According to ValuePenguin, the United States experiences over five million car accidents. Over 60% of these accidents result in minor or major injuries that incur high medical bills. This is why medical payment auto insurance is among the most important aspects of coverage. It helps safeguard responsible parties in the aftermath of a collision or crash.
Unfortunately, most new drivers have little to no knowledge about auto insurance medical coverage, nor its terms, options, and policy types. In this post, we will delve into the details, explaining how this coverage works and why you should consider adding it to your policy.
Find Cheap Auto InsuranceWhat Is Medical Payment Coverage in Auto Insurance?
Auto insurance medical coverage, or MedPay, is an optional coverage offered by most insurance companies operating in different states. Although you're not legally required to carry it, it's highly recommended that you carry it, especially if you can't afford to cover medical bills after sustaining injuries in an accident you caused. It's similar to liability insurance. The only difference is that it covers your expenses while the latter covers the victims.
If you're injured in a collision, auto insurance medical payments can cover the following:
● Ambulance and emergency services fees
● Doctor visits or hospital stays
● Professions nursing
● Physiotherapy and other post-recovery services
● Diagnostics (X-rays, MRIs, etc.)
● Surgery and dental procedures
● Funeral expenses
● Health insurance deductibles, etc.
How Automobile Insurance Medical Payments Work
Drivers involved in an accident can receive payments directly or include MedPay in their health insurance to increase total coverage. However, the terms and conditions may vary from provider to provider or state regulations (fault or no-fault state).
If you use medical payment auto insurance as your primary coverage, you have to pay medical bills upfront and file a reimbursement claim. While this may not be financially viable to many, it does come with perks like no deductibles or copays.
If MedPay is not your primary coverage, then your bills will be partially or fully covered by your health insurance company, depending on your policy.
Key Benefits of Medical Payment Coverage
Below are the main reasons opting for a policy offering automobile insurance medical payments is a smart decision:
1.No-Fault Coverage
Medical payment coverage covers the recovery expenses of drivers, regardless of who was at fault in the accident that caused the injuries.
2.Passenger Coverage
Most auto insurance medical coverage policies extend protection to passengers, including family members, friends, and other individuals.
3.Pedestrian Coverage
Medical payment coverage also covers drivers getting hit by a vehicle. Hence, you don't have to be behind the wheel for the policy to apply.
Drawbacks of Medical Payment Auto Insurance Coverage
Like most coverage policies, medical payment auto coverage isn't without a few drawbacks, including:
1.No Lost Wages Coverage
Unfortunately, auto insurance medical payments do not reimburse wages missed due to medical treatment and recovery.
2.Limited Coverage
MedPay typically covers up to $10,000. Some insurers can offer up to $25,000 in coverage. However, if your treatment requires more money, you'll need to cover the remaining amount out of pocket.
3.Not a Substitute for Liability Coverage
As mentioned earlier, medical coverage insurance is optional. However, liability insurance isn't. Therefore, including the additional coverage increases your premiums, making it unaffordable for many drivers.
Find Cheap Auto InsuranceMedical Payments Coverage vs. Personal Injury Protection (PIP)
Medical payments coverage and personal injury protection (PIP) both cover medical expenses for drivers and passengers following accidents. However, there are a few notable differences you should know about:
1.Availability
PIP is only available for drivers operating vehicles in no-fault states like Florida, Hawaii, Minnesota, New York, and North Dakota.
2.Legal Requirement
PIP is mandatory in many states, while medical payment auto insurance coverage is optional almost nationwide.
3.Non-Medical Coverage
As mentioned earlier, medical payment coverage only covers expenses related to treatment and recovery. However, PIP covers non-medical expenses, such as lost wages, child care, and transportation.
4.Coverage Limits
PIP limits vary from state to state. However, they're much higher than medical payment coverage, up to $250,000 or more.
How to Assess Your MedPay Coverage Needs
If you're thinking about including MedPay in your auto insurance policy, you need to do your homework. Before looking for providers, consider factors like your primary health insurance coverage. Most providers require policyholders to pay a deductible between 10% and 20%, forcing you to cover some of the expenses out of pocket.
So, opt for medical payment coverage if your health insurer doesn't cover all or most of your accident-related injury expenses. You can also use MedPay as your primary coverage following accidents to avoid deductibles.
Additionally, your MedPay premium will vary according to your coverage amount. For instance, drivers opting for $5,000 will pay less every month than drivers opting for $10,000 in additional protection.
How Much Does Medical Payments Auto Insurance Cost?
With hundreds of active providers in the auto insurance industry, coverage policies are available at varying prices. However, regardless of the insurance company, location, or coverage limit you opt for, you can expect to pay between $2 and $37.
The Final Word
MedPay is among the most sought-after optional auto insurance coverages in the market. Today, more drivers are looking to protect themselves and their passengers from the financial consequences of car accidents. This coverage takes care of medical expenses associated with injuries sustained, ensuring you cover all your bases when operating a vehicle and fill any gaps in your health insurance.
If you're intrigued by the prospect of including auto insurance medical payments in your coverage policy, simplify and accelerate your search by using BindRight's powerful search tool to find and compare hundreds of options in your area, side by side.