Medical payments coverage can be a useful supplement to your health insurance in a car accident.
You probably have health insurance, but it may not cover all of your medical costs from an auto accident. Medical payments coverage can help fill in the gaps.
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What is medical payments coverage?
Medical payments coverage or med pay helps you with your medical costs resulting from a car accident — no matter who’s at fault.
It covers you and your passengers and can pay for such expenses as:
- Ambulance fees
- Surgery
- Funerals
- Dental care
- Prosthetic limbs
- Hospital visits
Medical payments coverage doesn’t only apply to auto accidents. It can also protect you outside of your vehicle, such as when you’re walking or riding your bike.
Does it come with a deductible?
Med pay doesn’t come with deductibles or copays. In fact, you can use it to pay for your health insurance deductible after an auto accident.
What is a deductible?
The deductible is what you’ll pay before your insurance company will pay a claim.
Let’s say you file a claim to your insurance company for a $5,000 car repair bill. Your insurance covers you for that amount, but it includes a $500 deductible. This means you must pay $500 out of your own pocket before your insurance will cover the other $4,500.
How it’s different from personal injury protection
Med pay is similar to personal injury protection in that it covers medical costs after an accident. The policies differ in many ways, however, such as:
- Med pay doesn’t have deductibles or copays. PIP does.
- PIP covers more costs — such as lost income and psychiatric services.
- Both are mandatory in different states, but PIP is required in more states.
Medical payments coverage in action
As a result of an auto accident, you need a $7,000 medical operation. You have health insurance, but it comes with a $1,500 deductible and a 20% copay. In total, you’re looking at an out-of-pocket expense of $2,900.
Luckily, you’ve purchased medical payments coverage that pays for your deductibles and copays. Instead of paying $2,900 for your operation, you pay nothing.
Why should I buy medical payments coverage?
If you already have car insurance and health insurance, you might be wondering why you need medical payments coverage. Aren’t they pretty much the same thing?
Though there will be overlap between the two, they don’t provide the same coverage. In fact, there are many costs your health insurance may not cover, such as prosthetic limbs, ambulance fees and funeral expenses. Medical payments coverage will take care of those costs. It can also pay for your health insurance deductibles or copays.
If you live in Maine or New Hampshire, you’re required to have medical payments coverage.
How much does medical payments coverage cost?
Adding medical payments coverage to your insurance policy typically costs around $5 a month. In total, you’ll probably pay less than $100 a year.
How do I buy medical payments coverage?
Your current insurance provider will offer medical payments coverage — contact them and ask for more details.
Providers that offer medical payments coverage
Bottom line
Medical payments coverage can be a useful add-on to protect you from unexpected medical costs. As a bonus, it doesn’t cost too much more per month. Don’t be afraid to shop around for the best price on car insurance.
Find the cheapest rates
Compare the best car insurance companies near you.
Your information is secure.