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    Medical Payments Coverage

    What does medical payments insurance cover? Medical payments coverage or MedPay plays a crucial role in any motorist’s health insurance policy. It helps pay for several first- and third-party auto-related injuries. This auto insurance add-on applies to any truck driver, passenger, helper, pedestrian, or motorist involved in covered incidents.

    Despite the auto insurance medical payments add-on’s versatility, policyholders still overlook it since most states do not require this coverage. However, state-mandated bodily injury liability insurance offers limited protection. See how adding MedPay to your auto insurance policy protects you from a broader range of unforeseen incidents and accidents.

    What Is Medical Payments Coverage?

    Medical Payments coverage or MedPay is an auto insurance add-on. It covers various liabilities arising from traffic accidents, including medical expenses, long-term maintenance medication, income loss, and legal settlement charges. Policyholders can file claims for first- and third-party damages.

    MedPay In A Nutshell

    MedPay covers a broad range of liabilities that might arise from a road accident. It offers a more extensive scope than bodily injury liabilities and costs less than PIP coverages. Motorists can supplement their auto insurance policy with MedPay.

    Additionally, motorists who drive long miles regularly would benefit from extra MedPay coverage. For instance, bodily injury only covers third-party liabilities. Meanwhile, MedPay also pays for the treatments you, your driver, or your passengers may need, such as x-ray bills, ambulance fees, long-term consultations, and surgery.

    PIP also covers the same expenses, but it typically costs more. You can get more coverage for far less than what insurers charge for standard PIP insurance.

    However, MedPay does not substitute bodily injury liability or PIP. 48 states require motorists to carry bodily injury liability insurance — 15 of which also require PIP. Remember that MedPay only serves as an add-on.

    How MedPay Works

    Instead of relying solely on MedPay when filing claims, use it to cover the gap between your liabilities and policy coverage. As mentioned above, MedPay serves as an add-on. Although it cannot stand alone, it prevents the need to pay liabilities out of pocket by increasing bodily injury liability or PIP limits.

    For instance, let’s say a motorist gets into a road accident. They accumulate $13,000 worth of first- and third-party liabilities but only carry $10,000 in insurance. So who shoulders the excess $3,000?

    If the motorist only has bodily injury and PIP, they’ll have to pay for any liabilities exceeding their coverage limit out of pocket. Also, bodily injury liability only pays for injured individuals in another vehicle, and PIP shoulders first-party injuries. However, if the motorist has MedPay, it can cover the gap between their first- and third-party liabilities and coverage limit.

    What Medical Payments Insurance Covers

    What does medical payments insurance cover? MedPay covers the motorist, passengers, and the pedestrian or motorist they might injure. Some shouldered expenses include:

    • Accident-related checkups and consultations 
    • Ambulance fees and EMT
    • Funeral costs
    • Hospital confinement
    • Long-term recovery
    • Loss of limbs
    • Nursing services
    • Post-accident dental procedures
    • Surgery

    How to Determine Your MedPay Coverage Needs

    Your MedPay coverage needs primarily depend on your existing PIP and bodily injury liability policy. MedPay should compensate for possible coverage gaps. It offers versatile protection from first- and third-party liabilities at relatively lower rates. You’ll get more coverage for every dollar.

    Most states require split limits of $100,000 and $300,000 for bodily injury per person and accident, respectively. However, this amount is often lower than the minimum financial protection you need during road accidents. 

    Instead of spending hundreds of bucks for extra insurance, opt for MedPay. Although policy premiums vary case by case, most motorists get around $5,000 worth of coverage for just $5 to $10.

    Frequently Asked Questions

    When it comes to auto insurance, medical payments coverage add-ons typically get overlooked by policyholders who don’t see their value. Motorists would instead use their funds on their business. To help you better understand medical payments coverage, check out what auto policyholders commonly ask about this add-on.

    What is not covered by car insurance medical payments?

    Medical payments insurance does not cover property damages. Policyholders can only file claims within their coverage limits on first- and third-party bodily injuries.

    How much MedPay should you have?

    MedPay is optional in most states except Maine and New Hampshire. These states require motorists to carry a minimum of $2,000 and $1,000 worth of medical payments coverage, respectively.

    What is the difference between MedPay coverage and liability coverage?

    Bodily injury liability insurance pays for the treatment of third-party injuries, while MedPay extends to both first- and third-party damages. Also, MedPay covers legal fees, lost wages, long-term recovery, and final expenses apart from medical bills.

    The Takeaway

    Overall, medical payments insurance protects you from first- and third-party injury liabilities. It goes beyond standard medical coverage liabilities, so truckers and motorists always on the road would benefit from this add-on significantly. Also, adjust your MedPay according to the coverage gaps in your liability policy for maximum protection.

    Does your trucking business have adequate insurance in case your vehicles get damaged? Assured Standard can help with the computation! Check out our comprehensive guide explaining what truckers should know about physical damage coverage.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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