Auto Insurance And Medical: What's Covered And What's Not

If you've been in a car accident, you may be wondering how you'll pay for your medical care. Your health insurance will usually cover your injuries, but car insurance can also help. Medical payments coverage, or MedPay, is an optional form of auto insurance that covers medical and funeral expenses after a car accident, regardless of who is at fault. MedPay can be used to pay for health insurance costs, hospital visits, surgeries, and more. Personal injury protection (PIP) is another type of coverage that pays for medical and related expenses for you and your passengers, regardless of fault. PIP is mandatory in no-fault states and covers a wider range of expenses than MedPay, including lost wages. Both MedPay and PIP can be used in conjunction with health insurance to cover any gaps in coverage and provide additional financial protection.

What is MedPay?

Medical Payments Coverage, or MedPay, is an optional add-on to your auto insurance policy that covers medical expenses related to vehicular accidents. It covers you, your passengers, and even pedestrians you may injure. It also covers you if you are a passenger in another vehicle or are injured as a pedestrian or bike rider.

MedPay is supplemental to your health insurance and can help cover out-of-pocket costs such as deductibles and co-pays. It can also be useful if the at-fault driver is uninsured or if their insurance company is disputing liability. MedPay usually provides coverage regardless of fault, so it can help pay your medical bills if you are at fault in an accident.

MedPay limits typically range from $1,000 to $10,000, depending on the state and insurer. It is a good idea to carry coverage equal to your health insurance deductible so that you can use MedPay to cover your out-of-pocket medical expenses.

MedPay covers a variety of expenses, including:

• Health insurance deductibles and co-pays
• Doctor or hospital visits
• Ambulance and EMT fees
• Surgery, X-rays, and dental procedures
• Rehabilitation and nursing care
• Some medical equipment, such as prostheses

Does health insurance cover car accidents?

If you're injured in a car accident, your health insurance will usually cover your medical treatment, but there are some important nuances to be aware of.

Health insurance policies generally cover medical expenses, regardless of how the injury occurred. This means that your health insurance will likely cover your medical bills to some extent if you're injured in a car accident. However, the specific coverage provided will depend on your insurance plan and the circumstances of the accident.

In most cases, car insurance will pay for the treatment of car accident injuries first, until the coverage limits are reached. After that, your health insurance will typically cover any remaining costs. This is known as the coordination of benefits principle, which determines the order in which your insurance policies pay out.

Your auto insurance, especially if you have Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage, will usually act as the primary payer for accident-related medical expenses. Once these coverages are exhausted, your health insurance may step in to cover additional costs.

It's important to review the terms of your health insurance policy regarding accidents. Some policies may classify health insurance as secondary to other available insurance, including auto policies. In this case, your health insurance may only cover expenses not covered by your auto insurance.

Additionally, your health insurer may have the right to reimbursement if you receive a settlement from the at-fault party's insurer or from another source. This process is known as subrogation, where your health insurance claims the right to payment for the expenses they covered that are attributable to the accident.

While health insurance typically covers car accident injuries, there may be instances where certain treatments, such as alternative forms of treatment, are not covered under your plan. It's important to carefully review the details of your health insurance coverage to understand any restrictions or limitations.

What does MedPay cover?

MedPay, or medical payments coverage, is an optional add-on to your car insurance policy in most states, but it is required in some. It covers medical expenses and funeral costs after a car accident, regardless of who is at fault. This includes:

• Health insurance deductibles and copays
• Hospital visits and stays
• Ambulance fees and emergency room services
• Rehabilitation costs
• Medical, dental, surgical, and chiropractic care
• X-rays and prostheses
• Nursing care
• Funeral costs following a fatal crash

MedPay also covers you if you are injured in a car accident in someone else's car, or as a pedestrian or cyclist. It may also extend to non-relatives who are passengers in your vehicle at the time of the accident.

MedPay does not cover lost wages, medical expenses unrelated to the car accident, or replacement services for tasks you cannot perform due to injuries, such as housekeeping or childcare.

MedPay vs. PIP

Medical Payments (MedPay) and Personal Injury Protection (PIP) are both no-fault insurance coverages that pay for injuries to the insured driver and their passengers in an accident, regardless of who is at fault. However, there are some key differences between the two.

MedPay

MedPay is an additional coverage that may cover your medical, surgical, dental, and chiropractic treatments after an accident. It is considered more limited than PIP and is optional in all but two or three states. MedPay covers medical expenses for the insured, other drivers listed on the policy, members of the insured's household, and passengers. It typically has no deductible or copay and can pay costs quickly. Depending on state law, MedPay can supplement your health insurance coverage or function as primary medical coverage after an accident. MedPay is relatively inexpensive, adding about $5 to $30 to your premium, with a maximum payout between $5,000 and $10,000.

PIP

PIP provides comprehensive benefits that go beyond simply paying medical bills after an accident. It covers an array of medical expenses, including physical and occupational therapy, psychiatric services, rehabilitation, and other professional health services. PIP also covers compensation for lost wages, death benefits, and other reasonable non-medical or work-related losses. PIP coverage is available immediately after an accident and may be mandatory in no-fault states. PIP coverage limits are higher than MedPay and can extend to things like funeral costs. PIP coverage varies between states, with some requiring a minimum of $2,500 per person in coverage. The cost of PIP coverage can vary significantly depending on the state, with some states having significantly higher premium costs.

While both MedPay and PIP cover medical bills after an auto accident, MedPay does not include coverage for lost wages, rehabilitation, or other essential services like PIP does. If you live in a no-fault state, you are required to purchase either MedPay or PIP, and adding MedPay on top of PIP may be redundant. However, MedPay is cheap and can be beneficial if your health insurance policy has a high deductible. Additionally, MedPay can help cover the medical bills of passengers who don't have health insurance.

MedPay vs. Bodily Injury Liability Coverage

MedPay, or Medical Payments Coverage, is an add-on to an auto insurance policy that covers expenses related to vehicular accidents. It covers the policyholder, any passengers in their vehicle, and any pedestrians they may injure. It also covers the policyholder if they are a passenger in another vehicle or are injured by a vehicle as a pedestrian, bike rider, or public transportation rider. MedPay takes effect regardless of which driver is considered at fault for the accident. It is supplemental to your regular health insurance, and rules and regulations vary by jurisdiction about which is the primary payer for various treatments and medical expenses.

Bodily Injury Liability Coverage, on the other hand, applies to injuries that the policyholder or anyone insured under their policy becomes legally responsible for as a result of an accident. It covers bodily injury to a person in another car in an accident where the policyholder is at fault. It pays for medical expenses, compensation for long-lasting physical pain and lost wages, legal fees, and funeral costs.

The main difference between the two is that MedPay covers the policyholder and their passengers, while bodily injury liability coverage applies to a third party. MedPay applies regardless of fault, while liability insurance only ever pays for damage caused by the policyholder. MedPay is also supplemental to a health insurance plan, helping to avoid expensive deductibles, copays, and coinsurance costs.

Frequently asked questions