What Is Medical Payments Coverage on My Car Insurance Policy?

Is Medical Payments Coverage Required?

MedPay is typically an optional add-on coverage in the states where it's offered. In fact, it's only required in two states. In Maine, you must maintain at least $2,000 in coverage per person. In New Hampshire, you must maintain at least $1,000 in coverage per accident.

Medical payments coverage is typically not offered in states with no-fault insurance laws. These states require both drivers in an accident to file a claim with their own insurer, regardless of who was at fault in the accident. Instead of MedPay coverage, they typically require personal injury protection (PIP).

There are 12 no-fault insurance states:

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

What Does MedPay Cover?

MedPay provides coverage for you and other passengers in your vehicle and can help pay some or all of your medical expenses in the event of an accident, no matter who caused it.

It can also cover your medical bills if you're hit by a vehicle as a pedestrian. Coverage amounts typically range from $1,000 to $10,000. The types of medical expenses your MedPay covers may include:

• Deductibles and copays for your health insurance plan
• Doctor and hospital visits
• Ambulance and emergency fees
• Medical treatments, procedures and surgeries
• Prostheses
• Dental procedures
• Extended hospitalization or nursing services
• Funeral costs

That said, it typically won't cover lost wages if your injuries cause you to miss work. It also won't cover the injuries sustained by the driver or passengers of another vehicle.

How Much Does MedPay Cost?

The cost of medical payments coverage will depend on how much coverage you choose, where you live and the insurer. In general, though, you can expect to pay $10 or less per month, which translates to $120 or less annually.

Learn more: How Much Does a Car Insurance Policy Cost?

What's the Difference Between MedPay, PIP and Bodily Injury Liability?

MedPay and PIP offer similar coverages, though unlike MedPay, PIP may also cover lost wages and household services you need due to injury, such as child care, house cleaning or yard work. Both types of coverage are optional in most states, but PIP is required in more states. What's more, you typically can't purchase both.

With bodily injury liability insurance, your coverage extends only to people in the other vehicle if you cause a collision. A minimum amount of bodily injury liability coverage is required in most states. Also, maximum limits tend to be much higher, largely due to the additional types of expenses covered, which can include legal fees and pain and suffering.

Learn more: How Much Car Insurance Do I Need?

Should I Get Medical Payments Coverage?

MedPay may be worth considering if you live in a state that offers it and your health insurance plan has a high deductible or significant copays for doctor and hospital visits. Your medical payments coverage can fill in some of those gaps left open by your health plan.

Also, if you're in a car accident caused by the other driver, it could help you get reimbursed more quickly because you don't have to wait for your insurance company to collect the money from the other driver's insurer.

However, it might not make sense to purchase coverage if you have a low health insurance deductible or you have a sizable emergency fund that can cover your out-of-pocket expenses. If this is the case, look at the potential cost of adding MedPay to your insurance policy and compare it to the potential costs you'll incur if you get in an accident.

The Bottom Line

Even though medical payments coverage is optional in most of the states where it's available, it can be highly valuable in helping you pay for costly medical bills. This is especially true if you have a high-deductible health plan.

As with other types of car insurance coverage, it's important to think carefully about how it can help you and how much it costs to maintain. Also, be mindful as you determine how much coverage to get. While it may be easy to just go for the maximum amount, run the numbers for your situation to ensure that you get the right amount of coverage. Comparing quotes from several insurers is a good way to start determining potential costs.