Medical Payments Coverage on Car Insurance: What Is It?

Medical payments coverage in a car insurance policy covers medical treatment or funeral expenses for you and your passengers after a car accident. If you sustain an injury during a crash and require medical treatment, MedPay will cover your medical bills up to your coverage limits. Unlike typical health insurance, medical payments coverage is not subject to deductibles or copays, making it beneficial to have in addition to your health insurance policy.^[1]

What is medical payments coverage?

An optional form of car insurance coverage in most states, medical payments coverage pays for medical bills — including emergency room visits, ambulance fees, doctor’s office visits, imaging, and chiropractic services — for the policyholder and their passengers. MedPay also covers funeral costs. Unless your MedPay coverage qualifies as secondary insurance, you can decide if it makes more sense for your MedPay or health insurance coverage to apply after an accident. MedPay coverage can also be used to cover the costs of health insurance copays or deductibles if you do need to use your health insurance.

It applies regardless of fault in an accident and covers the policyholder if they sustain injuries as a pedestrian or while riding in a friend’s car.

What MedPay covers

MedPay covers medical bills for you and your passengers without any required deductible or copayment. You can expect medical payments coverage to pay for the following common expenses up to the limits of your policy:

• Doctor’s office visits

• Emergency room stays

• Surgery

• X-ray, CT scan, and other imaging

• Prostheses

• Dental procedures

• Chiropractic

• Ambulance and EMT fees

• Nursing services

• Funeral expenses

What MedPay doesn’t cover

Medical payments coverage does not help with any of the following expenses:

• Injuries to another driver or their passengers in an accident you cause

• Medical bills unrelated to an auto accident

• Lost wages from time off work

• Replacement services, such as child care

Learn More: What to Do After a Car Accident (7 Steps to Take)

Medical payments vs. personal injury protection

Personal injury protection, or PIP, coverage provides more robust coverage than medical payments insurance, though the two coverage types have similarities. Beyond paying for the medical bills incurred by you and your passengers after an accident, PIP also covers a portion of your lost wages and can help pay for essential services, like child care and housekeeping, that your injuries prevent you from adequately completing.

Many states require PIP coverage,^[2] while MedPay coverage is only mandatory in Maine and Pennsylvania.^[3] Additionally, while New Hampshire doesn’t require you to buy personal car insurance, if you choose to purchase it in New Hampshire, the state requires you to also purchase MedPay coverage.^[4]

The following states require drivers to purchase PIP coverage:

• Delaware

• Florida

• Hawaii

• Kansas

• Kentucky

• Massachusetts

• Michigan

• Minnesota

• New Jersey

• New York

• North Dakota

• Oregon

• Utah

In some other states, insurance companies may be required to offer policyholders the option to purchase MedPay or PIP coverage, but policyholders can reject the coverage.

Read More: Personal Injury Protection Coverage (A Guide)

Do you need to add MedPay to your car insurance?

If you live in Maine, you’ll need at least $1,000 in medical payments coverage. And in Pennsylvania, you’ll need at least $5,000 in MedPay coverage. If you choose to purchase car insurance as proof of financial responsibility in New Hampshire, you must add at least $1,000 in MedPay coverage to your policy. And in Wisconsin, insurers are required to offer MedPay coverage, but you can decide whether you want the coverage.^[5]

In all other states, MedPay is totally optional. If you live in a state that requires PIP or you choose to add it as an optional coverage, you generally won’t need the additional MedPay coverage.

How much medical payment coverage do you need?

You should ensure you meet state requirements for MedPay coverage if your state requires it. If MedPay is an optional coverage, you should purchase an amount that will cover the health insurance deductibles and copayments you’ll be responsible for with your health insurance plan.

For example, let’s say you have a $1,000 deductible and are required to pay 20% co-insurance for emergency care. You’ll want to purchase well above $1,000 in MedPay coverage to help with your costs after your deductible.

For 2023, Marketplace health plans through the government have an annual out-of-pocket maximum of $9,100 for covered services.^[6] For most people covered by a major medical plan, $5,000 in medical payments coverage is sufficient, but you may opt for higher limits for more coverage.

How to get MedPay coverage

While you can add MedPay to your existing car insurance policy by contacting your insurance company, some providers charge more for medical payments coverage than others. Any time you’re considering a change to your car insurance policy, compare quotes to ensure you get the lowest premium for the coverage you need. Luckily, it only takes a few minutes to check applicable quotes from several insurance companies.

Check Out: What’s a High-Deductible Health Plan and How Does It Work?

Medical payments coverage FAQs