Many don’t realize medical payments coverage, or “MedPay” for short, could be beneficial in a detrimental time following an auto accident.
MedPay is an optional auto insurance coverage that can assist with reasonable or necessary medical expenses resulting from an auto accident; regardless of who may be at fault. This includes, but is not limited to emergency room visits, doctor’s fees, tests, surgery costs, and many other medical or funeral bills.
You also do not have to always be in a vehicle to receive MedPay benefits, if any motor vehicle hits you while you are walking or riding a bike, MedPay steps in and can cover some of your medical expenses as well.
MedPay is intended to be a reimbursement coverage. So for example, MedPay limits typically range from $1,000 to $10,000, if your out-of-pocket medical expenses were only $500, MedPay will reimburse you for the $500 you paid.
However, the limit of your coverage is the maximum that the insurer will pay per person in an accident. Make sure that you select the best fitting coverage for you; any amount of bills that surpass this limit will be your duty to pay.
It is important to note, this coverage also only provides benefits to the policyholder, passengers, and anyone (with permission of course) driving the covered vehicle.
When choosing your coverages, do consider what health insurance you also are currently enrolled in. Many health insurance providers will usually require you to have a co-insurance or deductible paid for emergency care. With a higher limit MedPay coverage than your insurance deductible, it will help cover that and any additional costs.
A common misconception about coverage of medical payments is with auto liability insurance. Auto liability insurance is required in most states, but will only cover the other driver’s property or bodily injury if you are at fault for an accident. It may also cover your passengers’ medical expenses in some states. This will not grant coverages in the same way that MedPay does.
Speak with your insurance agent about MedPay if you believe you may want to review your policy and add these additional coverages.