Broken Bones and Auto Accidents: Critical Steps to Protect Your Rights

Last Updated: 1/27/2025

Being involved in an auto accident is a frightening experience, and suffering a broken bone, whether it’s your arm, leg, back, hand, neck, or another part of your body, can make it even more overwhelming. The long-term consequences of these injuries can be serious, so it’s essential to take the right steps to protect your health, rights, and financial future.

Here’s what you need to know to avoid costly mistakes after a car accident:

A common tactic for insurance companies is to offer you money immediately after a crash before you know the extent of your injuries.

Do not even consider discussing settlement with the insurance company for the other driver until you are out of the hospital and have finished treatment for your injuries.

If you were to accept an offer early on and sign settlement documents, then you are most likely stuck and could end up having to pay the entire amount back to your health insurance. That is right, if your health insurance pays for your medical bills caused by the auto accident, then you are required to pay them back from your recovery. 

This is called subrogation and all health insurance policies have a provision that states you are required to pay them back. However, if your health insurance plan is not a self-funded ERISA plan then there are Iowa laws that can help protect you so that if you do not make a full financial recovery, then your health insurance company also is not allowed to make a full financial recovery.

If you hire an attorney to help you through the process your attorney gets to charge your health insurance company a 1/3 fee for making the recovery. At our office, that 1/3 fee goes back to our clients, but other firms keep the fee.

If your plan is a self-funded ERISA plan (which is very common if you work for a company that has 500 or more employees) then there are federal laws that apply and if you settle your case without reaching an agreement with the plan, you may have breached the contract

Regardless of how much or little compensation the insurance company paid you, you may end up paying all of that money back to the ERISA plan. There are some strategies that our office uses to make the maximum recovery for our clients in these cases.

Iowans injured in auto accidents often think they will have the hospital and medical providers bill the insurance company for the other driver.

This is a bad idea for several reasons:

The insurance company for the other driver may have asked you to send them your medical bills, but this does not mean that they will pay them. This is an insurance company tactic designed to put more pressure on you to settle when your bills remain unpaid and you start receiving collections calls and letters.

If you have health insurance, it is best to provide your health insurance information to all medical providers and ask them to bill your health insurance. Some hospitals and medical providers will tell you “We cannot bill your health insurance if there is an auto accident” which is simply not true.

This is a tactic they use to try to be paid the full bill. For example, if the hospital charges $50,000 for your treatment to fix your broken bones they would like to be paid the full $50,000 instead of the contractual amount they previously agreed upon with your health insurance company which is likely close to $10,000.

Why is this important? For many reasons, including that under Iowa law the minimum car insurance liability coverage is only $20,000 and if the other driver has minimum or low limits, you could end up owing money towards your medical bills after the insurance has been paid.

Also, as we discussed above you will have to pay back your health insurance, but if you have an attorney involved it is usually at a discounted amount putting more money in your pocket.

If you have car insurance with medical payments coverage it is best to wait and use this coverage for your co-pays and deductibles after your health insurance has paid your medical bills. The amount of medical payment coverage varies greatly depending on how much you purchased, but it usually ranges from $1,000 to $10,000. Some medical providers and health insurance companies will insist that you use your medical payments coverage first, but it is not the best idea.

If you purchased a car insurance policy then chances are that you have UM (uninsured motorist) and UIM (underinsured motorist) insurance coverage.

UM is coverage that compensates you for your personal injuries, medical bills, lost wages, etc. up to the amount of your policy limit if the other driver has no insurance at all. UIM is the coverage that provides you with compensation if your injuries and damages exceed the amount of coverage that the other driver has.

For example, if you sustained broken bones, required surgeries, and your health insurance has paid $25,000 for your medical bills, but the other driver only has a $20,000 insurance policy limit, then you would want to bring a UIM claim to recover your full damages. Keep in mind that there are legal requirements in bringing a UIM claim including getting your insurance company’s approval before settling with the other driver, etc.

Getting Help From An Attorney

If you or a loved one broke a bone from a car accident in Iowa you probably have other questions and concerns. If you would like help right away give us a call at 641-792-3595 as our phones are answered 24 hours per day. If an attorney is not immediately available an appointment will be scheduled for the next business day. There is no cost or obligation to speak with one of our Iowa car accident attorneys.

If you are not yet ready to speak with an attorney but would like to learn more, claim your copy of our book entitled The Legal Insider's Guide to Iowa Car Accidents: 7 Secrets to Not Wreck Your Case. We offer our book at no cost or risk to you because we have seen far too many Iowans make costly mistakes.

Finally, you can learn about Iowa laws that affect your case in the comfort of your own home. Claim your copy now.

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