Medical Payments- do you really need it?

July 17, 2019

Making Sense of Medical Payments…

Medical Payments on your auto policy can offer you extra peace of mind, covering some of the costs of medical treatment related to an accident.

The coverage does have a few ins and outs, however, and you may feel confused about how it works and whether they need it. Here are a few points to help you decide.

What is medical payments coverage?
Medical payments (sometimes called “medpay”) covers hospital bills and funeral expenses, up to your chosen limit, if you’re in an accident. Your insurance company pays regardless of who is determined to be at fault (responsible). It even covers your passengers at the time of the accident.

Medical payments is similar to Personal Injury Protection (PIP) coverage, which is offered in about 15 states. However, unlike PIP, medical payments will not reimburse for lost wages.

Do I need medical payments coverage if I have health insurance?
Medical payments limits (the “limit” is the maximum amount of money you can expect to receive for a claim) vary by state. Typically, however, it’s $10,000 or less. So, the coverage is best used as a supplement for your primary health or life insurance. Medical Payments could come in handy for any deductibles, copayments, or out of pocket expenses you incur related to medical treatment following an accident. If you carry medical payments, it pays first, then your health insurance kicks in.

Interestingly, your medical payments coverage could apply if you’re struck by a car while walking or bicycling.

What if I’m still unsure?
If you still have questions, or are unsure whether medical payments coverage is right for you, contact us at King Insurance & Financial Services.  We can help you choose the coverage levels you need to protect yourself, your family, and your car.