When you’re involved in a car accident, the first question on your mind is often: Who will pay for the damage, the injuries, and the pain I’m going through? Insurance is supposed to provide financial protection in times like these. But with so many types of coverage, liability, personal injury protection (PIP), MedPay, uninsured motorist (UM), underinsured motorist (UIM), and collision, it’s not always clear which one offers the highest payout.
Understanding the various types of car insurance and how much they typically pay out can help accident victims protect their rights and pursue fair compensation. In this blog, we’ll explore the major types of car insurance, compare their payouts, and provide insight into how to maximize your recovery after a crash.
1. The Major Players: Types of Car Insurance That Pay Accident Victims
Before diving into which pays the most, let’s break down the main types of auto insurance coverage that could come into play after a car accident:
- Liability Insurance
- Uninsured/Underinsured Motorist Coverage
- Personal Injury Protection (PIP)
- Medical Payments (MedPay)
- Collision Insurance
- Comprehensive Coverage
Let’s look at each one in more detail.
2. Liability Insurance: The Most Common Payout Source
Liability insurance is mandatory in most states. It pays for the injuries and property damage the at-fault driver causes to others. This means if someone else caused your accident, their liability insurance will cover:
- Medical bills
- Lost wages
- Vehicle damage
- Pain and suffering (in many cases)
How Much Does It Pay?
The payout depends on the policy limits. In South Carolina, for instance, the minimum coverage is:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage
However, many drivers carry higher limits. If the at-fault driver has a $100,000/$300,000 policy, you could receive up to $100,000 per person and $300,000 per accident for bodily injuries.
3. Uninsured and Underinsured Motorist Coverage (UM/UIM): Often a Lifesaver
Not everyone follows the rules. If the at-fault driver doesn’t have insurance or doesn’t have enough insurance, your own UM/UIM coverage can step in to help.
UM covers:
- Bodily injuries caused by an uninsured driver
- Hit-and-run injuries
UIM kicks in when the at-fault driver’s liability coverage is not enough to cover your damages.
How Much Does It Pay?
Again, it depends on your own policy limits. If you carry a $100,000 UIM policy, and the at-fault driver has only $25,000 in liability insurance, your insurer could pay the difference up to your limit, meaning $75,000 more.
4. Personal Injury Protection (PIP): Quick But Capped
PIP is required in some no-fault states and optional in others. It pays for:
- Medical expenses
- Lost income
- Essential services (like housekeeping)
PIP pays regardless of who is at fault, which makes it a fast source of relief for victims.
How Much Does It Pay?
Typical PIP limits range from $2,500 to $10,000. Some policies offer more, but even at its highest, PIP usually caps well below liability or UM/UIM coverage.
5. Medical Payments Coverage (Med Pay): Similar to PIP but Narrower
MedPay is similar to PIP, but it’s more limited. It covers:
- Immediate medical costs
- Ambulance fees
- Hospital visits
It doesn’t cover lost wages or essential services.
How Much Does It Pay?
Coverage limits range from $1,000 to $25,000, depending on your policy.
6. Collision Insurance: Vehicle Damage Only
Collision insurance helps repair or replace your car after a crash, regardless of who caused it. However, it does not cover injuries.
How Much Does It Pay?
It pays up to the actual cash value (ACV) of your vehicle, minus your deductible. If your car is worth $20,000 and your deductible is $500, you’ll receive $19,500.
7. Factors That Affect Payouts Across All Insurance Types
Even when you have the right type of coverage, your payout can be affected by various factors:
- Policy limits – You can’t receive more than the maximum your (or the other driver’s) insurance allows.
- Fault determination – In fault-based states, insurers will investigate to determine who caused the accident.
- Injury documentation – You must have medical records and supporting documentation for any injuries.
- Legal representation – Having an attorney often increases settlement amounts and speeds up claims.
8. Tips for Maximizing Your Insurance Payout
Here’s how you can increase your chances of getting the highest payout possible:
- Report the accident promptly to all relevant insurance providers.
- Seek medical treatment immediately, and keep records.
- Do not sign any quick settlement offer without understanding the full value of your claim.
- Document everything, from property damage to missed workdays.
- Work with an experienced legal team that understands insurance law and negotiations.
9. Why Insurance Companies Try to Minimize Your Payout
It’s important to remember that insurance companies, yours or the other party’s, are businesses. Their goal is to:
- Limit payouts
- Close cases quickly
- Avoid lawsuits
That’s why victims who have legal support often receive much higher settlements than those who go it alone.
10. Why Legal Help Makes a Difference
Dealing with insurance adjusters, confusing policy language, and tight deadlines can be overwhelming, especially while recovering from an accident. A legal team can:
- Review your policy coverage and limits
- Identify all sources of compensation
- Negotiate with insurers on your behalf
- Ensure your claim includes long-term damages
At Ted Law Firm, we work with injured car accident victims to get them the maximum compensation possible from every insurance policy available.
12. Real-World Scenarios: Who Pays What?
Example 1: The At-Fault Driver Has Minimum Coverage
- You have $75,000 in medical bills.
- The at-fault driver has $25,000 liability.
- Your UIM policy covers an additional $50,000.
- Total payout = $75,000
Example 2: Hit-and-Run
- You’re injured by an unknown driver.
- You file a UM claim through your own insurer.
- You have $100,000 in UM coverage.
- Total payout = Up to $100,000
Which Insurance Pays Out the Most?
If we’re strictly talking maximum dollar potential, then liability insurance and UM/UIM coverage often pay out the most in car accident claims, especially when serious injuries are involved. These policies can reach into the hundreds of thousands or even millions of dollars, depending on the circumstances and policy limits.
PIP and MedPay can offer quick relief, but they don’t come close in terms of total payout. Collision and comprehensiveness are important, but they’re focused solely on property, not personal harm.
To truly recover what you’re owed, it’s critical to understand your rights, know your policy, and seek trusted legal help.
Need Help Navigating Insurance Claims After a Crash?
At Ted Law Firm, we help car accident victims pursue every dollar they’re entitled to. If you’re unsure about your insurance rights or have been offered less than you deserve, let’s talk. We proudly serve injury victims in Aiken, Anderson, Columbia, Greenville, Myrtle Beach, North Augusta, Orangeburg, and Summerville. If you’ve been injured due to someone else’s reckless or criminal behavior, our experienced attorneys are here to help you seek justice and recover the compensation you deserve. Contact us today for a free consultation.
Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.
