Medical Payments (MedPay) is similar to PIP, but much less comprehensive.
It’s optional in all but two states. MedPay covers medical expenses for the insured, other drivers listed on the insurance policy, members of the insured’s household and passengers.
Depending on your state law, coverage and insurance company, MedPay can supplement your health insurance coverage or function as primary medical coverage after an accident. If it’s considered supplemental, your health insurance would be used first to cover your injuries, then the MedPay would kick in for deductibles and co-pays. If it’s primary, MedPay is tapped first to cover the immediate medical costs, and then your health coverage takes care of the excess or ongoing expenses.
MedPay is designed to complement standard liability coverage. Some drivers use it to “beef up” their PIP policies. While its coverage is limited, MedPay has a couple of advantages that make it worth considering:
It pays medical costs quickly, regardless of fault. In a tort state, you’re responsible for your medical costs if you’re at fault. If the other driver is at fault, you may have to fight to get your losses covered. In court, this can take months or even years.
MedPay has no deductible or co-pay, unlike most health insurance plans.
You’re covered if injured as someone else’s passenger, if you’re taking public transportation or if you’re injured by another driver while walking or cycling.