Med Pay car insurance coverage is insurance that covers the medical costs that incur as a result of your auto accident; PIP (personal injury protection) offers the same benefits plus more options, however, PIP has a deductible.
As a result, PIP can be a bit more expensive than Med Pay auto insurance coverage, depending on the deductible amount you choose. If you live in a no fault auto insurance state, then you may be required to carry Med Pay or PIP insurance on your vehicle.
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What You Want to Know About Med Pay
The first thing that you want to know about Med Pay is that it is not a replacement for health insurance. Med Pay is very limited in the amount of coverage that it offers. In most no fault states, you can expect to be allowed to purchase a maximum of $25,000 worth of coverage in Med Pay. This amount of coverage can usually cover minor to moderate injuries, but certainly not long term care as a result of an accident. Once your Med Pay coverage is exhausted then your regular health insurance kicks in and picks up the remaining portion of the expenses.
Med Pay is not like a health insurance option. You don’t hand an insurance card to the check-in desk at the doctor’s office or hospital and ask them to direct bill. Instead, one of two things will occur. If you go to the hospital, you will be billed at a later date and you can forward those bills to your insurance company for payment. If you go to a place, like a doctor’s office, that requires payment up front, then you will have to pay and then submit a request for reimbursement from your auto insurance company. It doesn’t hurt to ask your doctor to bill you so that the insurance company can pay up front, however, it will be up to them, not to you.
NOTE: Many health insurance companies will not offer medical coverage for an auto accident until you have exhausted all of your Med Pay or PIP benefits. It is important to know your health insurance company’s policy on this subject before you try to get them to pay for your medical coverage after an accident.
Why Purchase Med Pay Car Insurance Coverage at All?
You may be wondering what the point is of purchasing Med Pay coverage if your health insurance company will pay for your injuries. There are two answers to this question. First of all, many no fault states require that you purchase medical coverage as part of your basic minimum coverage. In this case you will be required to carry a specified amount of coverage.
A major benefit to carry Med Pay is for the passengers in your vehicle. For example, what if your best friend’s son is in the vehicle with you and you caused an auto accident and he is injured. The Med Pay insurance will pay for his medical coverage as well (up to the maximum). When you purchase Med Pay, the maximum coverage option is per person involved in the accident, not an accident total. Remember, your liability insurance only covers those in the other vehicle.
In addition, if you don’t have your own health insurance coverage, for whatever reason, then having basic medical coverage after an accident is better than no coverage at all. If you choose Med Pay and you don’t have a deductible, this coverage can cover most of your injuries if they aren’t too severe.
Med Pay versus PIP Coverage
The first thing that you need to know is that you don’t need to purchase both of these coverage options; you should choose either Med Pay or PIP for your medical coverage requirements in a no fault state.
PIP, however, offers much more coverage than Med Pay. Med Pay covers hospital and doctor’s visits as well as chiropractic care. In addition, Med Pay will cover the ambulance used to take you to the hospital after the accident. If a death occurs in the accident, Med Pay offers a death benefit as well. PIP offers more coverage options, such as rehab, lost wages, and any medical treatments needed as a result of the auto accident. Of course, this means the coverage is more expensive because it covers more.
The choice you make will depend on your state requirements as some no fault states requires you carry PIP while other stipulate that you carry medical without specifying coverage. In addition, your personal preference will affect your choice; you need to ask yourself what type of coverage you need.
Choosing the right insurance options doesn’t have to be complex and getting great prices on the auto insurance you choose shouldn’t be difficult either. Once you have decided what options you should consider, you can use a free car insurance quote tool to compare prices between these options as well as between auto insurance companies.
Using our car insurance comparison tool will ensure you get the lowest possible price on your auto insurance, allowing you to save money for something else or increase your insurance coverage, if you would like, because you have already budgeted a specific amount. Quote tools from independent sources are unbiased, fast and easy to use. Just enter your zip to start seeing how much you might be able to save!