If you or your passengers get hurt in a car accident, it’s good to have coverage that can help pay for the unexpected medical expenses.
Medical payments coverage is also known as MedPay. It’s an optional car insurance coverage type that pays for your and your passengers’ medical bills and other types of expenses, no matter who was at fault for the accident. But it’s not available in every state and you may have better options.
What Does MedPay Cover?
MedPay generally covers the following types of expenses for you and your passengers, no matter who is at fault for the car accident.
- Ambulance fees
- Dental procedures
- Doctor visits
- Funeral fees
- Health insurance deductible and copays
- Hospital visits and stays
- Nursing services
- Prostheses
- Rehabilitation costs
- Surgery
- X-rays
MedPay may also cover you if you’re injured:
- In a car accident in someone else’s car
- From a car accident when you were a pedestrian
The amount of MedPay coverage you buy represents the maximum amount available to each person who is covered under your policy. For example, if you purchase $2,000 of MedPay coverage and you and your passenger are hurt in a car accident, you’ll have up to $2,000 each in MedPay coverage.
What’s Not Covered by MedPay?
In addition to a coverage cap, there are certain expenses not covered, including:
- Lost wages if you can’t work
- Medical expenses not related to the car accident
- Replacement services for tasks you cannot perform due to injuries, such as housekeeping or child care
Where Can I Buy Medical Payments Coverage?
MedPay coverage is widely available in most states. In the following states, MedPay is required or it must be offered.
In other states you may be able to buy MedPay insurance but there’s no requirement for the purchase or that it be offered.
Do I Need Medical Payments Coverage?
Car owners are required to buy medical payments coverage in two states:
- Maine: Car insurance in Maine requires at least $2,000 per person in MedPay.
- New Hampshire: You are not required to have car insurance in New Hampshire, but if you choose to buy it, you must purchase at least $1,000 in MedPay coverage.
In most states, you will have the option to purchase MedPay, but you may have some better options. For example, if you live in a state where personal injury protection (PIP) is required or available, it’s generally the better option (read more about the differences between PIP and MedPay below).
If PIP is not available in your state, you may want to consider adding MedPay to your car insurance policy. If you or your passengers get hurt because of a car accident, it can help cover expenses that are not covered by health insurance, such as funeral costs and your health insurance deductibles and copays.
How Much MedPay Coverage Should I Buy?
MedPay is usually sold in small amounts between $1,000 and $5,000. When deciding how much coverage you need, a good place to start is looking at the health care coverage you already have in place, including your health insurance deductible.
MedPay covers certain expenses that your health insurance does not, such as funeral expenses and your health insurance deductible and copay.
For example, if you have a high deductible health plan, MedPay can help offset the deductible if you get hurt in a car accident.
What’s the Difference Between Medical Payments Coverage and Personal Injury Protection?
MedPay and PIP are similar. While both cover medical expenses after a collision no matter who was at fault, a few key differences set them apart:
- PIP covers lost wages if you can’t work due to accident injuries, while MedPay does not.
- PIP covers replacement services, such as other housekeeping or lawn care services, while MedPay coverage does not.
- PIP is required in 15 states and optional in four states and the District of Columbia, but is unavailable in other states. MedPay is available in most states and required in Maine and New Hampshire (if you choose to buy car insurance).
- MedPay is sold in small amounts (usually between $1,000 and $5,000) while PIP is sold in larger amounts, depending on your state.
In some states, you may have the option to buy both MedPay and PIP. Since PIP covers more expenses, it’s generally considered the better option. You typically don’t need to buy both since you would be buying redundant coverage.
MedPay vs. PIP
What’s the Difference Between Medical Payments Coverage and Liability Car Insurance?
MedPay and liability car insurance cover very different types of problems.
- Liability car insurance covers property damage and bodily injuries you accidentally cause to others. For example, if you cause a car accident and the other driver is hurt, liability car insurance pays for their medical expenses (up to your policy limit). It also covers your legal costs if you are sued because of an accident.
- Medical payments coverage pays for you and your passengers’ medical costs and other expenses (up to your policy limit) no matter who is at fault for the accident. It does not cover property damage or your legal costs.
Liability car insurance is required in all states except New Hampshire and Virginia. If you get caught driving without car insurance, you could face fines, penalties and even jail time.
MedPay is an optional coverage in most states. It is required only in Maine and New Hampshire.
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