Jeffrey Wade
Medical payments coverage, also known as MedPay, is an optional coverage type for auto insurance policies in most states. It covers the initial medical and funeral expenses of the policyholder, passengers, or a member of the policyholder's family in the event of a car accident, regardless of who is at fault. MedPay is different from health insurance as it is specifically for auto accidents and has no deductibles or copayments. It covers expenses such as hospital visits, surgeries, ambulance fees, and health insurance deductibles. The coverage limit typically ranges from $1,000 to $10,000 and is selected when purchasing the insurance policy.
| Characteristics | Values |
|---|---|
| What is it called? | Medical Payments Coverage, MedPay, or Med Pay |
| What does it cover? | Medical and funeral expenses for the policyholder, passengers, or a member of the policyholder's family in the event of an auto accident, regardless of who is at fault. |
| What does it not cover? | Injury expenses beyond the policy's coverage amount, damage to vehicles or property, and injuries to the driver and passengers in another vehicle in an accident where you are at fault. |
| How much does it cost? | Typically between $1,000 and $10,000, or up to $100,000, depending on the state and insurer. |
| Is it mandatory? | No, it is optional in most states and not offered in every state. In some states, it is mandatory. |
| What is the difference between MedPay and PIP? | Personal Injury Protection (PIP) is more comprehensive and covers lost wages, rehabilitation costs, and other non-medical losses. PIP is mandatory in no-fault states. |
What You'll Learn
Medical payments coverage (MedPay)
Medical payments coverage, also known as MedPay, is an optional coverage type for auto insurance policies in most states. It helps pay for medical and funeral expenses when the policyholder, passengers, or a member of the policyholder's family is hurt in an auto accident, regardless of who is at fault. MedPay is especially useful for those without health insurance or those with high deductibles and co-pays, as it can help cover out-of-pocket costs.
MedPay covers a range of expenses, including hospital visits, surgeries, X-rays, ambulance fees, and health insurance deductibles and co-pays. It can also cover specific diagnostics and treatments, such as X-rays and chiropractic care. Additionally, it can provide financial protection for passengers in the car at the time of the accident and even protect you as a pedestrian.
The availability and mandatory nature of MedPay vary by state. While some states offer it as an optional policy, others may require it by law. In states that do not offer MedPay, Personal Injury Protection (PIP) coverage is typically available instead. PIP is similar to MedPay but is more comprehensive and covers lost wages in addition to medical bills.
When determining the amount of MedPay coverage needed, it is essential to consider your specific needs, financial situation, and other insurance coverages. MedPay limits typically range from $1,000 to $10,000, or even up to $100,000 in some cases, depending on the state and insurer. It is generally recommended to carry coverage equal to your health insurance deductible to help cover any out-of-pocket medical expenses.
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What MedPay covers
MedPay, or medical payments coverage, is an optional coverage type for auto insurance policies in most states. It covers the cost of medical expenses for the policyholder, their passengers, or their family members in the event of a car accident, regardless of who is at fault.
MedPay covers a range of medical expenses, including:
- Hospital visits, stays, and emergency room visits
- Nursing services and extended care
- Ambulance and EMT fees
- Health insurance deductibles and co-pays
- Surgery, X-rays, and dental procedures
- Chiropractic visits
- Prosthetics and other medical mobility devices
MedPay can provide financial security and peace of mind, especially if your medical insurance doesn't cover all your expenses following an accident. It is worth noting that MedPay does not cover wage reimbursement if you are unable to work due to your injuries, nor does it cover medical costs for injuries to other drivers involved in the accident.
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What MedPay doesn't cover
MedPay is a useful form of insurance coverage to have in the event of a car accident, but it does not cover every scenario.
Firstly, MedPay does not cover lost wages if you are unable to work due to your injuries. If you are injured and unable to work, you will not be reimbursed for any lost income. This also applies to replacement services for tasks you cannot perform due to your injuries, such as housekeeping or childcare.
MedPay also does not cover medical expenses unrelated to the car accident. For example, if you have an ongoing health issue that requires treatment, MedPay will not cover the cost of that treatment.
Additionally, MedPay has a coverage cap, and will not cover costs above your policy's limit. It is also important to note that MedPay does not cover damage to vehicles or other property. While it covers medical expenses for you and your passengers, it does not cover injuries to the driver and passengers in another vehicle if you are at fault for the accident. There is separate bodily injury liability coverage available for this scenario.
Finally, MedPay does not cover funeral costs in the event of a fatal crash.
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How much MedPay you should have
The amount of MedPay coverage you should have depends on your financial situation and the amount of coverage you already have.
MedPay is usually sold in small amounts, such as $1,000, $2,500, or $5,000. The limit you choose will determine how much your insurance will pay out after a car accident. The higher your coverage limit, the higher your monthly premium will be.
Before choosing your medical payments coverage limit, it is wise to check your health insurance plan. For example, if your health insurance has low deductibles and copays, a few thousand dollars' worth of MedPay coverage might be enough. However, if you have high deductibles or no health coverage at all, you might consider higher MedPay limits.
If you have personal injury protection (PIP), you don't need MedPay. PIP is more extensive than MedPay and covers wage reimbursement if injuries force you to miss work. However, MedPay typically doesn't involve a deductible, whereas PIP often does.
MedPay is a good investment, even if you have health insurance or PIP, as it can fill in any coverage gaps and reimburse you for out-of-pocket expenses. It is also useful if you frequently drive passengers who aren't part of your family, as MedPay typically applies to anyone riding in the car at the time of the accident.
It is important to note that MedPay is not available in every state and is required in only two states: Maine and New Hampshire. In some states, you cannot buy MedPay because PIP is required.
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MedPay vs liability coverage
Medical Payments Coverage, also known as MedPay, is an optional additional coverage for auto insurance policies in most states. MedPay covers the cost of medical expenses for you and your passengers, regardless of who is at fault in the accident. This includes medical treatments, surgeries, procedures, deductibles, co-pays, extended nursing services, and hospitalisation. It also covers you as a pedestrian if you are injured by a vehicle.
Bodily Injury Liability Insurance, on the other hand, covers the cost of treatment for people other than you or your passengers. It covers medical expenses, compensation for pain and lost wages, legal fees, and funeral costs for a person in another car if you are at fault in an accident.
MedPay is a good idea if you are unsure if you could afford medical bills after an accident, especially as it covers your passengers' medical expenses, too. It is also useful if you do not have health insurance, or if your health insurance has high deductibles or co-pays. MedPay can also be useful in urban areas, where there is a higher likelihood of pedestrians being injured.
Bodily Injury Liability Insurance is required by law in most states and will cover the other driver's property or bodily injuries if you are found at fault in an accident.
The main differences between MedPay and Liability Coverage are who they cover and what they cover. MedPay covers the driver, their passengers, and pedestrians, while Liability Coverage is for people other than the driver and their passengers. MedPay covers medical expenses, while Liability Coverage can include compensation for pain, lost wages, and legal fees.
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Frequently asked questions
Medical payments coverage, also known as MedPay, is an additional coverage option for auto insurance policies. It helps to pay for medical expenses for you or your passengers in the event of a car accident, regardless of who is at fault.
MedPay can help cover expenses related to hospital visits, surgeries, ambulance fees, health insurance deductibles and co-pays, and more.
The cost of medical payments coverage varies depending on the state and insurer, but it is generally a low-cost option. Limits typically range from $1,000 to $10,000, or even up to $100,000 in some cases.
MedPay can be useful even if you have health insurance, as it can help cover your out-of-pocket costs, such as deductibles and co-pays. It can also provide coverage for expenses that your health insurance may not, such as ambulance rides or chiropractic visits.
