Do you need medical payment coverage on auto insurance?

Three million people are injured in six million car accidents each year. Due to this, 49 of the 50 states mandate that all drivers carry auto insurance with at least liability coverage.

When you are in an accident, it can be frightening, and paying for medical care may be the last thing on your mind. But who covers medical expenses after an auto accident? Let’s look more closely.

Do I need medical expense coverage on my auto insurance?

Yes, your car insurance will help cover your medical bills up to your policy’s maximum, but the extent depends on the type and amount of coverage you have. 

Liability-only and full coverage are the two options for car insurance. Each has various coverage requirements, including varying insurance minimums and certain medical coverages. Find out if liability covers passengers injured in a car accident.

Liability Coverage and Medical Costs

Property damage and physical injuries are frequently covered separately under liability auto insurance. Damages you cause to another person’s vehicle or tangible property are covered under the property damage section. The part relating to bodily injury is what matters to us right now.

When you cause an accident, your bodily injury liability insurance can cover medical bills for accident-related injuries, lost wages from the accident, legal charges, and, in some situations, burial costs for the other driver and occupants of the other car.

On the other hand, if the other driver were found to be at fault in an accident and you were hurt, their bodily injury liability insurance would pay your medical expenses up to the limits of their policy.

If you merely have liability insurance, on the other hand, it won’t cover any vehicle damage or medical costs for you and your passengers. You would require full coverage car insurance for that.

Full Coverage and Medical Expenses

All liability coverage is included in full coverage auto insurance, but it also provides coverage for your car and medical expenses if you cause an accident.

You are liable for your own automobile and injuries if you cause an accident and just have liability insurance. Additionally, full coverage may come with other benefits, like roadside assistance, that boost your policy’s security and peace of mind.

Full coverage is more expensive because it protects you as well as the other driver in a collision. However, knowing you’re protected to the full extent of your insurance can be valuable. Additionally, the cost might be pretty affordable depending on your car and driving record.

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PIP Insurance Coverage: What is it?

If no one is at fault or you reside in a no-fault state, personal injury protection (PIP) is the portion of your insurance that covers your injuries and those of your passengers in a vehicle accident. 

PIP pays for direct accident-related costs like medical bills, lost earnings, and death benefits. It also protects you if you are a passenger in a collision.

Every insurance policy we’ve discussed up to this point has been for “at fault” or accident-caused situations. What happens if nobody is to blame or if you reside in a “no-fault” state? PIP steps in at this point. 

How does PIP insurance work?

It doesn’t matter who causes an accident in a no-fault insurance state. In a no-fault state, it is hoped that each driver will have their own insurance, reducing the number of claims and lawsuits filed against other drivers and their insurance providers. Learn more about how no-fault auto insurance works.

PIP is essential in no-fault states because you cannot depend on the other driver to pay with their liability coverage.

If you have PIP, you can file an auto insurance claim with your own insurance company following an accident to get paid for your injuries and medical costs. Even if the other driver doesn’t have insurance, PIP policyholders can still receive benefits.

Is PIP insurance required?

Sixteen states, including all twelve no-fault states, require PIP as a component of motor insurance:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Utah

You need PIP insurance if you reside in one of the aforementioned states.

If it’s not required in your state, having PIP can be beneficial, even with health insurance. For instance, it can cover any remaining costs before your health insurance kicks in when you’re hurt in an accident, and the other driver’s liability insurance is unable to fully cover your medical bills.

What exactly does medical payments insurance (MedPay) cover?

Do you need medical payments coverage? MedPay is an optional plan that gives you additional money for medical expenditures for you and your passengers in an accident.

You can use MedPay to cover a variety of expenses:

• Health insurance costs, such as deductibles and copays
• Ambulance rides and hospital stays
• X-rays, surgery, and artificial limbs or components
• Medical facility fees
• Specialized nursing and rehabilitation care

MedPay typically only provides a limited amount of coverage — between $2,000 and $5,000. Sometimes this is sufficient to pay for deductibles and copays that you might otherwise have to pay out-of-pocket. Still, you may require higher limits to cover expenses your health insurance plan expressly excludes.

What distinguishes personal injury protection from medical payments coverage?

MedPay, like PIP, assists in covering your or your passengers’ medical costs following an automobile collision, whoever was at fault.

However, there are three fundamental distinctions between PIP and MedPay:

• PIP is required in no-fault states, vs. MedPay is always optional coverage
• Tort (at-fault) states offer optional MedPay coverage vs. PIP is not always available in tort states 
• PIP offers additional financial coverage for lost wages, essential services, and funeral costs vs. MedPay strictly covers medical bills

Depending on where you live, you might be required to carry PIP over MedPay. Check your state insurance laws to find out which kind of insurance you need to cover medical expenses in an accident.

MedicalPay vs. Bodily Injury Liability vs. PIP

You can receive compensation for injuries brought on by an automobile collision in three distinct ways: 

Personal Injury Protection Coverage

Depending on your jurisdiction’s insurance laws and regulations, PIP may be necessary, optional, or unavailable. Depending on where you reside, it may cost as little as $3,000 or as much as $250,000. PIP can also be used to cover extenuating expenses that are related to the accident, such as missed wages resulting from your injuries.

MedPay Coverage

No matter who was at blame for the collision, MedPay is an optional coverage that you can use to cover your and your passengers’ medical costs. This could be useful if you caused an accident, in which case liability coverage won’t cover the cost of your injuries.

Bodily Injury Liability Coverage 

Liability insurance does not cover your injuries. Bodily injury coverage only covers the other driver and their passengers, which is the main distinction between it and the other coverages mentioned above.

By covering the medical costs, pain and suffering, funeral fees, and other costs suffered by the driver and passengers of the other vehicle, bodily injury liability coverage safeguards your finances in the event that you are found to be at fault in an accident. 

It’s crucial to keep in mind that you will still be liable for any damages you cause in an accident if you don’t have bodily injury liability insurance or carry insufficient limits.

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What happens if auto insurance does not cover medical expenses?

There are rare instances in which an insurance company will reject a claim for injuries. For instance, if your accident occurred while you were driving illegally or against the law, your insurance provider can decide to reject your claim because you broke the terms of your contract.

What do you do if the auto insurance company denies your claim? Follow these steps:

• Utilize your extra insurance. If someone hits you and their insurance company rejects your claim, PIP or MedPay can assist you in covering your medical expenses. 
• Use your health insurance. If you are not eligible for any auto insurance coverage, file a claim with your health insurance. Car accidents can take months or even years to resolve, and you can submit claims to your health insurance in the meantime. Insurance companies will determine who needs to be reimbursed once the dust has cleared. 
• Go to court. You can sue the insurance company or the other driver if you think it wrongfully rejected your claim or they were driving illegally. However, this isn’t a guarantee, and it can take years. Learn how to appeal an auto insurance claim. 
• Negotiate your expenses. If your auto insurance company has rejected your claim and you don’t have health insurance, you might be able to negotiate your bills with the hospital or come up with a payment plan.

We recommend working with an attorney if you have a particularly stubborn insurance company or devastating accident. They will be well-versed in your state’s insurance laws and can give you proper guidance on what to do next if your insurance company denies your medical claim. 

The Bottom Line on Auto Insurance and Medical Expenses

After a car accident, personal injury protection assists with the cost of a funeral, lost wages, and medical care. This type of extra auto insurance normally provides coverage for the policyholder, family members operating the vehicle, and passengers. 

No matter who is at fault, both PIP and MedPay coverage will cover medical expenses in an accident. Your medical payments coverage also remains in effect if you’re walking, riding in a friend’s automobile, or taking public transportation. 

However, MedPay and PIP aren’t applicable in all circumstances. For instance, your car’s accessories, such as trailers or other equipment, are not protected. You will need collision and comprehensive coverage to protect your vehicle. 

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