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What is a PIP Lien?
As you read in our previous article, PIP (personal injury protection) is a type of no-fault car insurance coverage that is required in Kansas. Regardless of who caused the accident, PIP can help you handle the costs of injuries that were caused by the car accident. You can read more about it here.
Sometimes, however, the insurance company that carries your PIP policy can assert a PIP lien. A PIP lien is, essentially, a claim against you by your insurance company that would require you to pay back the amount that the PIP covered after you get your settlement from the at-fault driver. So, the money that was supposed to compensate you for the injuries you sustained and the bills you had to pay, is taken away from you.
Let’s say, you are driving to work. Another vehicle runs a red light and crashes into your vehicle. You are rushed to the emergency room. To pay your hefty medical bills at the emergency room, you must use your PIP benefits. Eventually, you work out a settlement with the driver who ran the red light. However, in Kansas, some PIP carriers have a right by statute (KSA § 40-3113a) to assert a lien on the amount that the PIP covered for the medical bills. A PIP lien would require you to take some of your settlement money and give it to your insurance company that paid your medical bills with the PIP. Eventually, you are stuck paying for maintenance medical appointments with your own money out of pocket for an injury that was not your fault.
Again, that was just an example. Every case is different. Car accidents, injuries, medical bills, insurance policies can all be very complex and confusing when it is all confronting you at once. Often, being the victim in a car crash is life-altering, no matter how severe the injuries. That is why hiring an attorney is very important to receive the best compensation possible.
Good News: Often, An Attorney Can Try to Waive or Reduce PIP Lien
A PIP lien prevents you, the injured party, from keeping all your compensation that you deserve. Your personal injury attorney should know the rules and how to prevent the PIP lien. Your attorney can usually get it waived or reduced, allowing you to keep more of your money in your pocket.
Learn more about what your attorney could do for you. Call Mark Grover at 913-432-1000 to set up your free consultation.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.