June 5, 2025
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Reading Time: 4 min
If you’ve been injured in a car accident, one of the biggest questions you may have is: “Do I have to use my settlement money to pay my medical bills?” The short answer is yes, but there’s more to it, and it depends on several factors.
If you or someone you love has been injured in an accident, Cellino Law is here to help. Fill out our online form today to schedule a free case consultation.
Understanding Medical Bills After a Car Accident in New York
In New York, car insurance operates under a “no-fault” system. This means that after a car accident, your car insurance will pay for your medical care, no matter who caused the crash. This coverage is called Personal Injury Protection, or PIP.
PIP will usually cover things like:
- Emergency care
- Follow-up doctor visits
- Surgery
- Physical therapy
- Prescription medications
But PIP only pays up to a certain limit. In New York, the minimum required amount of PIP coverage is $50,000. If your medical bills go beyond that, or if you need treatment that isn’t fully covered, the remaining costs may need to be paid from your accident settlement unless you opt into Additional PIP or Optional Basic Economic Loss (OBEL).
What Happens When Your Medical Bills Go Beyond PIP?
Once you reach your PIP limit, one of the following might happen:
- If you have health insurance, it may help cover the remaining medical expenses.
- If you don’t have health insurance, you may have to pay some bills yourself, at least for now.
- In some cases, your car accident settlement will be used to repay any unpaid medical bills.
- If you have opted for Additional PIP or OBEL, your medical expenses will be covered up to your policy limit.
Many people assume that once a settlement is awarded, the full amount will go directly to them. However, in many cases, a portion of the settlement must be used to repay doctors, hospitals, or health insurance providers that covered medical expenses during the case. Your attorney’s fees and case expenses will also be deducted at this stage.
What If You Can’t Afford to Pay Bills Right Away?
Hospitals and doctors typically expect payment at the time of treatment, but that isn’t always possible after a serious accident. In some situations, medical providers may agree to postpone payment until your case settles. This arrangement is known as a “medical lien” or a “letter of protection.” It allows you to receive the care you need now, with the understanding that the provider will be paid from your settlement later. While not all providers will agree to these terms, your attorney may be able to help coordinate such agreements. This can take the pressure off you while you focus on healing.
Why Having a Lawyer Makes a Big Difference
Insurance companies are often focused on minimizing payouts. They may dispute the severity of your injuries, question the necessity of your treatment, or try to shift blame onto you. This is why having an experienced car accident attorney on your side is so important.
At Cellino Law, we:
- Help collect and organize your medical records and bills
- Handle all communication with insurance companies
- Negotiate for a settlement that truly reflects the extent of your injuries and expenses
- Coordinate with medical providers when payment arrangements are needed
Far too often, we’ve seen individuals accept low settlements that fail to cover their ongoing medical needs. Our goal is to protect your interests and help you recover the compensation you deserve.
What If You Were Partly at Fault?
Even if the accident was partly your fault, you may still be eligible to receive compensation. New York follows a “comparative fault” rule. That means your settlement may be reduced based on how much you were to blame, but you don’t lose your right to recover compensation altogether.
If your health insurance covered some of your medical expenses, the insurer may seek reimbursement from your settlement. A personal injury attorney can often negotiate to reduce these reimbursement claims, helping to maximize the amount you ultimately receive.
Cellino Law Is Here to Support You
Navigating medical bills after a car accident can feel overwhelming. While a portion of your settlement may go toward paying those expenses, that doesn’t mean you’ll walk away with nothing.
With the right legal representation, you can protect your rights, reduce what you owe, and pursue the full compensation you’re entitled to. Fill out our online form or call us at 888-888-8888 to schedule your free consultation with Cellino Law.
Content checked by the personal injury attorney Ross Cellino. As a family man and a trial attorney, I pride myself on winning cases and serving the community. With over 35 years of experience, I understand the function of a jury, how juries arrive at conclusions, and the role that the jury plays in administering justice. I know how to win cases. You can find us in Manhattan, Buffalo, Melville, Rochester, Brooklyn, The Bronx, Queens and other locations throughout New York.