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Medical coverages


Are MedPay and PIP mandatory medical coverages?
What are the recommended limits for medical coverages?
What if I don’t buy MedPay and/or PIP coverage?
What is the difference between PIP (personal injury protection) and medical payments?
How do these medical coverages differ?

What do MedPay and PIP cover?

Medical payments (MedPay) and personal injury protection (PIP) are two medical coverages that pay medical expenses resulting from injuries sustained in an auto accident.

Both MedPay and PIP normally cover you, your passengers and other authorized drivers of your car who are injured while in your insured vehicle.  Both coverages typically also cover you and your family members if you are injured while riding in someone else's car or if struck by another vehicle while a pedestrian.

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MedPay and PIP are similar, but PIP is typically more comprehensive and pays for items such as lost wages that MedPay will not.  Both coverages usually come with a benefit for funeral expenses.

Medical payments strictly pays for reasonable medical expenses, such as hospital, dental, nursing and X-ray bills incurred within a specified period of time after your accident (usually the first three years).

PIP typically covers reasonable medical expenses, loss of essential services and lost wages. The exact benefits offered by PIP coverage differ greatly by state, and a deductible and/or co-payment may be due before your benefits start up.

Are MedPay and PIP mandatory medical coverages?

You must buy personal injury protection in these states: Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah. Most, but not all, are no-fault states.

Only one state, Maine, requires drivers to purchase medical payments coverage. New Hampshire does not have a compulsory car insurance law, but if you buy a policy, as most motorists there do, it must include medical payments coverage. Both states' minimum MedPay limit is $2,000.

Most other states offer PIP and/or medical payment as optional coverages.

If you're looking for details on your state car insurance laws or want to find average car insurance rates for your state or city, visit our state car insurance rates page.

What are the recommended limits for medical coverages?

Medical payments and personal injury protection available limits vary greatly from state to state.  You need to buy at least the minimum amounts for your state.

If these coverages are optional, experts recommend at least $5,000 for medical payments and $10,000 for PIP.

Consider buying enough MedPay and/or PIP to cover your health insurance deductible. If you don't have health insurance, or a policy that doesn't cover auto accident injuries,consider a higher amount.

In many states, you can carry both MedPay and PIP on your policy if you so choose. Depending upon state laws and policy terms, this can be beneficial if you are able to use your MedPay coverage to pay for your PIP co-payment or deductible. Or your medical payments may kick in after your PIP coverage is exhausted, which is still helpful.

What if I don’t buy MedPay and/or PIP coverage?

If medical payments coverage and/or PIP is optional in your state and you choose to go without, you may end up paying out-of-pocket for your medical bills when you are at-fault in an accident, or the at-fault party cannot cover your injuries.

What is the difference between PIP (personal injury protection) and medical payments?

It's confusing to many people shopping for auto insurance when they're offered both personal injury protection (PIP) and medical payments (MedPay) since both deal with medical expenses resulting from auto accidents, and without regard to fault.    

Depending upon where you live, PIP or MedPay may be required. Typically, PIP is what you must carry if you are living in a no-fault state, and MedPay is optional in most states.

In general, the basic difference between these two coverages is that PIP usually comes with a deductible and has benefits that are broader than just covering medical bills, while MedPay doesn’t usually have a deductible (and actually might cover your PIP or health insurance deductible) and only covers medical expenses related to the auto accident.

Both PIP and MedPay:

  • Cover certain medical expenses related to injuries up to the amount you've chosen to carry. Based on where you live and your insurer's options, the coverage that you can purchase may range from $1,000 to $25,000 or more. 
  • Normally covers you, family members and other passengers who were injured in an accident while riding or driving within your insured vehicle. Plus, you and covered family members are also usually covered if injured while riding in someone else's car.

How do these medical coverages differ?

PIP normally covers only medical and hospital expenses that have been deemed reasonable and necessary and you may have a short period of time in which to seek treatment and make your PIP claim. Whether a certain medical expense will be covered will be determined by state laws surrounding PIP coverage and the specific terms of your policy.

PIP gives broader coverage than MedPay. Personal injury protection typically comes with benefits that include:

  • Necessary and reasonable expenses for: medical, hospital, surgical, nursing, dental, ambulance and X-ray services. Necessary medications, medical supplies and prosthetic devices may also be covered.
  • Rehabilitation
  • Loss of income
  • Replacement services / Disability services (for example, childcare or housework if parent is disabled due to accident related injuries)
  • Funeral expenses / Death benefit

Medical payments coverage only covers medical expenses. It doesn’t offer coverage for lost wages or loss of essential services. Medical payments benefits usually include:

  • Doctor or hospital visits  or stays (including required surgeries)
  • X-rays
  • EMT/Ambulance expenses
  • Professional nursing expenses
  • Prostheses expenses
  • Dental expenses
  • Funeral expenses

When you have both PIP and MedPay as part of your auto insurance policy, MedPay is usually secondary to your PIP coverages. 

If your state doesn’t require either of these medical coverages and you don’t have health insurance, then consider adding PIP and/or MedPay when shopping for auto insurance.  Reasonably priced coverage for accident-related medical bills, which can get quite expensive quite quickly, is much better than no coverage at all.

If you already have health insurance, then see if it will cover injuries resulting from auto accidents. If not, then MedPay or PIP may be needed.  If your health insurance does cover accident-related injuries, then check costs to see if it’s worth carrying MedPay to cover any health insurance deductible you may have to pay for claims after an auto accident.

If your state requires PIP, then find out if you have the option to choose a higher deductible to lower your policy premiums. 

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