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What is Medical Payments Insurance? What Does MedPay Cover?

What is Medical Payments Insurance? What Does MedPay Cover?

Medical payments coverage, or MedPay, handles your medical expenses if you’re injured in a car accident, regardless of who’s at fault. It’s your quick-pass to getting those hospital bills taken care of.

Medical payments coverage is part of an auto insurance policy. It may help pay your or your passengers’ medical expenses if you’re injured in a car accident, regardless of who caused the accident.

This coverage is usually optional and not available in all states.

Do you need medical payments coverage on a car insurance policy?

MedPay is an optional car insurance coverage in most states where it’s offered, so you probably aren’t legally required to carry it. However, it may make sense for you if you’re not sure you could afford to pay your medical bills after a car accident, let alone your passengers’.

If you have health insurance, MedPay can also help cover your out-of-pocket costs, such as your deductible. If you don’t have health insurance, you should definitely consider MedPay to give yourself peace of mind and potentially avoid the financial burden of major medical expenses.

Keep in mind that Med Pay isn’t offered in every state, though it’s available in most. States that don’t offer MedPay typically have personal injury protection (PIP) coverage available instead. Learn more about the car insurance your state offers and requires.

What does MedPay cover?

If you’re involved in an auto accident, medical payments coverage can take care of expenses such as:

  • Doctor visits
  • Hospital visits or stays
  • Nursing services and care
  • Ambulance and EMT fees
  • Health insurance deductibles and co-pays
  • Funeral expenses
  • Surgery, X-rays, and dental procedures

How much medical payments coverage do I need?

MedPay limits typically range from $1,000 to $10,000, depending on the state and insurer. It’s generally a good idea to carry coverage equal to your health insurance deductible, so you can use MedPay to cover your out-of-pocket medical expenses. If you don’t have health insurance, you should consider carrying a higher MedPay limit to help pay your medical bills after an accident.

What are the limits of medical payments coverage?

Your MedPay coverage limit is the maximum amount your insurer will pay per person per accident for a covered loss. These limits often get discussed when first enrolling, and multiple options are typically available. Selecting the right limit is important because any amount owed for medical bills over the coverage limit will be your responsibility to pay.

If you need help choosing a coverage limit that fits your needs, you may want to think about the cost of short-term emergency medical expenses after a car accident.

For example, say you had to go to the emergency room with injuries after an accident. Your health insurance might pay for some of the ER visit, but your health coverage may require you to pay a $2,000 deductible and a co-insurance payment for the emergency medical services.

That’s where medical payments coverage on your car insurance policy may help. In the above scenario, if you had selected a coverage limit of $3,000, your medical payments insurance could help pay your health insurance deductible and some of your co-pay for your ER visit.

Many health insurance providers typically require you to pay a deductible or co-insurance payment up to 20% for emergency care. If you select medical payments coverage with a higher limit than your health insurance deductible, it can help cover your deductible and any remaining medical costs.

What’s the difference between liability coverage and medical payments coverage?

Medical payments coverage is usually optional. So, if you cause a car accident and don’t have medical payments coverage, you will have to pay out of your own pocket for your medical bills.

On the other hand, auto liability coverage is required by law in most states. Your auto liability coverage will not pay for your or your passengers’ medical bills after a car accident.

If you cause a car accident, the bodily injury liability portion of your car insurance coverage helps pay for the other party’s medical expenses. Likewise, if another driver is at fault for an accident that injures you, their auto liability coverage may help pay for your medical bills.

FAQ

What does medical payments coverage include?

Medical payments insurance covers medical expenses for you and your passengers after a car accident, regardless of fault. It typically includes hospital visits, surgeries, X-rays, ambulance fees, and other necessary treatments.

Is medical payments coverage required by law?

Medical payments coverage is optional in most states. Some states may offer it as an add-on, while others require drivers to have a minimum level of personal injury protection (PIP) instead.

How does medical payments coverage differ from health insurance?

Medical payments coverage pays for accident-related medical costs immediately, without deductibles or copays. Health insurance may cover similar expenses but often requires you to pay out-of-pocket costs first and may have limitations on coverage.

Does medical payments insurance cover lost wages?

No, medical payments coverage only applies to medical expenses. It does not reimburse lost wages, pain and suffering, or other non-medical costs. Personal injury protection (PIP) may offer broader benefits, including lost income coverage.

Can medical payments coverage be used with other insurance?

Yes, medical payments coverage can work alongside health insurance, PIP, or liability coverage. It can help cover out-of-pocket medical costs that other policies might not fully reimburse.