Medical payments (MedPay) coverage is one of the forms of auto insurance coverage that pay for your medical treatment after an accident. MedPay coverage might not be mandatory, but it is nevertheless useful to have. Below are the specific reasons to consider MedPay coverage.
Your State Doesn't Have PIP
Personal injury protection (PIP) and MedPay can both pay your medical bills in an auto accident. Some states have laws that make PIP coverage mandatory. However, PIP is not available everywhere. MedPay is the only option for coverage if your state doesn't have PIP.
You Want To Avoid Deductibles
Most forms of insurance policies come with a deductible. The deductible is the amount of money you have to settle out of pocket before the insurance company settles a claim. For example, if your health insurance has a $500 deductible and you have a $3,000 claim, you pay $500, and your carrier settles the remaining $2,500.
Fortunately, MedPay doesn't have a deductible. With MedPay, if you have a $3,000 claim, your insurance company pays the entire bill of $3,000. Thus, MedPay ensures you have adequate treatment (up to your insurance limits) even if you don't have cash.
You Have Limited Health Insurance
For those who have medical insurance, the coverage pays their medical bills after an auto accident. However, you cannot rely on your medical insurance to settle your entire medical bills in case of a car accident.
For one, medical insurance policies come with deductibles, some of which are relatively high. That means you might fail to get adequate treatment if you don't have emergency cash to pay the deductible. Secondly, your medical insurance has a limit — just like other insurance coverage. That means you need additional money for complete treatment in case of expensive medical bills.
MedPay coverage can help you out on both fronts. For one, MedPay can pay for your health insurance deductible. Secondly, you can also combine MedPay and health insurance to settle expensive medical bills.
You Need Cheap Coverage
Lastly, you will be glad to know that MedPay is relatively cheap. The typical cost for MedPay coverage ranges from $2 to $37 per month. Note that you must have liability coverage (mandatory auto insurance) before you can get MedPay.
Hopefully, you have either PIP or MedPay coverage — get one if you don't have either. Talk to an auto insurance agent for more information about auto insurance coverage.
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