Who Pays My Medical Bills After a Car Accident in Texas?

A car accident can change your life in an instant. Beyond the pain of injuries and the stress of repairing your vehicle, one of the biggest concerns most people face is how to pay for medical bills. Hospital stays, surgeries, physical therapy, medications, and follow-up care can add up quickly, often reaching tens of thousands of dollars or more.

If you were injured in a car accident in Texas, you may be wondering: Who is responsible for paying these medical expenses? The answer depends on a variety of factors, including insurance coverage, fault, and the type of claim you pursue.

At Scott Callahan & Associates, we help accident victims every day navigate this complicated process. In this post, we’ll explain how medical bills are handled after a car accident in Texas and what steps you can take to protect yourself.

Texas Is an “At-Fault” State

The first thing to understand is that Texas follows an at-fault insurance system. This means the driver who caused the accident is financially responsible for the damages—including medical bills, lost wages, and property damage—incurred by the other party.

In theory, the at-fault driver’s auto insurance should cover your medical expenses. In practice, however, things are rarely so simple. Insurance companies often delay, dispute, or deny claims. And while your case is pending, the hospital and doctors still expect payment.

Options for Covering Medical Bills After a Texas Car Accident

Because medical care can’t wait, most accident victims must rely on a combination of resources before a final settlement is reached. Here are the most common ways medical bills are handled:

1. Personal Injury Protection (PIP) Coverage

In Texas, auto insurers are required to offer Personal Injury Protection (PIP) as part of every policy. Unless you rejected it in writing, you likely have this coverage.

PIP pays for medical bills, lost wages, and certain other expenses after a crash—regardless of who was at fault.
Standard policies typically include at least $2,500 in coverage, but you can purchase higher limits.
PIP can also cover passengers in your vehicle at the time of the crash.

While $2,500 doesn’t cover much in today’s world of medical costs, it can provide immediate relief for emergency room visits or initial treatment.

2. Medical Payments (MedPay) Coverage

Some drivers carry MedPay coverage, which works similarly to PIP but usually only covers medical bills (not lost wages). Like PIP, MedPay pays out regardless of fault.

However, MedPay is optional, and not all drivers have it. It’s also typically available in lower amounts than PIP.

3. Health Insurance

Your health insurance (through your employer, a private plan, or a government program like Medicare/Medicaid) can often be used to pay for accident-related medical care.

The advantage is immediate coverage for hospital stays, surgeries, and follow-up care.
The downside is that you may still face co-pays, deductibles, and out-of-network charges.
Additionally, if you later recover compensation from the at-fault driver, your health insurer may place a lien on your settlement to be reimbursed for what they paid.

4. The At-Fault Driver’s Insurance

Ultimately, if another driver caused your accident, their liability insurance should pay for your medical bills as part of your settlement.

Texas law requires drivers to carry at least:

$30,000 in bodily injury liability per person
$60,000 per accident
$25,000 for property damage

However, these minimum limits often fall far short of covering serious injuries. And even if liability is clear, the insurer won’t pay until the case is resolved—which can take months or even years.

5. Uninsured/Underinsured Motorist (UM/UIM) Coverage

What happens if the at-fault driver doesn’t have insurance—or doesn’t have enough to cover your bills?

That’s where UM/UIM coverage comes in. Like PIP, Texas insurers must offer this coverage, and you must reject it in writing if you don’t want it. UM/UIM coverage steps in to pay for your damages when the other driver can’t.

This coverage can be a lifesaver in hit-and-run cases or when facing drivers who carry only the state’s minimum insurance.

6. Letters of Protection (LOPs)

For accident victims without health insurance, some attorneys—including Scott Callahan & Associates—can arrange for medical treatment through a Letter of Protection (LOP).

Here’s how it works:

Your lawyer issues a letter to a medical provider promising that bills will be paid from your eventual settlement.
In return, the provider agrees to treat you without requiring upfront payment.
This allows you to get the care you need while your case is pending.

Why You May Still Get Medical Bills in the Mail

Even if insurance will ultimately cover your expenses, you may still receive medical bills and collection notices in the meantime. Hospitals and providers don’t wait for lawsuits to resolve.

That’s why it’s important to:

Stay organized by keeping copies of all bills, receipts, and insurance correspondence.
Communicate with your attorney about every bill you receive.
Avoid ignoring bills, as unpaid balances can affect your credit.

Subrogation: When Insurance Wants Reimbursement

Many accident victims are surprised to learn that if their health insurance pays for treatment, the insurer may later demand reimbursement from their settlement. This process is called subrogation.

For example:

Your health insurer covers $25,000 in medical bills.
Later, you receive a $100,000 settlement from the at-fault driver’s insurer.
Your health insurer may place a lien and recover the $25,000 they paid.

An experienced personal injury lawyer can often negotiate with health insurers to reduce the lien, allowing you to keep more of your settlement.

Why You Shouldn’t Rely on the Insurance Company

Insurance companies may appear sympathetic at first, but their goal is to minimize payouts. Common tactics include:

Arguing your injuries were pre-existing.
Claiming your treatment was unnecessary or excessive.
Pressuring you into a quick, low settlement before you understand the full cost of your care.

Accepting a fast payout may cover initial bills but leave you responsible for future surgeries, therapy, or long-term complications.

The Role of a Personal Injury Lawyer

Navigating medical bills after an accident is complicated. A personal injury lawyer helps by:

Identifying every source of coverage (PIP, health insurance, UM/UIM, liability).
Negotiating with providers and insurers to reduce bills and liens.
Delaying collection actions while your case is pending.
Fighting for full compensation for both current and future medical needs.

At Scott Callahan & Associates, we understand the stress medical bills cause. That’s why we make it our mission to protect your rights, keep you informed, and maximize your recovery.

Call a Katy car wreck lawyer for help.

After a car accident in Texas, medical bills are often the most pressing concern. While the at-fault driver’s insurance should ultimately pay, coverage from PIP, MedPay, health insurance, or UM/UIM may help in the meantime. For those without coverage, Letters of Protection can provide access to necessary care.

The process is complicated, but you don’t have to face it alone. An experienced Katy personal injury lawyer can guide you through each step, negotiate with insurers, and ensure you’re not left paying out of pocket for someone else’s mistake.

If you’ve been injured in a car accident, call Scott Callahan & Associates today for a free consultation. Let us fight for the compensation you deserve while you focus on healing.