5 Ways to Pay for Your Medical Care After an Accident

If you’ve ever been in an accident, whether auto-related, workplace-related, or in your home, such as when doing a bit of work around the house, you know how it can throw your entire life out of balance. We’re not just talking injuries and damage to property; we’re also talking about the toll it can take on your finances.

According to debt.org, the average cost for a one-day stay in a US hospital as of 2022 was around $3,025. And those costs have only continued to rise. No wonder approximately 41% of US adults, or more than 100 million people in the US, carry some form of medical debt. Many of them got there because of an unexpected medical emergency, such as a car crash.

So, how do you actually pay for medical care after an accident without falling into debt? Let’s look at some options.

1. Health Insurance Coverage

For many people, this is the first option. If you’ve got some form of health insurance, whether it’s through your job or Medicare (if you’re over 65), you can use it to cover some of your hospital bills.

It’s not as simple as just handing over your insurance card and walking away, though. You may first need to meet your plan’s deductible, and you'll still be responsible for copayments. Even then, you’re looking at only some part of the amount covered.

Your insurance company will determine what should be covered and charged, and there are some bills they won’t even touch at all. For example, your insurance may not cover the cost of an ambulance ride from where the accident occurred to the hospital if it’s not deemed medically necessary or if the ambulance is unlicensed. 

You’ll have to cover these extra costs on your own.

2. Auto Insurance

If you were in a car crash, your auto insurance may be able to cover all or some of the cost of your treatment. Policies like MedPay and PIP (Personal Injury Protection) cover medical costs no matter who caused the car accident you were in. PIP, however, is generally more comprehensive and can also cover lost wages, rehabilitation costs, and even funeral expenses.

There’s a small snag, though. MedPay is optional in most states, and PIP is only mandatory in "no-fault" states. Basically, this means that you’re not covered everywhere. For example, if you live in a state where PIP is not mandatory, then you don’t automatically have this benefit. 

In this situation, you’ll have to wait to determine if the other person’s insurance can cover your hospital stay.

3. Settlement or Legal Compensation

If you were involved in a car accident that requires a hospital stay, and the accident is not your fault, then you may not be the one paying in the first place. The insurance company of the “at-fault” driver is meant to step up and cover your expenses. 

But because this is usually easier said than done, you may want to talk to a car crash lawyer immediately after the accident. 

A lawyer will help you understand your rights. They will also help you fight for appropriate compensation, not just for the bills, but also other not-so-obvious costs like lost wages, physical therapy, and even long-term care, in case your injuries take time to heal.

It’s not just about car accidents, though. According to TorHoerman Law, whether you have been hurt on the job, in an accident, by a medical device you used, or from some other type of negligence, you may be entitled to compensation for those damages.

4. Hospital/ Provider Payment Plans

Many hospitals and providers offer payment plans that allow you to pay your bills over time, rather than send your account to collections. This is one option you should consider, so don’t hesitate to ask your hospital if they have such an option.

Of course, these plans are not generally interest-free, but they’re way cheaper than using a credit card. The trick is to pay off your debt bit by bit every month, and more importantly, don’t stop making payments until you’ve cleared it; otherwise, it could go to collections, which can damage your credit score.

5. Out-of-Pocket & Credit Options

Sometimes, none of the options above are available to you, and you’ve got hospital bills waiting. This is when you dip into your personal savings, use your credit cards, or take out a personal loan.

The latter happens far more than you think. In fact, Gallup reports that about 31 million Americans had to borrow an estimated total of $74 billion to pay for medical bills in 2024.

Even the credit card option is not ideal. A medical bill of $2,000 can turn into a debt of $5,000 if you’re not careful. As for personal savings, it can be heartbreaking to take from the money you’ve set aside for a down payment on a house, a much-needed holiday, or your daughter’s dream wedding. 

That said, while you’re turning your pockets out for money, also check to see if your accident qualifies for compensation.

Final Thoughts

Accidents, no matter the form, can change your life in seconds. Beyond the physical pain and injuries, there’s always the question: how am I going to pay for all these? 

Hopefully, this guide has answered this question and shown you practical options that can help you avoid medical debt.