The Benefits of Medical Payments Coverage

Have you ever wondered what would happen if you or your passengers got injured in a car accident? How would you pay for the medical bills that could pile up quickly? Would your health insurance cover everything? What if the other driver was uninsured or underinsured?

According to a 2021 report by the National Highway Traffic Safety Administration (NHTSA), there were 6.8 million police-reported motor vehicle crashes in the United States in 2020, resulting in 36,096 fatalities and 2.7 million injuries. The average economic cost of a fatal crash was $1.5 million, while the average economic cost of an injury crash was $90,000.

If you want to protect yourself and your passengers from the financial burden of medical expenses after a car accident, you may want to consider adding medical payments coverage to your car insurance policy. Medical payments coverage, also known as MedPay, is an optional type of car insurance that covers the medical expenses of you and your passengers, regardless of who is at fault for the accident.

In this article, we will explain what medical payments coverage is and how it works, what are the benefits of having it, and how to get it and how much it costs.

What is medical payments coverage and how does it work?

Medical payments coverage is a type of car insurance that covers a wide range of medical costs related to injuries stemming from an automobile accident. It covers you and any passengers in your vehicle, any pedestrians you may injure, and you—if you are riding as a passenger in another vehicle or are injured by a vehicle as a pedestrian, bike rider, or public transportation rider.

Some of the medical expenses that medical payments coverage covers are:

• Ambulance fees
• Dental procedures
• Doctor visits
• Funeral fees
• Health insurance deductibles and copays
• Hospital visits and stays
• Nursing services
• Prostheses
• Rehabilitation costs
• Surgery
• X-rays

The amount of medical payments coverage you buy represents the maximum amount available to each person who is covered under your policy. For example, if you purchase $5,000 of medical payments coverage and you and your passenger are hurt in a car accident, you’ll have up to $5,000 each in medical payments coverage.

Medical payments coverage also has a deductible, which is the amount of money you have to pay out-of-pocket before your insurer pays for the rest of a claim. For example, if you have a $500 deductible and a $5,000 limit on your medical payments coverage, you will have to pay $500 first before your insurer pays up to $4,500 for your medical expenses.

The coverage takes effect regardless of which driver is considered at fault for the accident. This means that even if you caused the accident or if the other driver has no or insufficient liability insurance, your medical payments coverage can help you pay for your medical bills.

Medical payments coverage is optional in most states, except for Maine and New Hampshire, where it is required by law. In some states, such as Arkansas , Delaware , Maryland , Oregon , South Dakota , Texas , Virginia , Washington , and Wisconsin , insurers are required to offer medical payments coverage to their customers, but they can decline it if they choose.

What are the benefits of medical payments coverage?

Medical payments coverage can provide several benefits and advantages for drivers who want to have extra protection and peace of mind in case of an accident. Some of the benefits are:

• It can help you avoid paying out-of-pocket for costly medical bills that may exceed your health insurance limits or coverage. Depending on your health insurance plan , you may have to pay for deductibles , copays , coinsurance , or out-of-network fees that can add up quickly after an accident . Medical payments coverage can help cover these costs and reduce your financial burden .
• It can help you avoid lawsuits or disputes with other drivers or their insurers over who is responsible for paying for your medical bills . If you are injured in an accident that is caused by another driver who has no or insufficient liability insurance , you may have to sue them or their insurer to recover your damages . This can be a lengthy , costly , and stressful process that may not guarantee a favorable outcome . Medical payments coverage can help you avoid this hassle by paying for your medical bills regardless of fault .
• It can help you protect your assets and savings from being seized or garnished by creditors or collection agencies if you cannot pay for your medical bills . If you are uninsured or underinsured and you incur large medical bills after an accident , you may face serious financial consequences . Your creditors or collection agencies may try to collect your debt by suing you , garnishing your wages , freezing your bank accounts , or seizing your property . Medical payments coverage can help you prevent this scenario by paying for your medical bills before they become a debt .
• It can help you cover the medical expenses of your passengers who may not have health insurance or adequate coverage . If you have passengers in your vehicle who are injured in an accident , you may feel responsible for their medical bills , especially if they are your friends or family members . However , they may not have health insurance or their health insurance may not cover all of their medical costs . Medical payments coverage can help you cover their medical expenses and avoid putting them in a financial hardship .
• It can help you cover the medical expenses of your family members who are injured while driving or riding in your car or another car with your permission . If you have family members who are injured in an accident while driving or riding in your car or another car with your permission , they may not be covered by your health insurance or the other driver’s liability insurance . Medical payments coverage can help you cover their medical expenses and avoid leaving them uninsured or underinsured .

How to get medical payments coverage and how much does it cost?

To get medical payments coverage, you can add it to your existing car insurance policy or buy it as a standalone policy from most insurers. You can compare car insurance quotes from different insurers and find the best coverage and price for your needs. You can use online tools and resources that can help you find the best deals for your situation. For example:

• You can use comparison websites that allow you to enter some basic information about yourself, your vehicle, and your desired coverage level and get quotes from multiple insurers in minutes.
• You can use online calculators that estimate how much you can save by adding medical payments coverage to your policy or by changing other factors that affect your premium.
• You can use online reviews and ratings that provide feedback from other customers about their experiences with different insurers in terms of price, service, claims handling, and customer satisfaction.

Before you choose an insurer and sign up for a policy based on their quote, you should always read the fine print and understand the terms and conditions of the policy. You should also check the financial strength and reputation of the insurer to make sure they are reliable and trustworthy. You can use online sources such as AM Best , J.D. Power , or Better Business Bureau to find out more about an insurer’s financial stability and customer satisfaction.

The cost of medical payments coverage depends on several factors, such as:

• Your location: Your location affects your car insurance rates based on the crime rate, traffic density, weather conditions, and insurance regulations in your area. The higher the risk of accidents, injuries, or lawsuits, the higher your premium. The lower the risk, the lower your premium.
• Your vehicle type: Your vehicle type affects your car insurance rates based on its make, model, year, safety features, and value. The more expensive, powerful, or rare your vehicle is, the higher your premium. The cheaper, safer, or more common your vehicle is, the lower your premium.
• Your driving record: Your driving record reflects your driving behavior and history of accidents, violations, and claims. The cleaner your record, the lower your premium. The more blemishes on your record, the higher your premium.
• Your age: Younger drivers tend to pay more for car insurance than older drivers because they are considered more risky and inexperienced behind the wheel.
• Your limit: Your limit is the maximum amount that your insurer will pay per person or per accident for medical payments coverage. The higher your limit, the higher your premium. The lower your limit, the lower your premium.

• Your deductible: Your deductible is the amount of money you have to pay out-of-pocket before your insurer pays for the rest of a claim. The higher your deductible, the lower your premium. The lower your deductible, the higher your premium.

The average cost of medical payments coverage varies by state and insurer, but it is generally affordable compared to other types of car insurance. According to a 2021 analysis by NerdWallet, the average cost of medical payments coverage ranges from $5 to $30 per month, depending on the limit and deductible chosen.

You can lower your premium by taking advantage of discounts, such as bundling your policies, maintaining a good driving record, or driving less. You can also choose a limit and deductible that suit your budget and risk tolerance.

Conclusion

Medical payments coverage is an optional type of car insurance that covers the medical expenses of you and your passengers, regardless of who is at fault for the accident. It can also cover you if you are injured as a pedestrian or a cyclist by a car, or if you are riding as a passenger in another vehicle.

Medical payments coverage can provide several benefits and advantages for drivers who want to have extra protection and peace of mind in case of an accident. It can help you avoid paying out-of-pocket for costly medical bills that may exceed your health insurance limits or coverage. It can help you avoid lawsuits or disputes with other drivers or their insurers over who is responsible for paying for your medical bills. It can help you protect your assets and savings from being seized or garnished by creditors or collection agencies if you cannot pay for your medical bills. It can help you cover the medical expenses of your passengers who may not have health insurance or adequate coverage. It can help you cover the medical expenses of your family members who are injured while driving or riding in your car or another car with your permission.

To get medical payments coverage, you can add it to your existing car insurance policy or buy it as a standalone policy from most insurers. You can compare car insurance quotes from different insurers and find the best coverage and price for your needs. You can also choose a limit and deductible that suit your budget and risk tolerance.

The cost of medical payments coverage depends on several factors, such as your location, vehicle type, driving record, age, limit, and deductible. The average cost of medical payments coverage ranges from $5 to $30 per month, depending on the limit and deductible chosen. You can lower your premium by taking advantage of discounts, such as bundling your policies, maintaining a good driving record, or driving less.

By adding medical payments coverage to your car insurance policy, you can enjoy the benefits of having financial security and peace of mind in case of an accident. However, you should always weigh the pros and cons of having this coverage and compare it with other options, such as personal injury protection or health insurance.