How Does Medical Payments Coverage Work?

When you get into an accident, you want to know that you’ll be covered in case you or your passengers are injured. This is where your medical payments coverage comes in. Medical payments coverage typically comes as part of a full coverage auto insurance policy and helps cover medical bills you and your passengers may suffer. a laptop computer sitting on top of a table

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Medical Payments Coverage

Medical payments coverage is known by many names, such as personal injury protection, PIP and no-fault coverage. No matter what its name, this coverage provides compensation for medical expenses incurred by the driver and their passengers after an accident.

Unlike most coverages, however, this coverage is no-fault—meaning that no matter who caused the accident, the driver and their passengers will be covered. This is crucial for several reasons. If you cause an accident that results in injuries to another party, your liability insurance will cover the other driver’s damages, but typically won’t cover you or anyone in the vehicle with you. Medical bills are expensive, especially when it comes to an emergency. Having a good medical expense policy in place can help prevent you and your family paying for these bills out of pocket. It can also prevent lawsuits from your passengers for their injuries.

It covers bills such as:

Ambulances
EMTs
Hospital visits

Hospital stays
Funeral services
Doctor visits

Exceptions to Medical Payments Coverage

Keep in mind the limits on your auto insurance coverage. Medical payments won’t cover everything and you could have limits on how much compensation you can receive depending on your policy.

Compensation for this coverage may also be limited or denied in incidents where:

The driver is under the influence of drugs or alcohol
The driver is committing illegal activities
The injuries are intentionally inflicted by either party

It can include damage done by motorcycles or bikes crashing into the commercial vehicle, however.

Deciding Medical Payments Coverage Limits

Coverage limit needs will vary per client. Medical payments coverage is not legally required by the states, but it’s important for clients to carry the right amount of this coverage. Depending on what limits your agency offers, a client could purchase $1,000, $2,000, $5,000, $10,000 or $25,000 in medical payments coverage or any variable in between.

You may adjust your auto insurance policy based on your needs. If you have a poor driving record, don’t have health insurance or live near a major highway, you may want higher limits of medical payments coverage.

Cost of Medical Payments Coverage

Adding medical payments coverage to an auto insurance policy can vary between $2 and $37 a month. This cost varies depending on a variety of factors, including your:

Age
Gender
Location
Driving record
Credit score

Coverage limits
Deductible

All of these factors also influence your overall auto insurance rates, so be sure to shop around and compare quotes in order to find the best coverage possible for your vehicle. Drivers with poor driving records or low credit scores may pay higher premiums for auto insurance due to the risk taken on by the insurer.

Medical Payments Coverage vs. Personal Injury Protection

There are two main options when it comes to receiving compensation for injuries in a car accident: medical payments coverage or personal injury protection. These terms are often used interchangeably, but there are key differences. For one, different states offer either one or the other. For example, personal injury protection is offered in a few select states and not offered in some.

While these operate similarly, the key difference is that personal injury protection can extend coverage a little further when it comes to compensation. Namely, a personal injury protection policy may offer compensation for wage loss in case you or a passenger are unable to work for a certain period of time because of an accident whereas most medical payments coverage policies may not.

Every policy is different so be sure to speak with your insurance agent about the coverage you need.

Does Full Coverage Car Insurance Include Medical Payments Coverage?

A typical full coverage auto insurance policy includes medical payments coverage or personal injury protection, although limits and deductibles vary. Also be sure to ask your insurance agent about adding coverages to your full coverage policy such as:

Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and other incidents not involving collision.

Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
Liability: Liability insurance covers bodily injury and property damage you may cause someone else while operating the insured vehicle.
Uninsured/Underinsured Motorist: This insurance covers damages involved in an accident with another driver who is not carrying insurance.
Roadside Assistance: Roadside assistance covers expenses related to trip interruptions such as needing to be towed.

How Does Medical Payments Coverage Work?

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