U.S. Auto Insurance: Unraveling The Medical Coverage Mystery

USAA offers medical payments insurance, also known as MedPay, which covers medical bills for the policyholder, their passengers, and any pedestrians, regardless of fault. This is in addition to the standard auto insurance coverage options, such as liability, collision, and comprehensive insurance.

Medical Payments Insurance (MedPay)

MedPay covers a range of expenses relating to injuries caused by an automobile accident, including:

• Health insurance deductibles and co-pays
• Visits to a doctor or hospital
• Ambulance and emergency medical technician fees
• Rehabilitation and nursing care
• Some medical equipment, such as prostheses

MedPay is particularly useful in situations where the policyholder is at fault or responsible for the accident, as it is the only coverage that will take care of their own medical expenses in such cases. It is also more useful in urban areas, where the incidence of foot traffic is higher, and therefore the likelihood of pedestrians being injured in an accident is greater.

The amount of MedPay coverage purchased represents the maximum amount available to each person covered under the policy. For example, if a policyholder purchases $2,000 of MedPay coverage and they and their passenger are hurt in an accident, each will have up to $2,000 in MedPay coverage. MedPay is usually sold in small amounts, ranging from $1,000 to $5,000, and the cost of increasing coverage is relatively low.

MedPay should not be confused with Personal Injury Protection (PIP), which is mandatory in states that require no-fault insurance and offers more generous coverage than MedPay. While both MedPay and PIP cover medical expenses after a collision, regardless of who is at fault, PIP also covers lost wages and replacement services, such as housekeeping or lawn care. MedPay does not cover these expenses. In some states, policyholders may purchase both MedPay and PIP, but as PIP covers more expenses, it is generally considered the better option.

Personal Injury Protection (PIP)

In addition to medical expenses, PIP can also provide payments for lost income, child care, and funeral expenses related to the accident. This type of insurance is particularly useful in no-fault states, where it ensures that the policyholder's medical expenses are covered regardless of who caused the accident. PIP is also beneficial in situations where the other driver does not have insurance.

PIP is required in 15 states and Puerto Rico, including Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah, and Puerto Rico. The minimum coverage requirements vary by state.

For example, in Florida, the minimum PIP coverage required is $10,000. If a policyholder caused an accident that resulted in injuries requiring medical treatment costing $15,000, their PIP would cover the first $10,000. If they had purchased a plan with higher coverage, their insurance would pay for expenses up to that higher limit.

It is important to note that PIP is not a substitute for liability insurance. Liability insurance covers medical costs for third parties and property damage if the policyholder is at fault. PIP, on the other hand, covers medical expenses for the policyholder and anyone in their vehicle, regardless of fault.

Discounts for anti-theft devices

Installing anti-theft devices in your vehicle is a great way to protect it from theft and lower your insurance premiums. Many insurance companies offer discounts to policyholders with anti-theft devices because they help insurers save money on coverage costs. In fact, twelve U.S. states mandate that insurance providers offer anti-theft device discounts to policyholders with comprehensive coverage.

Anti-theft devices come in various forms, but they all aim to prevent auto theft. They can be classified into two main types: passive and active. Passive devices, also known as automatic or inactive devices, work without any input from the driver. Examples include transponder keys, alarms, automatic locking doors, and vehicle tracking systems. On the other hand, active devices, also called manual or active devices, require manual activation by the driver. Common examples include steering wheel locks, brake locks, kill switches, and wheel clamps.

The discount you receive depends on your insurance company, the state you live in, the type of anti-theft device, and the level of protection it provides. For instance, insurers are more likely to approve a discount for an automatic steering wheel lock that disables your vehicle than standard automatic door locks. GEICO, for instance, offers policyholders an anti-theft system discount of up to 23%.

To get an anti-theft device discount, check with your insurance provider to see if they offer such discounts and what specific devices are eligible. Some insurers may require proof of installation, and certain companies only offer discounts for manufacturer-installed anti-theft devices. It's important to note that any anti-theft discount will only apply to the comprehensive part of your coverage and not your entire policy.

Discounts for automatic payments

USAA offers a wide range of discounts to its auto insurance customers, including a discount for setting up automatic payments. This discount is easy to apply for and can be done online. By clicking on the "Auto & Property Bill" tab and selecting the "set up automatic payments" option, you can receive a 3% discount on your bill. This is a simple way to save money on your insurance premiums.

In addition to the automatic payment discount, USAA offers several other ways to save on your auto insurance. For example, if you pay your automatic payments with a credit card, you can receive an additional 2% discount. USAA also offers a variety of other discounts, such as:

• Safe driver discount: For maintaining a clean driving record for at least five years.
• Driver training discount: For drivers under 21 who complete a basic driver training course.
• Good student discount: For college students and teenagers with a "B" average or a 3.0 GPA.
• New vehicle discount: For vehicles less than three years old.
• Multi-vehicle discount: For insuring more than one car with USAA.
• Annual mileage discount: For drivers 29 and older who drive less than a certain number of miles each year.
• Military installation discount: For storing your vehicle on a military base.
• Stored-vehicle discount: For deployed individuals who store their vehicle for at least 30 consecutive days.

These discounts can help keep your insurance rates low, and it's worth checking with USAA customer service to see what other discounts you may qualify for. USAA is known for its low rates and impressive customer service, and these discounts further contribute to the savings and benefits offered by the company.

Discounts for good students

USAA offers a good student discount to full-time students who are between the ages of 16 and 25 and can demonstrate scholastic excellence. The discount is approximately 3% to 4% off the annual car insurance premium, which is relatively low compared to other insurance companies. However, students may qualify for multiple car insurance discounts through USAA that could bring total savings to more than 60%.

Qualification Criteria

To qualify for the USAA good student discount, students must meet the following criteria:

• Age requirement: Students must be between the ages of 16 and 25.
• Full-time student status: Students must be enrolled full-time in high school, college, university, or a vocational technical school.
• Scholastic excellence: Students must meet at least one of the following academic standards:
• Ranked in the top 20% of the class scholastically
• Earned a grade average of B or higher (a grade point average of 3.0 or higher on a 4-point scale)
• Included on the Honor Roll, Dean’s List, or similar scholastic distinction

Application Process

To apply for the USAA good student discount, students can submit their application online, by fax, or by mail. The following documents are accepted as proof of scholastic excellence:

• Transcript
• Grade report
• Letter from the dean or similar scholastic achievement document

Students can also ask a school official to complete the Good Student Discount (GSD) application on their behalf.

Important Considerations

It is important to note that the USAA GSD does not automatically renew every year. Students must recertify annually by providing proof of good grades. Additionally, the GSD is not available in all states, with students in Hawaii and North Carolina currently ineligible for the discount.

Frequently asked questions