- MedPay will cover your medical expenses as a driver, passenger, or pedestrian if injured in a car accident.
- It will also cover passengers who are riding in your car.
- Policy limits are low, but it can be an affordable supplement to your health insurance or PIP coverage.
People who are hurt in car accidents are typically responsible for their own medical bills, even if the crash was another driver’s fault. In those cases, the injured person’s health insurance or personal injury protection coverage (PIP) will usually pay for the expenses.
However, if your PIP or health insurance coverage falls short, medical payments coverage (also known as MedPay) can help cover additional costs.
What is medical payments coverage?
Medical payments coverage is optional insurance that reimburses you for medical and funeral expenses related to vehicular accidents, regardless of who is at fault.
MedPay protects you and your passengers in the following scenarios:
- If you or your passengers get injured in your vehicle
- If you get injured while riding in someone else’s vehicle
- If you’re a pedestrian and get injured by another vehicle
- If you’re injured by a vehicle while riding a bicycle or using public transportation
MedPay supplements your health insurance coverage. Because MedPay limits are low, your health insurance will pay for most expenses, and MedPay will kick in when you reach your health insurance limits.
Medical payments coverage vs. personal injury protection
“No-fault” states require drivers to have personal injury protection (PIP). No-fault insurance covers up to a specific limit for accident-related medical bills, regardless of who is at fault.
In other states, at-fault drivers are responsible for a victim’s injuries that occur in a collision. You have the option of filing a claim against the guilty party. However, it may take a long time to prove fault and get reimbursed for your injuries.
Suppose you do not have health insurance and max out on your PIP coverage. In that case, you can use MedPay to fill the gap, according to Jason Turchin, a personal injury and accident attorney at Jason Turchin’s Law Offices in Florida. Here are a few of the core differences between MedPay coverage and PIP:
Bodily injury liability insurance covers medical expenses for passengers in another car in which you are at fault.
What does medical payment coverage include?
Your MedPay insurance will go where you go, whether you are a pedestrian, driver, or passenger. You are covered outside of the US as well. Here are several of the expenses that MedPay will cover:
- Medical services: MedPay will cover visits to the hospital or doctor, EMT and ambulance fees, nursing care, and any other medical services related to the accident.
- Health insurance copay or deductibles: If your health insurance deductibles or copays are high, consider getting MedPay. It will cover the rest of the copay expense or deductibles if you need to use your health insurance.
- Treatments: MedPay will cover everything from dental procedures to prosthetic limbs, surgeries, and medicines related to injuries from the accident.
- Funeral costs: If someone dies in an accident, MedPay will cover funeral expenses.
What doesn’t MedPay cover?
MedPay will cover you in many car accident cases, no matter where you are. But there are several instances where medical payment coverage is not applicable. These include:
- If you surpass your coverage limits: If you max out your health insurance, PIP, and MedPay coverage, you’ll have to pay for the rest out of pocket.
- Loss of wages: MedPay will not cover loss of income if you’re out of work due to an accident.
- Other drivers: MedPay does not cover injuries you cause to other drivers and their passengers.
- Injuries unrelated to car accidents: MedPay will only cover injuries related to the accident – not other health problems that previously existed.
- Child care costs: If you are not at home and cannot care for your child, MedPay will not cover child care costs.
Do I need medical payments coverage?
Only two states require MedPay coverage: Maine and New Hampshire. Twelve states require PIP. MedPay and PIP are optional for the rest, according to Insurance.com.
“Medical payment coverage may not be necessary if you have health insurance, as that generally covers the balance after PIP,” says Turchin. However, MedPay ensures that 100% of your medical treatment is covered, which means you receive treatment quickly, even if you’re at fault in an accident, Turchin notes.
Even if it isn’t mandatory, you may still want to consider MedPay under certain circumstances. For example, if your deductibles and copay for your health insurance are high, it may be worth having MedPay. It could also be wise to purchase MedPay coverage if you frequently use your vehicle to transport people who are not relatives. For instance, if you drive for a rideshare company like Uber or Lyft, it may be wise to have MedPay coverage.
How much medical payments coverage do I need?
MedPay has lower limits because it acts as supplementary coverage for your health insurance or PIP. Limits can be as low as $ 2,500 or as high as $ 10,000, according to Insurance.com.
Medpay can cost as little as $ 2 a month, while PIP usually starts at $ 50 a month, according to Insurify.
The amount of MedPay coverage you should purchase will depend on how much you already have in health insurance or PIP. You might only need a couple of thousand dollars in MedPay coverage if you have low health insurance deductibles and copays. If you have high deductibles and copays, consider having more MedPay coverage.
MedPay may not be necessary for drivers with sufficient health insurance or PIP coverage. But remember, in many states, an at-fault driver is not responsible for your medical bills. Having MedPay can give you peace of mind that your expenses are completely covered in the event you’re in an accident.