What Is Medical Payments Coverage (MedPay)?
Medical payments coverage is a type of car insurance that pays for medical expenses when a car accident results in injuries to the policyholder, their passengers, or other drivers listed on the policy. This coverage can be used after any accident, regardless of fault, and it is often referred to as “MedPay.”
Key Things to Know About Medical Payments Coverage
- MedPay often costs less than $10 per month.
- Coverage applies after any car accident, regardless of fault, including when the policyholder is hit by a vehicle while walking, cycling or riding public transit.
- MedPay does not require the policyholder to pay any deductibles or copays.
- MedPay insurance is similar to personal injury protection but does not offer as much coverage.
- You should consider purchasing MedPay even if you already have health insurance or personal injury protection.
How Medical Payments Coverage Works
Medical payments coverage works by filling coverage gaps between auto and health insurance to make sure medical bills get paid quickly. MedPay pays for accident-related medical expenses for the policyholder and their passengers regardless of fault, so there is no need to wait for fault to be determined or for the other driver’s insurance to pay for your claim. Additionally, MedPay coverage never requires any copays or deductibles, and it can even be used to pay deductibles and copays for health insurance or PIP.
Without MedPay, you may have to rely on the at-fault driver’s liability policy (or your own coverage for uninsured drivers) to have your medical bills paid for. Unfortunately, bodily injury liability coverage has limitations of its own, namely that it can take months to determine fault. In the meantime, you’d be paying for your own medical expenses hoping that you’ll be reimbursed.
What MedPay Does and Does Not Cover
|What MedPay Covers||What MedPay Doesn’t Cover|
|Medical bills normally covered by health insurance||Lost wages|
|Professional nursing services||Childcare and other non-medical related expenses|
|Funeral expenses||Property damage|
|Deductibles, copays, and coinsurance for other types of insurance||Other drivers’ injuries|
Cost of MedPay
Medical payments coverage often costs less than $10 per month, making it an extremely affordable insurance option. The exact cost of medical payments insurance depends on a few factors, including your driving history, the type of car that you drive, and the amount of coverage that you purchase. The higher your coverage limits, the higher your premium will be.
Medical Payments Coverage vs. PIP Coverage
In some states, you may be required or have the option to buy personal injury protection (PIP) insurance. Like MedPay, PIP will cover health care costs for you, your family and your passengers. Unlike MedPay, PIP insurance can cover more than just medical expenses. It may also compensate you for things like lost income and child care expenses. Keep in mind that PIP often has a deductible and may require the consumer to pay a percentage of medical bills.
MedPay and PIP insurance can complement each other. You can use MedPay to pay the deductibles and coinsurance that consumers are responsible for under PIP. And if medical bills exceed the limits of your PIP insurance, MedPay can cover the remaining amount.
Learn more about medical payments coverage vs. PIP coverage.
Do You Need Medical Payments Coverage?
Maine and New Hampshire are the only states that require drivers to carry medical payments coverage. Even if MedPay is not required, it is almost always a good investment since it is an affordable way to make sure medical bills for you and your passengers will get paid after a car accident.
Even if you already have health insurance or PIP, MedPay can fill in any coverage gaps and reimburse you for out-of-pocket expenses. Considering that the average bodily injury claim after an accident in 2019 was $18,417, according to the Insurance Information Institute, a health insurance plan might not be able to cover all of your expenses. Plus, MedPay coverage extends to passengers who are not part of your household – and who may or may not have health insurance themselves.
Ask the Experts
To gain more insight about Medical Payments Coverage (MedPay), WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.
1. Is Medical Payments Insurance or Personal Injury Protection better?
2. What types of drivers should purchase MedPay?
3. When should drivers get both MedPay and PIP?
4. What is the biggest advantage of MedPay over Liability Insurance?