Whether you’re shopping for your first insurance policy or just looking for the best rates, you’ll notice that there are quite a few “additions” you can tack onto your insurance beyond just the minimums. One of these is available in several states, and it’s called medical payments coverage.
In this guide, we’ll discover all you need to know about this type of insurance, including medical payments coverage limits, and more.
What is Medical Payments Coverage?
Most states in the country are known as at-fault states. That means that the driver who caused an accident is responsible for paying the property damage and medical expenses of the other party. Most states require that you carry some sort of liability insurance to cover you for exactly this.
When you consider this, you may ask yourself who will pay your medical expenses if you’re injured in a wreck? You’d be right to ask; the fact is that you’d pay out of pocket for much of that, unless you have fantastic health insurance coverage.
That’s where medical payments coverage comes in. This optional insurance will pay your medical and certain other expenses that you may incur if you’re in an accident. As you know, hospital bills and medical attention can be very expensive; medical payments coverage may be a literal lifesaver if you’re involved in an accident.
What Does Medical Payments Coverage Cover?
The expenses that your medical payments insurance will cover may vary depending upon your insurance company. However, in most cases, even if you have health insurance, your coverage can help pay for the following medical costs:
- Your deductibles and co-pays not covered by your primary health insurance
- X-rays and other diagnostic tests
- The cost of your ambulance or flight
- Some in-home care and professional nursing services
- Prosthetic limbs
- Emergency dental surgery
- Some funeral expenses
Before you decide to purchase medical payments coverage, schedule a meeting with your insurance agent. Review your existing health insurance and its limits. This will help you determine whether medical payments insurance is right for you.
How Much Does Medical Payments Coverage Cost?
Again, your premium for medical payments insurance will depend upon you and your insurance company. Factors that may impact the price of your insurance include:
- The amount of insurance you’re seeking
- Your existing health, umbrella, and personal injury protection insurance
- Your age
- Your driving record
- Your zip code
Once those conditions unique to you are considered, you can expect to pay anywhere between $2 per month to $40 per month. This cost is added into your monthly, quarterly or annual premium; it is not a separate service.
The amount of medical payments coverage (medpay) you buy is up to you. Again, talk with your insurer about your existing policies. You can choose coverage options ranging from as little as $500 per accident to $100,000 per accident.
Do I Need Medical Payments Coverage?
In some states, medical payments coverage is mandatory. Specifically, in Pennsylvania, New Hampshire, and Maine you’ll be required to carry a state minimum requirement of medpay coverage.
If not required in your state, only you can decide if medpay insurance is right for you. We urge you to take a close look at your existing health insurance. You may be surprised to find that many insurers do not cover expenses incurred due to an automobile accident!
Obviously, if this is the case with you and your insurance. You might consider medical payments coverage a little bit more seriously. However, don’t forget to take into account the insurance you have through personal injury protection coverage and any umbrella policy you might own.
It’s been noted that there is one state where you definitely won’t need medical payments coverage: Michigan. Michigan has the highest average insurance premiums in the country, but it’s also got the best protections. A no-fault state, there’s no limit to the dollar amount of medical expenses you can claim. Outside of Michigan, medpay is worth considering.
Conclusion: Medical Expenses Coverage
Shopping for auto insurance can be confusing if you’re not familiar with the terms and coverages. Medical payments coverage is an option you can add to your basic of other auto insurance coverage that will ensure you’re financially protected should you be injured in an auto accident, particularly if you were at fault.