so you don’t have to worry.

Negative Impact of Unpaid Medical Bills

Unfortunately, if you choose to wait on paying your medical expenses, it can hurt your credit score. Also, depending on the extent of your injuries and continued necessary treatments, a hospital or care provider may not allow the continuation of treatment unless they are paid. Therefore, it is essential to keep up with medical costs, even if you think a settlement or judgment will cover everything later.

five Ways to Pay Medical Bills

Since it is necessary to pay for your treatments to avoid any negative actions and consequences, it is also essential to understand the tools available to help you make such payments. There are at least five ways of paying down and paying off medical debt before you receive a settlement or judgment.

  1. PIP

    Your auto insurance policy likely has what they call PIP or personal injury protection. While this coverage may not cover all your medical expenses, it will cover some, but the money is dished out on a first-come, first-serve basis.

  2. Health Insurance

    Your personal health insurance plan can help to cover your losses until you receive a settlement. They will cover your expenses, but they will track your accident injuries so that if you receive a settlement, they can recover their losses.

  3. Medicaid/Medicare

    Medicaid and Medicare both operate similarly to your regular healthcare coverage. However, if they know the injuries are from a car accident, they will not pay until the PIP coverage is exhausted.

  4. Attorney Liens

    If you have a pretty cut and dry case, then your attorney may help you cover your bills by offering you a lien. These liens offer medical providers first access to your settlement.

  5. Out of Pocket

    Last, you can pay out of pocket for the bills. While not ideal, if you have the money, it might be the best option.

The best advice when dealing with rising medical expenses is to pay your bills on time. If you are struggling, then contact a personal injury attorney in Scottsdale, AZ and see what can be done.


Thanks to Yearin Law Office for their insight into personal injury claims and how to protect your credit after an accident.


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