Can Unpaid Medical Bills From a Car Accident Affect My Credit?

The short answer is "yes." There are lots of misconceptions about how medical bills get paid following a car wreck. Some people think the at-fault driver's insurance company will pay the bills directly. Other people have been told that health insurance does not apply in accident cases.

In South Carolina, it works like this:

1. You receive all reasonable and necessary medical care;

2. The hospital and other medical providers bill your health insurance company;

3. You are responsible for any co-pays or deductibles, just as you would be with an ordinary visit;

4. The at-fault driver's insurer pays you a settlement or you obtain a jury verdict;

5. Part of your settlement or jury proceeds are used to pay back your own health insurer.

As you can see, you may not recover money from your auto accident prior to your outstanding bills being sent to collections. The way to avoid this - and in turn, keep your credit from being affected - is to make payments, however small, on your bills throughout the case. Your settlement should account for all medical expenses (in other words, you will get paid back), but a settlement may not be reached until many months after the initial injury.

Unpaid bills arising from car crashes are treated just like any other bill by hospitals, doctors' offices, and collections agencies. That is why it is so important to reach out to those providers early on, explain to them your financial situation, and agree to a payment plan that you can afford. This will keep your credit score from declining, and prevent any further financial harm.

Dealing with insurance carriers and billing departments can be daunting, especially as you try to recover from your injuries. I help people in these situations across South Carolina, and will gladly provide you with a free consultation. For guidance, request free copies of my books and call 803-790-2800.

Kenneth Berger
Columbia South Carolina attorney dedicated to securing justice by helping the truly injured