Bodily injury (BI) liability coverage normally pays for injuries to others when you are legally liable for an accident involving your automobile. Your insurance company will pay for injuries up to the limits of your policy and provide legal representation if you get sued. In some no-fault states bodily injury insurance is limited paying for serious injury or death since a person's own personal injury protection (PIP) would be used for less serious injuries.

Medical payments (MEDPM) is an optional coverage that you would purchase to cover your own medical expenses arising from a car accident. This coverage pays for medical expenses for bodily injury up to the limit of your policy.

MEDPM covers your medical expenses, plus those of your family members or passengers, regardless of fault. It applies whether you are in your automobile or someone else’s, or if you are hit by an automobile while walking or bicycling.

In Florida where basic PIP covers only 80 percent of medical expenses, Medical payments coverage could cover the remaining 20 percent, and possibly the PIP deductible, depending on the policy provisions. Medical payments will also cover the amount in excess of the PIP limit, up to the limit of the medical payments benefits. Florida PIP law changes January 1, 2008 and PIP will still have 80% medical bill coverage or the 20% co-pay. New restrictions on the types of clinics that can bill PIP. A new fee schedule capping what most health care providers can charge to 200% of the Medicare reimbursement rates. Some of these changes were added to address fraud in Florida PIP.

So the difference is that Bodily Injury insurance covers others that you are responsible for their injuries while Medical Payment covers your own injuries that you sustained in a car accident.