People spend a lot of time dealing with auto insurance. But, one question I get is “What is this medical payments (med pay) coverage that is listed?”
Answer: First, you should know that every insurance policy, the actual policy with all of the conditions and exclusions, has a provision for medical payments, sometimes called “Med Pay” coverage. Not everyone buys it, but more people should. It is in the policy. You just need to ask for it!
Second, med pay pays all reasonable medical expenses incurred as a result of an auto accident for you or anyone occupying your vehicle. The bills must be incurred within one (sometimes three) year of the date of the car collision. So, if you are in a car accident, even if it is your fault, the insurance company will pay your medical bills. That is right – it doesn’t matter who is at fault. Your auto insurance will still pay for your medical bills.
If you receive med pay coverage and the other party was at fault, you may have to pay back your insurance company for what they paid. Some insurance companies, like CSAA, do not require you to reimburse them. That makes it a better coverage for most people. Your bills get paid, but you do not have to pay it back to the insurance company. This coverage is usually a little more expensive, but not too expensive.
Med pay is relatively inexpensive. When your policy is up for renewal, ask your agent how much it would cost to add med pay to your policy. Even if you have health insurance, adding med pay can cover copays, deductibles, and other out of pocket expenses.