BENEFITS OF USING A LETTER OF PROTECTION
A Letter of Protection (LOP) is standard operating procedure for most personal injury firms who are helping car accident victims get compensation for their injuries. Insurance companies don’t WANT you to work with a law firm; they would rather deal directly with you so they can pressure you into accepting a payout that is severely undervalued, or just not offer one at all. But here’s why paying with an LOP is a good idea:
WHAT ARE THE BENEFITS OF USING LOP AS PAYMENT?
NO OUT-OF-POCKET
You don’t have to pay for your treatment out of pocket or with your own health insurance (and its all-too-expensive deductibles).
PAY WITH YOUR SETTLEMENT
Most Doctors working with a LOP agree that they will only get paid through the car accident settlement. And if there’s no settlement, most doctors will waive the cost of your treatment. (However, in these instances, doctors will generally explore policies on your own car insurance or health insurance to receive payment that way.)
MAXIMUM CASE VALUE
Most Doctors working with a LOP will charge the full price of what the reasonable and necessary medical treatment in your case costs. Charging full price typically will increase the value of your car accident settlement, whereas health insurance companies work out reductions ahead of time that can devalue your settlement.
COST PROTECTION
Most Doctors working with a LOP agree ahead of time with the Law Firm that they will reduce their bills if necessary. This is an important point of compromise for the doctor and your legal team, since sometimes you simply can’t extract the full potential value of your case from the insurance company. If the best payout number is less than expected, there’s still opportunity to salvage the case for everyone involved.
WHAT IF I PAY FOR ALL TREATMENT THROUGH HEALTH INSURANCE?
For starters, you may not be able to. Health insurance companies are no strangers to denying paying for any type of car accident treatment. They are aware that with a car accident injury, there is usually a car insurance policy or two that will be responsible for your medical bills… and they’ll tell you to find a doctor that will bill the auto insurance directly or bill through self-pay.
That said, if you do manage to get your health insurance to pay for your treatment or some of your treatment, they will want to be reimbursed by the auto insurance policy(s) being pursued on the case. In this situation, the auto insurance company will work directly with the health insurance company in getting reimbursed—but this also means there will be reductions involved which have the ability to devalue your case.
Additionally, the auto insurance company may deny paying for certain treatment altogether because there is a specific type of treatment allowed by Texas law involving car accidents and Health Insurance Doctors are not always aware of it. In some cases, the health insurance and auto insurance will deny together and you are stuck holding the tab. It is much safer to go through LOP, where you know you are working alongside doctors who regularly treat car accident patients. As mentioned, not only do car accident doctors know the proper treatment you need, but they also know what treatment is approved by Texas law and are willing to work with you and your legal team to resolve the bill.
WHAT IF I DON’T HAVE HEALTH INSURANCE OR THE ABILITY TO USE A LOP?
As long as you get in touch with a good personal injury lawyer, you should have the ability to use a LOP if they feel you have a case worth pursuing. However, if no attorney will take your case, you either need to pay out of pocket or you may be able to work directly with a car accident doctor who will bill approved auto insurance policies connected to your case.
For example, some car accident victims are stuck with only using PIP (Personal Injury Protection) or Med Pay on their own policy. In this situation, an attorney probably wouldn’t take your case, but a car accident doctor could bill the parts of your policies available directly. Make sure to check out our Types of Coverage section for further information.
ARE THERE ANY OTHER WAYS TO PAY?
It's always worth checking every potential avenue to see if there are any other payment options available to you. It's best to seek a free consultation from a Texas Car Accident specialist who can help you through this process and answer any questions you may have.
COMMERCIAL VEHICLE COVERAGE
If you were involved in a car accident on the job, you may have workers' compensation and/or auto insurance coverage on the commercial vehicle you were driving.
VEHICLE OWNER COVERAGE
If you were a passenger in a vehicle or driving a vehicle that you don't own, there may be insurance coverage on that vehicle that can pay for your medical bills.
THIRD-PARTY COVERAGE
In rare occurrences, if you live in a household with someone that has auto insurance, even though they and their vehicle were not involved in your accident, you may still be able to recover from their auto insurance policy.