What Is Medical Payments Coverage?

Last Updated on August 8, 2020

Medical payments coverage, also known as MedPay, pays for the medical bills of you and any of your passengers that are injured in an auto accident. MedPay will pay for damages no matter who is at fault for the accident. It will also pay for injuries you sustain as a passenger in another car and injuries you sustain as a pedestrian if you are hit by a car.

Many people are tempted to drop medical payments coverage from their auto insurance policy because they think their medical bills will be covered by their health insurance. While this is oftentimes the case, it still doesn’t make sense to completely drop MedPay from your car insurance. MedPay can be useful in a large number of scenarios.

Continue reading below to learn everything there is to know about medical payments coverage including when it’s needed, how much it costs, and whether or not you should buy it.

When Is Medical Payments Coverage Needed?

Medical payments coverage is needed to cover the medical costs incurred after you get hurt in an auto accident. MedPay will pay no matter who was found at fault for the accident.

medical payments coverage explainedFurthermore, medical payments coverage can help you pay for funeral costs and passenger injuries. It can even help pay your medical bills if a car hit you while you were walking or biking. Depending on your package or provider, you can even get dental care paid for.

When most people think of auto insurance, they think that is used to pay for vehicle repair only. There are many car insurance coverage types and add-ons, however, that pay can pay for medical expenses resulting from a car accident. MedPay is one of them. Others include personal injury protection (PIP) and bodily injury liability coverage (BIL).

To make sure that you’re covered for your medical expenses after a serious accident, you should add medical payments coverage to your policy.

MedPay State Requirements

While medical payments coverage is generally an option, your state might require it to be written into your policy.

MedPay is required in both Maine and New Hampshire. If you live in one of the 12 no-fault states (Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah), you are required by law to carry personal injury protection coverage. PIP works in a very similar way to MedPay and can oftentimes be interchangeable. PIP, however, is generally known to be a bit more comprehensive in nature.

Even if MedPay is not required in your state, you can clearly see all the benefits outlined here. There is a serious safety net you put in place when you get medical payments coverage tacked onto your existing car insurance policy. Why take the chance of your health insurance not covering everything?

Check the minimum coverage requirements for your state here to see whether or not MedPay is required.

Should You Get Medical Payments Coverage?

If medical payments coverage is not required in your state, there are still a few good reasons to add it to your auto insurance policy.

If your health insurance provider already covers extensive injuries incurred in car accidents, then you might think that there is little reason to shell out even more money for medical payments coverage. If your health insurance provider doesn’t provide coverage for car accident injuries, however, then it makes a lot of sense to purchase medical payments coverage.

If you plan on carpooling a lot, it also makes sense to add-on MedPay as it will cover the medical bills for all passengers in your vehicle.

Medical payments coverage, however, is not a replacement for health insurance. MedPay usually has limits of $10,000, $25,000, $50,000, or $100,000 paid per accident. In these days of exuberant medical costs, it’d be quite a risk to drop your health insurance coverage thinking that MedPay will cover you in most situations.

Is Medical Payments Coverage Expensive?

Your medical payments coverage can cost a lot if you have a poor driving record. If you have a good driving record, however, the costs can be quite affordable. Your MedPay premium will be based on your driving record, claims history, age, sex, location, and other determining factors.

With that being said, the average medical payments coverage policy often costs less than $20 annually for $10,000 worth of coverage. Even coverage limits of $25,000 or $50,000 are often very affordable. The low premium amounts of MedPay policies make them an attractive add-on to drivers wishing to maximize coverage at minimal costs.

What Exactly Is Covered by Medical Payments Coverage?

Medical payments coverage can help you pay for exorbitant medical bills if you get into a serious wreck and your health insurance provider just doesn’t come through. It’s that extra layer of protection. It can help you stay out of debt in the event of a serious medical catastrophe that your health insurer just won’t cover fully – or at all.

Medical bills and funeral expenses are covered, but a lot more is covered, too. Let’s take a closer look at what’s covered.

  • Your medical bills if you are injured in a car accident
  • The medical bills of passengers in your vehicle injured during an accident
  • Your medical bills if you are injured as a passenger in someone else’s vehicle
  • You medical bills if you get hit by a car while you’re cycling, walking, or jogging

Medical payments coverage can cover a whole lot of stuff that your health insurance plan might not. Or, if you don’t have health insurance (as required by law), medical payments coverage can help provide a safety net if you’re injured in a serious auto accident.

Medical Payments Coverage Will Cover the Following Medical Bills:

  • Doctor’s visits
  • Hospital stays
  • Dental care
  • Long-term care
  • Emergency surgery
  • X-Rays
  • EMT & ambulance fees
  • Professional nursing care or rehabilitation
  • Chiropractic care
  • Prosthetic limbs (or other medical necessities that are typically too expensive to afford on your own)
  • Lost wages
  • Childcare

Final Word on Medical Payments Coverage

To recap, let’s take a look at some quick facts and details about medical payments coverage:

  • Can easily be added on to any car insurance policy
  • Covers you or anyone in the car with you regardless of who is at fault
  • Offers an extra layer of protection to insured drivers who enjoy walking or cycling
  • Will take effect once health insurance limits are exceeded

Remember that MedPay is not a replacement for health insurance (or vice-versa). Even if you’ve got a stellar health insurance package that covers your medical expenses if you’re injured in a car accident, medical payments coverage can help cover the cost of your passengers if they get hurt in an accident. If you’re the driver, consider the benefits offered to your passengers.

You just never know the kind of damage a car accident can cause you, and that’s why it’s smart to protect yourself to the fullest with medical payments coverage. The old adage, “better to be safe than sorry,” applies to medical payments coverage. Why risk getting behind the wheel and causing a serious accident? Driving is always risky. Even the best drivers can get into a crash now and then.

If you’d like to add medical payments coverage to your existing car insurance policy, call up your auto insurance company today. MedPay can easily be added to most policies with a simple five-minute phone call.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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