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There are many types of car insurance that provide coverage for various expenses. Medical Payments (MedPay) car insurance is a type that focuses specifically on medical costs.
After an accident, paying for your injuries can be stressful, especially if you don't have health insurance or have gaps in your coverage. Medical Payments (MedPay) can help make sure that you are covered.
What You Should Know
- MedPay covers medical costs for policyholders and passengers after accidents
- Insurance providers offer MedPay coverage for $6-15 monthly
- MedPay is required in Maine, Pennsylvania, and New Hampshire
Enter your ZIP code into our free quote comparison tool above to find a Medical Payments (MedPay) car insurance company near you.
Understanding Medical Payments (MedPay) Coverage
If you’re wondering, “what does medical payment insurance cover”, Medical payments insurance coverage or (MedPay) is a type of coverage that will pay for medical expenses for the policyholder, their passengers, and drivers listed on the policy after an accident, regardless of fault.
MedPay follows you regardless of which vehicle you are driving, riding in, or if you're not even in a car. So, for example, your policy may offer coverage if you are taking public transportation or are a pedestrian. This broad coverage makes MedPay a valuable and cost-effective addition to your car insurance policy.
Medical Payments Insurance Policy Rates From Top Insurers
You may think that it’s an additional expense, but MedPay car insurance rates can be extremely affordable. You may be able to find coverage for as little as $10 per month added to your standard car insurance policy. Many major car insurance companies offer MedPay coverage, making it accessible as long as it is available in your state.
While most insurers provide similar coverage, some stand out for better rates, customer service, or additional benefits. The table below highlights the varying monthly costs of MedPay coverage among major insurers:
| Insurance Company | MedPay Rates |
|---|---|
 |
$10 |
 |
$8 |
 |
$12 |
 |
$7 |
 |
$15 |
 |
$11 |
 |
$13 |
 |
$9 |
 |
$14 |
 |
$6 |
Geico is a popular choice for lower car insurance rates, while USAA car insurance offers affordable MedPay coverage for military members, veterans, and their families. However, switching insurance companies solely to save a few dollars on MedPay is not always recommended.
Instead, check if your current insurer offers MedPay and add it to your existing policy if needed. These differences highlight the importance of comparing insurers to find the most affordable MedPay coverage that suits your budget. However, your actual rates will vary based on your state, driving record, demographics, and other factors.
Read More: What is a driving record and what does it track?
How MedPay Works
Medical Payments (MedPay) is meant to provide coverage quickly since you don't have to determine fault to have a MedPay claim approved. It also fills the gaps between car insurance and health insurance to make sure you're covered.
MedPay follows the policyholder instead of their vehicle. Therefore, if they are a passenger in a friend's vehicle, they will still be covered if an accident occurs.
In some cases, MedPay policyholders can also be covered if they are struck by a vehicle as a pedestrian, including hit-and-run. When filing a MedPay claim, how your expenses are covered will depend on your insurer. You may need to pay some costs out of pocket and then be reimbursed, but some charges may be paid for directly by the insurance company.
Read More: Steps To Handling A Hit And Run Insurance Claim
What Medical Payments (MedPay) Covers
The "medical payments insurance" definition may vary depending on your insurance company and the state that you live in. In general, Medical Payments (MedPay) car insurance will cover:
- Doctor's and hospital visits immediately following an accident or as a follow-up for injuries caused by the accident
- Health insurance deductibles and co-pays
- Ambulance,emergency fees, surgeries, x-rays, prosthetics, and other medical services and equipment
- Professional nursing services
- Funeral expenses
However, there are a few things that MedPay won't cover, such as lost wages or home services (childcare or cleaning services) during rehabilitation. It also doesn't provide coverage for people in other vehicles.
See the table below that compares what does Medpay cover while other type of coverage doesn’t, highlighting what each policy covers and its limitations.
| Coverage Type | Policyholder | Passengers | Other Drivers | Lost Wages | Pays Regardless | State Required |
|---|---|---|---|---|---|---|
| Medical Payments (MedPay) | ✅ | ✅ | ❌ | ❌ | ✅ | ❌ |
| Personal Injury Protection (PIP) | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Bodily Injury Liability | ✅ | ❌ | ✅ | ❌ | ❌ | ✅ |
| Health Insurance | ❌ | ❌ | ❌ | ✅ | ❌ | ❌ |
If the policyholder causes an accident and another driver is injured, the policyholder's liability insurance should provide coverage for them rather than the MedPay policy.
Read More: How much bodily injury liability coverage do I need?
MedPay Coverage: Cost Savings & Benefits for Car Insurance Customers
When considering whether to purchase MedPay, it's important to understand what are medical payments on car insurance: it's a supplemental coverage that pays for medical expenses for you and your passengers after an accident, regardless of fault.
The medical payments definition includes doctor visits, hospital stays, ambulance fees, and funeral expenses, making it valuable despite being mandatory in only a few states like Maine and Pennsylvania.
Top ways customers have saved money on car insurance rates include comparing providers (with USAA and Geico offering rates as low as $6-7 monthly) and adding MedPay to existing policies rather than switching insurers.
While medical payments (MedPay) insurance benefits those with high health deductibles, frequent rideshare users, or those needing immediate coverage. However, it may be unnecessary if you have comprehensive health insurance or PIP, as it excludes lost wages and recovery services.
If you need help getting Medical Payments (MedPay) car insurance quotes, enter your ZIP code into our free quote comparison tool below.
Frequently Asked Questions
What are medical payments for auto insurance?
The medical payments insurance definition refers to coverage that pays for medical expenses for you, your passengers, and listed drivers after an accident, regardless of fault. It covers hospital visits, ambulance fees, surgeries, and even funeral expenses, following you whether you're driving, using public transit, or walking.
Read More: Life Insurance Companies That Will Cover Clients That Had Open Heart Surgery
How MedPay work in Louisiana?
While Louisiana doesn't require MedPay, it functions like other states where it covers medical expenses regardless of fault. Claims can be filed immediately after an accident, with costs either paid directly by the insurer or reimbursed to the policyholder.
Does using MedPay increase your premium?
Generally, using MedPay doesn't increase your premium since it's a no-fault coverage. However, if accidents become frequent, insurers might review your overall policy.
You can also enter your ZIP code into our free comparison tool to start comparing rates now.
What are medical payments in home insurance?
Medical payments coverage (MedPay) in homeowners insurance helps pay medical expenses if someone is injured on your property. Unlike auto MedPay, it's specifically for guests and doesn't cover the homeowner or residents.
Do you have to pay back MedPay?
No, MedPay benefits typically don't need to be repaid. It's considered a primary coverage that you're entitled to use when needed.
What happens if medical bills exceed policy limits?
When bills exceed MedPay limits, additional costs may be covered by your health insurance, PIP coverage, or you may need to pay out-of-pocket. You might also claim against the at-fault driver's liability insurance.
Does MedPay have a deductible?
No, MedPay typically doesn't have a insurance deductible. Coverage begins immediately after an accident without requiring any upfront payment from you.
Why are my medical bills so high, even with insurance?
Medical bills can remain high due to various factors like high deductibles, co-pays, out-of-network charges, and treatments not covered by your insurance policy.
What is the average medical insurance payment?
Based on the article data, MedPay coverage costs range from $6-15 monthly, with USAA offering the lowest rates and Liberty Mutual the highest among major insurers.
Do medical payment plans affect your credit?
Medical payment plans themselves don't typically affect your credit. However, if payments are missed and the account goes to collections, it can impact your credit score.
You can find the cheapest insurance coverage tailored to your needs by entering your ZIP code.
Does full coverage include medical payments?
Full coverage doesn't automatically include MedPay. It's typically an optional add-on that must be purchased separately, except in states where it's mandatory like Maine and Pennsylvania.