No matter what state you live in, you’re more than likely required to carry some sort of auto insurance. Whether it’s auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, or personal injury protection. But one coverage plan isn’t often discussed: Medical Payments Coverage (MedPay). Today we will discuss the pros and cons of adding it to your current auto insurance policy coverage and let you decide if it’s worth it in the long run!
Find Cheap Auto InsuranceWhat is Medical Payment Auto Insurance?
Medical payments (MedPay) coverage is additional coverage you can add to your auto insurance policy to protect you and cover expenses from automobile accidents. Medical payment coverage, or “MedPay,” will cover you whether you’re driving your vehicle or if you’re tagging along with someone else, passengers in your car, pedestrians you may injure, or if you’re injured by a vehicle as a pedestrian, bike rider, or public transportation rider.
How does Medical Payment Auto Insurance (MedPay) Apply?
Here are several examples of when medical payments “MedPay” coverage could help pay for medical or funeral expenses caused by an auto accident:
- Your spouse or other covered family member is injured when hit by a car while acting as a pedestrian.
- You or a family member are injured when you hit another automobile while driving through a parking lot or garage.
- One of your passengers complains of neck pain or discomfort after the automobile you're driving is rear-ended by another vehicle.
- Your child is harmed in an accident while a passenger is in a friend or other family member’s automobile.
What Additional Expenses will Medical Payment Auto Insurance “MedPay” Cover?
For peace of mind, here are a few examples of what MedPay will cover:
- Ambulance fees
- Hospital stays and fees
- Diagnostic costs, such as X-rays
- Surgery costs
- Doctor appointments
- Skilled care — such as nursing — as a result of injuries
- Funeral expenses
- Deductibles or copays due to your health insurance company
Which Situations will MedPay Not Cover?
Although having MedPay as a source of coverage is an excellent idea before you sign up, you should be made aware of some things that are not covered by Medical Payment Auto Insurance “MedPay.”
- Injuries over your current policy’s coverage amount
- Damage caused to other vehicles or damaged property
- Injuries to other drivers and passengers in another vehicle sustained in an accident for which you are at fault. (There is separate bodily injury liability coverage available for this)
- Lost wages
- Childcare and other non-medical related expenses
How much MedPay should you have, and how much does MedPay coverage cost?
Currently, MedPay is only required in Maine and New Hampshire. But if you don’t have health insurance, adding MedPay to your current auto insurance policy might be a good idea.
Unlike health insurance, there aren’t deductibles or co-payments if you have medical payment coverage. MedPay kicks in when the first dollar of incurred expenses hits, no matter who's responsible for the accident, you or the other person, you’ll be covered.
MedPay will also cover expenses your current health insurance may not, such as chiropractic therapy or a ride in an ambulance.
The best part of MedPay is that it’s inexpensive, and MedPay often costs less than $10 per month!
Now that you have a better understanding of what MedPay is and what it does to keep you covered, let’s take a moment to compare the difference between MedPay and Personal Injury Protection (PIP). We’ll also discuss the difference between Bodily Injury Liability and MedPay coverage.
What's the Difference Between Personal Injury Protection (PIP) and Medical Payments Auto Insurance Coverage?
Personal injury protection (PIP), or no-fault insurance, will help cover expenses like medical bills, lost wages, or funeral costs after a car accident, no matter who is at fault. Requirements for this coverage will vary from state to state.
Similar to medical payments coverage (MedPay), personal injury protection (PIP) will help cover your or your passengers' medical expenses after a car accident, regardless of who caused the accident.
Here are a few differences between personal injury protection (PIP) and medical payments coverage (MedPay):
- Personal unjust protection (PIP) is available in "no-fault" states, such as Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
- Medical payments coverage (MedPay) is offered in states that aren't "no-fault. (Medical payments coverage is only available in states that don’t provide personal injury protection (PIP.)
- Depending on state law, personal injury protection (PIP) will be optional or required. Medical payments insurance (MedPay) is always an optional coverage.
- Personal injury protection, unlike MedPay, will help cover expenses such as lost wages from missing work or child care if you can’t perform essential services due to injuries after an automobile accident. Medical payments insurance (MedPay) will not cover essential services.
What’s the Difference Between Bodily Injury Liability Insurance Coverage and Medical Payments Auto Insurance Coverage (MedPay)?
Bodily injury liability coverage applies to injuries you or anyone insured under your policy - like a family member or spouse becomes legally responsible for as a result of an accident. Medical payments coverage (MedPay) pays for medical expenses incurred by you or passengers in your vehicle, regardless of who is at fault for the accident.
Here’s a list of items Bodily injury liability insurance will cover:
Medical expenses for those involved in the accident. Liability coverage will help cover emergency medical care, hospital bills, follow-up doctor or hospital visits, and medical equipment costs, such as wheelchairs, crutches, or braces.
Physical pain. If injured persons have long-lasting physical pain, this coverage may help compensate them.
Lost wages. If the injured person can’t work due to injuries sustained in the accident, your coverage could help cover their lost wages.
Legal fees. If the injured party files a lawsuit related to the accident, your bodily injury liability insurance can help cover your legal costs.
Funeral costs. Your bodily injury liability coverage can help cover funeral costs if the accident is fatal.
Bodily injury liability coverage can save you from significant financial strain in the event of the unexpected. If you want to add bodily injury liability to your policy, get a quote comparison through BindRight!
A good thing to note is that certain states will not allow you to combine MedPay and Bodily injury liability; Texas, for example, is one of those states. So be sure to ask your current insurance provider if your state will allow you to add MedPay coverage to your current bodily injury liability plan. Most states do require that you have bodily injury liability coverage either way.
Does MedPay Apply to Home Insurance too?
The quick answer is yes! MedPay will cover the medical expenses of someone injured in your home or your property to help avoid them suing you. If you are sued for the injury, your liability coverage will pay the costs of that person’s injuries. Examples of injury in your home or property could be a neighbor or friend tripping and falling. If they don’t want to sue you, go through the court process, and just want their medical expenses paid, MedPay will have them and you, the homeowner, covered.
Key Takeaways on Medical Payment Auto Insurance (MedPay):
With most states in the U.S. requiring different types of auto insurance, you’re forced to be covered. Still, If you had the chance to protect yourself and everyone in your life that matters to you most, even in the most dramatic and devastating situations, would you?
Accidents happen, so it’s imperative to see which auto insurance coverage suits your needs most, and adding MedPay might benefit you and your loved ones long term. And to be better safe than sorry, now you can consider if MedPay linked to your home insurance may be a good idea in case of any around-the-house uh-ohs.
Find Cheap Auto InsuranceReady to Learn More?
We think you’ll enjoy these quick reads:
Are you interested in adding MedPay coverage to your policy?
Regarding car insurance, you’ve got plenty of policy options. BindRight can help you find the right coverage at the best rate!
