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.
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.
Yes, you should buy PIP insurance if you live in one of the 13 states where it is required. You should also buy personal injury protection (PIP) insurance if it’s available in your state and you would need financial support in the event that you’re injured in a car crash. Even if you have health insurance, PIP can still be a good investment because it is inexpensive and does not involve as many out-of-pocket costs.… read full answer
PIP insurance is available in 21 states and covers medical expenses, legal fees, and lost wages after a car accident regardless of who was responsible. Besides covering the policyholder, PIP applies to passengers in the policyholder’s car, too. It also applies to named drivers on the policy who are hit by a car while biking or walking.
In some states, drivers may be able to purchase medical payments insurance (MedPay) instead. MedPay also covers the policyholder’s medical expenses after an accident, but it does not cover lost wages or child care. MedPay does not require any copays or deductibles, so it can be a good alternative if PIP is not available.
You should have $2,500 to $30,000 in PIP coverage per person in states that require personal injury protection (PIP), though exact requirements vary by state. Even if it’s not mandatory in your state, you should purchase as much PIP coverage as you can comfortably afford. For example, $10,000 in PIP coverage will ensure that you're covered for at least basic medical expenses and some lost wages.… read full answer
Personal injury protection pays for your medical expenses after an accident, regardless of who was at fault. As a result, purchasing higher limits can better protect you against hefty expenses that may result from injuries.
What to Consider Before Purchasing PIP Coverage
When deciding how much PIP to purchase, you should consider how much coverage you can afford as well as the coverage offered by any health insurance that you have. If you have a reliable health insurance policy, you may be able to purchase lower PIP limits, since the coverage overlaps in some areas.
However, you should keep in mind that PIP also covers certain long-term expenses that don’t typically fall under health insurance, like lost income and household services. Additionally, PIP can help cover the deductibles and copays that you’re typically required to pay with health insurance, so you’ll have fewer out-of-pocket costs.
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