Importance of Med Pay Insurance Coverage

medpay-300x225Health insurance policies do not typically cover all of your medical expenses if you get into an accident. The amount that you may be responsible for paying yourself can create a financial hardship. Med Pay, or medical insurance payments, coverage is meant to help cover this gap in coverage. Here’s what you should know about Med Pay.

What Is Med Pay?

Med Pay is an add-on to your auto insurance policy. It covers the driver and any passengers in the vehicle for medical and/or funeral expenses that are considered necessary and reasonable. Medical coverage typically includes hospitalization, surgical procedures, x-rays, chiropractic treatments, and even prosthetics. Coverage amounts will vary based on your policy. Med Pay benefits may be used regardless of who is at fault for an accident. It does not replace health insurance since it only covers in case of an accident, but it can be a good supplement to health insurance.

Is MedPay Different from PIP?

PIP, or Personal Injury Protection, is similar to Med Pay in that it covers medical expenses in the case of an accident. However, it’s a bit more comprehensive than Med Pay and covers some non-medical expenses as well. PIP coverage typically includes physical therapy rehab, psychiatric treatment, and lost wages. In the state of Massachusetts, you may purchase both Med Pay and PIP. PIP is required by state law and Med Pay is an add-on.

Importance of Med Pay Insurance Coverage

When considering a Med Pay add-on to your insurance policy, look into what health insurance may cover for you and your family members. What expenses might you directly incur if you are injured in an accident? The cost for adding Med Pay is usually minimal compared to its benefit. Since MedPay is for reimbursement of medical costs, you will still need to initially pay those added expenses out-of-pocket in order to submit a receipt to Med Pay for reimbursement.

Contact your insurance agent for additional information on Med Pay Insurance Coverage. This information is intended only as a general overview and should not be construed as legal or financial advice. Know your options so that you can make better decisions on your insurance needs.