What's the difference between medical payments coverage and PIP? This question is about Medical Payments Coverage (MedPay)

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. 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.

Ad Disclosure Ad Disclosure

What's the difference between medical payments coverage and PIP?

Answer Question Report Abuse

This question is about Medical Payments Coverage (MedPay)

see this user

WalletHub, Financial Company

@WalletHub • 05/10/21 This answer was first published on 05/10/21. 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.

Permalink Report Abuse

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.

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.

Answer Question

Should I buy PIP insurance?

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.

For more information, check out WalletHub’s complete guide to personal injury protection.

show less

Is medical payments coverage necessary?

How much PIP insurance should I have?

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.

To learn more, check out WalletHub’s guide to personal injury protection.

show less

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.