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.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.