What Is Medical Payments Coverage?
Medical payments coverage is an auto insurance policy that covers expenses incurred from auto accidents. It is a “no-fault” type of insurance. That means it is accessible regardless of who caused the accident.
Medical payment coverage, otherwise known as MedPay, is an insurance policy that covers you, passengers in your vehicle, and injured pedestrians if you are involved in an accident. It is a health insurance supplement that applies no matter whose fault the accident is.
MedPay covers different kinds of expenses that relate to injuries sustained from an automobile accident. Some of the expenses covered include:
- Ambulance and Emergency Medical Technician fees
- Surgery and X-rays
- Prosthetic limbs
- Dental procedures
- Hospital visits and stays
- Nursing services and care
- Doctor visits
Medical payment coverage follows the person in whose name the insurance policy is held. For instance, if a person is driving a friend’s car or using public transportation, the insurance still covers them if they are involved in an accident. It also applies to pedestrians. For instance, if the policyholder is hit while walking, the insurance covers them. Also, if the policyholder hits pedestrians, the coverage extends to the injured pedestrians.
Typically, if there is an accident, MedPay will either pay the bills directly or send the payment to the policyholder. The MedPay company has a right to verify whether a policyholder was injured in a motor accident. Usually, this is done through a police traffic collision report, a statement from the policyholder, a report from a doctor, or medical records.
Medical Payments Coverage Example
Joe, while driving to work, lost control of the wheels and drove into a ditch. Thankfully, he survives, sustaining a knee injury. Joe is taken to the hospital for treatment, and after the treatment and medication, he is charged a bill of $12,000. Joe has Personal injury protection (PIP) that covers a maximum of $10,000. If Joe has MedPay, the remaining $2000 would be covered by the insurance company. If Joe doesn’t have MedPay, he will foot the bill by himself.« Back to Glossary Index