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Medical payments insurance, also known as MedPay, can help cover medical bills related to injuries from an auto accident — no matter who was at fault.
This coverage, which you can add to your car insurance policy for extra protection, isn’t legally required in most states. But you may want to take a look at what MedPay has to offer before deciding whether to purchase it or not.
Read on for a look at what MedPay covers and how it could help reduce the financial impact if you or one of your passengers requires medical treatment after a car accident.
Key Points
• Medical payments coverage is an optional auto insurance add-on that helps pay reasonable medical expenses for you and your passengers after a car accident, regardless of who was at fault.
• Payments are typically processed promptly because the coverage kicks in without waiting for an insurer to determine fault, and there is no copay or deductible required before coverage begins.
• Coverage limits typically range from $1,000 to $10,000, making this coverage useful for quickly paying smaller medical bills rather than serving as a substitute for health or liability insurance.
• Qualifying expenses include doctor visits, emergency room stays, prescription medications, lab tests, surgeries, physical therapy, nursing services, dental treatment, and funeral costs, but not lost wages or non-accident treatments.
• This coverage is only required in Maine and New Hampshire, but is available as an optional add-on in most other states, except Minnesota, New York, North Dakota, and Oregon.
How Does Med Pay Work?
MedPay is an optional auto insurance add-on that’s designed to help pay for reasonable medical expenses for you and your passengers after a car accident. It may also extend to you or a household member if you’re hit by a car while walking, jogging, or riding a bike — or if you’re injured while you’re a passenger in someone else’s car.
Because MedPay coverage typically kicks in without waiting for an insurer to determine who was at fault, payments are often processed more promptly. And there’s no copay or deductible that you have to pay before MedPay coverage starts.
There are, however, limits on how much MedPay coverage you can purchase. (Usually from $1,000 to $10,000.) So although MedPay can be a useful way to quickly pay off smaller medical bills and other qualifying costs, it isn’t meant as a substitute for other types of insurance, such as health insurance or your auto policy’s bodily liability coverage.
To maximize the benefits of your MedPay coverage, it’s important to contact your insurer as quickly as possible after your accident. And after you file your claim, it’s a good idea to keep track of all communications, costs, and payments.
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What Does MedPay Cover?
A wide range of accident-related expenses may be eligible for MedPay, within your chosen coverage limit, including:
• Doctor visits (including health insurance deductibles and copays)
• Emergency room visits and hospital stays
• Prescription medications
• Lab tests and X-rays
• Surgical procedures
• Physical therapy or chiropractic treatment
• Nursing services
• Dental treatment
• Funeral expenses
MedPay doesn’t cover lost wages, treatments that aren’t the result of a car accident, or services you may need because of your injury, such as child care or yardwork. When it comes to those costs, you may have to rely on other types of car insurance coverage.
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MedPay vs Personal Injury Protection (PIP)
If you’re thinking that MedPay sounds similar to Personal Injury Protection (PIP), you’re right. Both can help cover your medical expenses (or your passengers’ bills) after a car accident, no matter who’s at fault. But there are also some key differences.
• PIP is required in more states. Though some states offer both types of coverage, MedPay is currently required in only two states: New Hampshire and Maine. In comparison, 12 states require drivers to have PIP coverage: Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. These states are all no-fault states, which means drivers involved in a car accident file claims with their own insurance companies, no matter who caused the accident. You must exhaust your PIP coverage before you can file a claim with the at-fault driver’s liability auto insurance.
• PIP may cover more than MedPay. Along with medical bills and funeral costs, PIP may also cover lost wages or pay for child care. (Coverages vary by state, however, so be sure to review your policy.)
• PIP has higher coverage limits. PIP coverage limits can go as high as $100,000 or more, while MedPay coverage is generally limited to less than $10,000.
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How Much MedPay Coverage Do You Need?
There are a few factors that you may want to consider when determining how much MedPay coverage you need. These can include:
• What type of health insurance coverage do you have? If you have reliable health insurance with a low deductible and low copays, you might decide that a lower MedPay limit is all you need.
• How are you doing financially? Can you afford to pay out of pocket for some of your medical expenses if you’re in an accident? If not, MedPay may help you cover the gaps in your coverage.
• What does your state require? If you live in a state that mandates MedPay, there may be a required minimum amount.
• How much will the premiums cost? Depending on the limit you choose, MedPay coverage can be relatively inexpensive compared to other types of insurance.
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Is MedPay Worth It?
If MedPay isn’t required in your state, you might be wondering if it’s worth adding the extra expense to your auto insurance policy — or how much insurance coverage you really need.
While you’re making that decision, keep in mind that the costs associated with medical care after an accident can sometimes be quite steep. And even if you’re confident you could cover your own expenses — with good health insurance, for example, or out of your own savings — you can’t know if every passenger in your car will have the same resources to pay for their care. If you can manage a small bump in the cost of your auto policy, you might find having that extra layer of coverage is worth it.
It may be helpful to review your overall insurance plan to get a clear idea of what you have and if there are any coverage gaps and then do some comparison shopping to see what it might cost to add MedPay to your plan.
The Takeaway
Adding medical payments coverage (MedPay) to your auto insurance policy could help you pay some or all of the medical bills resulting from an accident — no matter who’s at fault.
In most states, MedPay is optional (unlike PIP coverage, which is legally required in all 12 no-fault insurance states). But even if you don’t have to have it, you may want to consider adding this affordable protection to safeguard yourself, your passengers, and your finances.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
Is medical payments (MedPay) coverage required by law?
MedPay coverage is only required in Maine and New Hampshire, but it is available as optional coverage in most other states.
Does MedPay cover passengers in my car?
Yes, MedPay covers passengers who are in your car when you’re in an accident.
Can you use MedPay if you have health insurance?
Yes. MedPay isn’t meant to be a substitute for health insurance, but it can help cover costs your insurance doesn’t — including deductibles and copays.
In which states is MedPay not available?
MedPay coverage is available in every U.S. state except Minnesota, New York, North Dakota, and Oregon.
How do you file a MedPay claim?
To maximize the benefits of your MedPay coverage, it’s important to contact your insurer as quickly as possible after your accident. You may be able to file your claim online at the insurer’s website, or you can call your agent and get information about next steps.
Photo credit: iStock/Anastasiia Havrysh
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