Medical payments coverage pays your medical bills after a car accident, regardless of who caused it
Medical payments coverage (often called MedPay) is an optional add-on to your auto insurance that covers hospital visits, doctor appointments, surgery, and ambulance fees after a car crash. It pays these costs for you and your passengers, and it pays them whether you were at fault or not. The insurance company pays the medical provider or reimburses you directly, depending on how the claim is filed.
This coverage is separate from liability insurance, which pays for injuries you cause to other people. Medical payments coverage protects your own medical expenses and those of anyone riding in your vehicle. It also typically covers you if you are hit by a car while walking or riding a bike, depending on your policy.
The amount you can receive depends on the coverage limit you choose when you buy the policy. Common limits range from $1,000 to $10,000 per person, though some insurers offer higher limits. Once you reach that limit, the coverage stops paying, so understanding what you choose matters.
Key Takeaways
- Medical payments coverage pays your medical bills after any car accident, regardless of fault, and covers you and your passengers.
- You choose a coverage limit (typically $1,000 to $10,000 per person) when you purchase the policy, and that is the maximum the insurer will pay.
- This coverage works alongside health insurance and may pay bills your health plan does not cover, such as deductibles or out-of-network care.
- Medical payments coverage is optional in most states, but some lenders require it if you are financing a vehicle.
- Filing a claim usually involves sending medical bills and receipts to your insurer, and the process typically takes a few weeks.
How medical payments coverage differs from liability and health insurance
Liability insurance covers injuries and property damage you cause to other people in an accident you are found responsible for. Medical payments coverage covers your own injuries regardless of fault. If you cause an accident, your liability insurance pays the other driver's medical bills; your medical payments coverage pays yours.
Your health insurance and medical payments coverage can work together. If you have both, medical payments coverage often pays first, covering your deductible, copays, and any charges your health plan denies. This is called coordination of benefits. Some policies require your health insurance to pay first instead, so check your auto insurance documents to understand the order.
Medical payments coverage also covers situations health insurance might not. If you are injured in a rental car or a friend's vehicle, your health insurance still applies, but medical payments coverage from that vehicle's policy may also pay. This makes it useful for frequent travelers or people who borrow vehicles.
What medical expenses are and are not covered
Medical payments coverage typically pays for emergency room visits, hospital stays, surgery, X-rays, physical therapy, dental work related to the accident, prosthetics, and ambulance transport. Some policies also cover funeral expenses if someone dies from accident injuries. The coverage applies to treatment you receive within a set time after the accident, usually one to three years depending on your policy.
Medical payments coverage does not cover injuries that happened before the accident or injuries unrelated to the crash. It also does not cover treatment for conditions that existed before the accident, even if the accident made them worse. Some policies exclude certain treatments, such as chiropractic care or mental health counseling, so review your policy documents to see what your specific plan covers.
Rental car injuries are covered if you are injured while renting a vehicle, but only up to the limit on the rental company's policy or your own policy, whichever is lower. If you are injured in someone else's car, your own medical payments coverage typically does not explore; instead, the vehicle owner's policy would cover you.
Choosing a coverage limit that fits your situation
The coverage limit you select is the maximum amount the insurer will pay for your medical bills after an accident. If your medical expenses exceed that limit, you pay the difference yourself. Choosing the right limit depends on your health insurance deductible, your income, and how much out-of-pocket risk you can handle.
If you have a high health insurance deductible (for example, $2,500), a medical payments limit of at least that amount makes sense so the coverage can pay your deductible. If you have no health insurance, a higher limit protects you more. If you have dependents or frequently have passengers in your vehicle, a higher limit also covers them.
The cost difference between limits is usually small. Raising your limit from $1,000 to $5,000 might add only a few dollars to your monthly premium, while raising it to $10,000 might add a few dollars more. Because the additional cost is modest, many people choose higher limits as a safety net.
When medical payments coverage is required or optional
Medical payments coverage is optional in most states, meaning you can decline it when you buy or renew your auto insurance. However, if you are financing or leasing a vehicle, your lender may require you to carry it as a condition of the loan. Check your loan or lease agreement to see if it is mandatory.
A few states, such as New York and Florida, have different rules. New York requires a type of coverage called no-fault insurance that serves a similar purpose to medical payments coverage, though it works differently. Florida allows drivers to reject medical payments coverage in writing, but many insurers require it anyway. Contact your insurer or your state's insurance commissioner's office to understand the rules where you live.
Even if medical payments coverage is optional, it is worth considering if you do not have comprehensive health insurance or if you have a high deductible. The cost is low relative to the protection it provides.
How to file a medical payments claim
To file a claim, contact your auto insurance company and tell them you want to file for medical payments coverage. They will send you a claim form and ask for documentation of your medical expenses. Gather all medical bills, receipts, invoices, and explanation-of-benefits statements from your health insurance.
Send the completed form and documents to your insurer by mail or through their online portal, depending on how they accept claims. Keep copies of everything you send. The insurer will review the documents and verify that the expenses are related to the accident and covered under your policy.
Processing typically takes two to four weeks, though it can take longer if the insurer needs more information or if your claim is complex. Once approved, the insurer either pays the medical provider directly or sends you a check. If you have already paid the bills yourself, you will receive reimbursement.
Medical payments coverage and your other insurance
If you have multiple auto insurance policies (for example, one on your personal vehicle and one on a rental), medical payments coverage from both policies may pay for the same accident, but only up to the total of your limits. The insurers coordinate to avoid paying more than your actual expenses.
If you are injured in someone else's vehicle, your own medical payments coverage typically does not pay. Instead, the vehicle owner's policy would cover you. However, if you are injured in a rental car, your own policy may cover you depending on the terms of your rental agreement and your auto insurance policy.
Homeowners insurance and medical payments coverage are separate. Homeowners insurance covers injuries that happen on your property; auto insurance medical payments covers injuries in a vehicle. They do not overlap.
Frequently Asked Questions
Does medical payments coverage pay if I am partially at fault for the accident?
Yes. Medical payments coverage pays regardless of fault. Even if you caused the accident or share responsibility for it, your medical payments coverage will still pay your medical bills up to your coverage limit. This is one of the main advantages of having this coverage.
Will filing a medical payments claim raise my insurance rates?
No. Medical payments claims do not typically affect your rates because they do not indicate fault or risky driving. Liability claims and at-fault accidents raise rates; medical payments claims do not. However, check with your specific insurer to confirm their policy.
Can I use medical payments coverage if I do not have health insurance?
Yes. Medical payments coverage works independently of health insurance. If you do not have health insurance, medical payments coverage can pay your full medical bills up to your coverage limit. This makes it especially valuable for uninsured drivers.
What happens if my medical bills exceed my coverage limit?
You are responsible for paying any bills above your coverage limit. This is why choosing an appropriate limit matters. If your limit is too low, you may want to increase it when you renew your policy, though you cannot change it after an accident has occurred.
Does medical payments coverage explore if I am injured as a pedestrian?
It depends on your policy. Some policies cover you if you are hit by a car while walking or biking, but others do not. Review your policy documents or call your insurer to confirm whether pedestrian injuries are covered under your medical payments coverage.