Recently, I was in a car accident and the other driver's insurance carrier accepted full liability. I used my Medpay to pay the Doctor's bill. I am in the process of negotiating a settlement with the at fault insurance carrier and I'm being told b...
The answer to your question is maybe. First, you need to look at your automobile insurance policy and find out if the policy provides that you must reimburse your insurance company if you settle your case. Not all automobile policies include such a provision. Second, you do not have to reimburse your insurance company if you are not "made whole," by the settlement. For example, let's say you had back surgery due to the accident and the person that hit you had only a $50,000.00 policy limit. If you accepted the full policy limit for settling your claim, you would not have been "made whole," because your case would have been worth more than $50,000.00.
So, the answer is, (1) if your policy inlcudes a provision which requires you to repay your insurance company for medical payments, if you recover, and (2) if you receive the full value of your case in settlement, then yes you would have to repay your insurance company. If you have a lawyer, your insurance company would have to reduce the amount of the repayment by its share of the attorney's fees and costs.See question