What Is MedPay?
The medical payments section of an auto insurance policy pays for necessary medical expenses, up to your chosen limit, for injuries received from a car accident.
Medical Payments: different states, different rules
Depending on your state, medical payments (MedPay) may be a required or optional coverage on your auto insurance policy. Some states offer no-fault medical payments coverage, which pays regardless of who caused the accident.
Who does Medical Payments (MedPay) cover?
If you have MedPay, your auto insurance policy provides medical coverage to:
- You, the named insured;
- Your resident family members; or
- Uninsured passengers in your car at the time of an accident
With some exclusions, this coverage applies when you are injured in a car accident as a driver or passenger, a bicyclist, or a pedestrian.
How to choose a MedPay limit
The medical payments limit you choose is the most your auto insurance company will pay for your injuries resulting from an auto accident.
When choosing a MedPay limit, ask yourself the following questions:
- Does your auto insurance policy provide medical expense coverage through another method, such as personal injury protection (PIP)?
- Does your health insurance plan cover injuries from a car accident?
- What is your health insurance deductible and co-payment?
- Are you financially prepared to pay out-of-pocket for medical expenses if you are in an accident?
Depending on your state, MedPay typically does not have a deductible. Review your policy to understand your limits and obligations.
What’s the difference between MedPay and bodily injury coverage?
A first-party coverage is insurance that benefits you, the named insured, and your resident family members. Examples include MedPay, personal injury protection (PIP), collision and other-than-collision, and uninsured/underinsured coverage.
Since MedPay is a first-party coverage, your insurance will pay for covered losses, up to your limit. In contrast, bodily injury coverage is a type of liability insurance that is paid by the other driver’s insurance company, if they are at fault for the accident.
A third-party coverage is liability insurance that compensates the person who you injured or whose property you damaged.
Liability insurance has two main coverage types: property damage and bodily injury. Anyone insured under your auto insurance policy is ineligible to receive payments from your liability insurance.
How to report a MedPay claim
Report your accident to your insurance company as soon as possible. Some states have a specific timeframe when a claim must be filed for medical payments claims; review your policy to know the requirements.
You will need to provide:
- Your personal information and the information of your passengers or family members who might have been injured in the accident.
- Details about the accident, such as the date, time, and location.
- Information about the medical providers or hospital you used after the accident.
- Medical invoices, diagnostics, and other documentation.
Your insurance company will either pay the medical provider directly or reimburse you for your out-of-pocket costs.