In the quest for the cheapest auto insurance you can find, it may be tempting to reduce your premiums by cutting some of the optional coverage on your policy. One optional form of coverage is medical payments, which is also known as MedPay. You may think, "if it is optional, it isn't required. So, I don't need it! Goodbye, MedPay. Whatever that is!"
Slow down on that decision. Though MedPay isn't required, you may need it. To make a good decision, take a look at what MedPay covers and how it works.
MedPay is one of two forms of protection against medical bills. According to the Insurance Information Institute (III), MedPay pays for the treatment of injuries to the driver and passengers of the policyholder's car.
The second form of protection against medical bills is called Personal Injury Protection (PIP), and can actually be broader than MedPay. According to the III, "PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs."
MedPay and PIP coverage pays regardless of fault; there is no need to prove fault or negligence. This means that payments can be made to doctors, other health care providers, pharmacies, etc. before fault is determined and your claim is settled.
Even if you have health insurance or major medical insurance, you may still want to carry MedPay. While medical insurance may pay for your injuries, you will still be responsible for your co-payment and deductible. Your health insurance plan may not cover things like chiropractic care, and your medical plan will not cover your lost wages, child care or the replacement of other needed services while you recover.
Your state may require one or the other, or both, be available on all auto insurance policies. Some coverage may be mandatory with additional protection available. Review your medical insurance coverage and decide if additional MedPay or PIP would be beneficial to you. In most cases, additional protection is inexpensive.
MedPay and PIP offer a lot of value for the money. Medical claims can be very expensive, and you can't really tell how much you are risking for cheap auto insurance until you are caught paying for medical bills that were the result of a car accident.
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