What Is Med Pay Auto Insurance? Medical Payment Coverage Explained

What is Med Pay Coverage?

May 30, 2018

NYC ambulance

You understand bodily injury liability, property damage, you even know all about uninsured motorist coverage. Then you see ‘med pay’ and you’re stumped. Do you really need another level of coverage? Aren’t my injuries covered under something else? We’ll explain all.

What is Medical Payment Coverage?

Medical Payments Coverage is more commonly known as ‘Med Pay’. It’s a type of health insurance coverage that will help to pay for medical bills that you incur after an accident. It can also cover any passengers in the vehicle of the insured driver.

In essence, Med Pay can cover medical bills such as hospitalization, various screenings and even funeral costs. Depending on your provider, the terms and the limits that you take out, Med Pay can cover anything from injuries following an accident to trapping your hand in the car door.

How Med Pay Works

If you or anyone in your vehicle sustains injuries from an auto accident, regardless of fault, Med Pay is immediately available to assist with medical bills. In other words, if you’re not at fault for an accident, you don’t need to wait for the other driver’s insurance company to handle your costs. But if they do, you may have return Med Pay funds.

Is Med Pay different to Health Insurance?

It’s important to sit down and understand how both of your policies work, as it’s likely you’ll have sizeable gaps that Med Pay can cover.

While the cost for Med Pay amounts to a small percentage of what your annual auto insurance policy costs, this coverage is capped – usually around $25,000. Because Med Pay is “no fault” coverage, it doesn’t matter who is found liable for an accident; you’ll receive compensation for applicable medical bills either way.

Here are some of the costs Med Pay may cover:

  • Ambulance costs
  • Hospitalization and surgery
  • Various tests and screenings, such as X-Rays
  • Funeral services
  • Some specialist costs, such as chiropractic and dental expenses

While bearing many similarities to Personal Injury Protection (PIP) Med Pay features many distinctions that are important to note. For example, while PIP can cover up to 80 percent of lost wages, Med Pay does not offer a similar benefit. PIP carries a deductible, Med Pay does not.

Phew. It’s complicated, right? It helps to read the guides on Compare.com and really do your research to see what works for you and what kind of coverage is best for you and your family.

Mandatory PIP States

There are 12 “no fault” states, where it’s mandatory for drivers to select either PIP or Med Pay. These states include:

In Maryland, Washington and Texas, drivers can avoid mandatory coverage by signing a waiver.

Med Pay and Personal Injury Protection (PIP) overlap considerably as insurance coverages. While each offer distinct features, drivers often choose one or the other. Medical payment coverage may not offer as broad a coverage as PIP, but its cost can be as low as $20 annually for $10,000 of coverage. It’s your decision whether you want to invest in Med Pay, but you may find the extra $20 is worth it.

Ready to see how your premiums stack up? Get a quote with Compare.com today and see if Med Pay makes a big difference to your premium. Start now!

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