How much medical payments coverage do I need?

Question

The difference between medical payments coverage (MedPay) and PIP (personal injury protection) is that PIP covers both medical bills and non-medical expenses after an accident, like loss of income and childcare. By comparison, MedPay insurance only applies to direct medical costs and funeral expenses. Both types of insurance cover the policyholder and their passengers after any car accident, regardless of fault.... read full answer

Medical Payments vs. PIP Insurance Coverage

Category	MedPay	Personal Injury Protection
Requirement	Only required in Maine	Required in 13 states
Medical Bills	Covered	Covered
Lost Income	NOT covered	Covered
Childcare Costs	NOT covered	Covered
Nursing Services	Covered	Covered
Funeral Expenses	Covered	Covered
Copayments/Coinsurance	Covered	NOT covered
Deductible Payment	None	Depends on the state and policy

Your ability to choose between PIP and MedPay depends mostly on your state. For example, just over half the states offer MedPay only, while other states allow you to purchase both types of coverage.

In states that offer both PIP and MedPay, you should consider purchasing them together. Even though they offer similar coverage, MedPay can cover deductibles, copayments, and coinsurance that come with PIP, so the two can complement each other.

To learn more, check out WalletHub’s guides to medical payments coverage and personal injury protection.

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Answer 1 · 2021-05-03 19:26:03

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@WalletHub • 05/03/21 This answer was first published on 05/03/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You need $1,000 or $2,000 in medical payments (MedPay) coverage in the two states that require it: Maine and New Hampshire. If MedPay is optional in your state, the exact amount of MedPay that you need depends on a few factors, including what other types of insurance you have and how robust your emergency fund is. Even if you have overlapping coverage, like personal injury protection (PIP) or health insurance, MedPay is generally a good investment because it is inexpensive and complements other types of insurance.

How Much MedPay You Need by State

New Hampshire: $1,000+ for drivers who choose to purchase coverage
Maine: $2,000+
Other States: optional

Medical payments coverage pays for your medical expenses after an accident regardless of who was at fault, so it usually overlaps with PIP and standard health insurance. But MedPay can also cover deductibles, copayments, and coinsurance expenses that come with other types of coverage, so it can help you avoid additional costs if you’re severely injured in an accident.

What to Consider Before Purchasing Medical Payments Coverage

When deciding how much MedPay you want to purchase, you should consider what types of coverage you already have and their associated costs. For example, if you have a high deductible health insurance policy, MedPay can help you reduce your out-of-pocket medical expenses after an accident. And if you live in a state that requires PIP, MedPay can be used as a backup in case your policy limits are exhausted by severe injuries.

In addition to existing coverage (and state laws for those in Maine and New Hampshire), you should consider your financial situation when deciding whether or not to purchase MedPay. If you have a lot saved up for a rainy day, for instance, then it’s probably fine to skip the additional coverage. But considering that MedPay often costs less than $10 per month, the added peace of mind is usually worth the minor investment.

To learn more, check out WalletHub’s guide to medical payments coverage.

How much medical payments coverage do I need?

WalletHub, Financial Company

How Much MedPay You Need by State

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