Why Using Health Insurance For A Car Accident Is Important

Health Insurance Helps You Mitigate Damages

One of the most common arguments used by defense attorneys and insurance adjusters is that the injured plaintiff failed to mitigate their damages. In plain English, this means they’ll argue you didn’t do your part to reduce the financial impact of your injury, and you intentionally created high and unreasonable medical expenses. This means that negotiations will be difficult, nearly impossible, and if the case is in litigation, we will have a very dificult time when the defense hires experts that will testify the billing was unreasonable and uncessary.

Mitigating damages is a legal duty that falls on the injured party. You must take reasonable steps to minimize your losses, including getting timely medical treatment and using available resources—like your own health insurance, workers compensation insurance and more.

Failing to use available health insurance can open the door for the defense to argue that you intentionally ran up your bills to get a higher settlement. That argument can be very persuasive to a jury if not properly addressed.

Letters of Protection (LOP): A Tool with Serious Pros and Cons

We often see clients come to us who’ve already started treating under a Letter of Protection (LOP) set up by their former attorney, or they signed an assingment of benefits pushed by an  unethical medical provider. An LOP is a document signed by your attorney that promises a medical provider they’ll be paid out of the client's portion of the final settlement. An assignment of benefits, is an agreement between the provider and the injured party that also allows the same. If used correctly and ethically, this allows people without health insurance, or those who can’t afford out-of-pocket treatment, to still get medical care.

LOPs can be essential tools, especially for the uninsured. But they also come with major downsides, especially to those who have great health insurance, that many people don’t realize until it's too late.

Doctors who accept LOPs are taking a big financial risk—they don’t get paid unless and until your case settles. Because of that risk, they often charge significantly more for the same services that would have been billed at a discount through health insurance. Even after applying “LOP reductions,” those charges are almost always substantially higher than what health insurers would pay for the same treatment.

In the end, this means less money in your pocket after your case resolves if you have health insurance.

Why the Defense Will Question You About Using LOPs:

During a deposition, the defense attorney can—and often will—ask why you didn’t use your health insurance. Similarly, insurance adjusters during pre-litigation will want to know why you chose a chiropractor or specialist under an LOP instead of using in-network providers covered by your insurance.

This becomes an opportunity for the defense to argue to the jury that your choice of medical providers was made to inflate your bills—not out of medical necessity. This could severely impact your credibility and the overall value of your case.

Even if your injuries are real, the perception that you were trying to build a larger settlement instead of simply getting care can damage your case. A jury might not sympathize with someone they perceive as manipulating the system.

Real Example: A Costly Mistake in Arlington

We recently saw a troubling case right here in Arlington. A local chiropractic clinic claiming to be “auto accident specialists” convinced an injured client to treat with them under a Letter of Protection. The client had great health insurance, but the clinic told them not to use it.

After just two basic chiropractic visits and some plain X-rays, the clinic charged nearly $2,500 in an attempt to collect all of the client's personal injury protection (PIP) insurance, leaving the client with no PIP settlement. When the client called the chiropractic clinic and demanded they use their health insurance, the clinic was insanely rude and refused to do so., mocking the client because she refused more treatment with them, and refused to sign a contract to hire the clinic's attorney for her personal injury case. 

These charges were astronomical for the limited services provided. No third-party liability insurance company will consider that reasonable. In fact, these types of inflated charges hurt the credibility of the entire case.

If this client had used their health insurance, the same treatment might have cost a few hundred dollars at maximum, saving thousands—and making their case far more defensible in court.

Third-Party Liability Insurers Don't Pay Medical Bills as They Go

It’s critical for injury victims to understand that third-party liability insurers (like the at-fault driver’s auto insurance) do not pay for your medical treatment as it happens. They only pay once—and only at the end—when a final settlement is reached. This means:

• They don’t schedule your medical appointments.

• They don’t pick your doctors.

• They don’t pay your bills as they come in.

This is exactly why using your own health insurance, Medicare, Medicaid, or workers’ compensation coverage is so important. These systems are designed to pay medical providers in real-time, and they can often negotiate significantly lower rates than what you’d pay under an LOP.

By using your available insurance, you not only get the care you need—you show that you’re making a good-faith effort to handle your injury responsibly. That’s a big plus in the eyes of insurance adjusters, judges, and juries.

Built on Honesty, Ethics, and Results

At our firm, we emphasize transparency and integrity from day one. We don’t let our clients fall into traps set by unscrupulous providers or take unnecessary risks that will come back to haunt them. Our job is to protect your case—and your future.

Our team is proud to be rated AV by Martindale-Hubbell, the highest rating for ethical standards and legal competence. Attorneys Rocky Walton and Greg Jackson are both board-certified in personal injury trial law, a distinction held by only a small percentage of Texas attorneys. Together, they bring over 80 years of combined experience to every case we handle.

We believe in treating clients like partners in their own case, and that begins with making smart decisions about medical treatment from the start.

Final Thoughts

Choosing to use health insurance over a Letter of Protection isn’t just a financial decision—it’s a legal one. While LOPs are sometimes necessary, using available health coverage helps you avoid attacks from the defense, protect your credibility, and maximize your recovery when your case settles.

If you or a loved one has been injured in an accident, don’t navigate this process alone. Let an experienced, ethical, and client-focused law firm help guide your decisions—every step of the way. Contact us today, for a free consultation - we'd be honored to discuss your case with you. Be safe out there!