There's a specific type of auto coverage that will pay for an accident victim's medical bills called personal injury protection or "PIP." This type of coverage is “no-fault." You’re entitled to this coverage regardless of who was at fault for the accident. PIP is mandatory coverage unless you reject it in writing. PIP pays for medical bills as they are incurred.
There are special laws in place that require the PIP carrier to pay the medical bills when due so they are not turned over to collection. PIP also provides wage loss benefits, but this coverage is usually capped at $200/week and/or 85% of your regular wage.