What is medical payments (MedPay) coverage auto insurance?

Medical payments coverage (often called MedPay) is a form of car insurance that helps cover medical expenses for you and your passengers after a car crash, regardless of who was at fault. 

Only two states — Maine and New Hampshire — require it, but MedPay is available as an optional coverage in most states. It can be a vital safety net, filling the gaps in your health insurance by covering costs like high deductibles or co-pays after an accident.  

How does medical payments coverage work?

Drivers can use MedPay to cover medical and funeral expenses after a car accident, including ambulance and emergency room bills. MedPay coverage typically works in one of two ways, depending on whether or not you have health insurance: 

• If you have health insurance, MedPay coverage can help to cover your deductible while your medical coverage helps pay for the remainder of your costs.
• If you do not have health insurance, MedPay coverage may act as primary coverage to help pay for all your medical expenses after an accident, up to your policy limits.

No-fault protection

You can file a MedPay claim for medical expenses after a car accident regardless of who was at fault. No-fault coverage provides two advantages: You don’t have to wait for insurance companies to determine fault to make a claim, and you’ll be able to use your insurance even if you’re found partially or fully responsible for the crash. 

Who is covered by Medpay?

MedPay insurance follows the policyholder, not the vehicle. It covers you, family members in your household, and any passengers in your car. It may also cover you and your household members if you’re struck by a vehicle as a pedestrian or cyclist. 

MedPay coverage limits

MedPay will only cover your medical bills up to a certain dollar amount listed on your policy. This is typically a per-person limit. Standard coverage limits for MedPay range from $1,000 to $10,000. You may have the option to customize your coverage limit to match your health insurance deductible. 

What does medical payments coverage cover?

MedPay insurance usually covers: 

• Ambulance bills 
• EMT or paramedic fees
• Emergency room expenses, including X-rays, MRIs, and nursing care
• Surgery bills
• Hospital stays
• Doctor’s visits and follow-up care
• Physical therapy and rehabilitation
• Funeral costs

Coverage may vary. Check your policy documents for coverage details or contact an agent if you have questions. 

What does medical payments coverage not cover?

Medical payments coverage only covers medical, rehabilitation, and funeral costs directly tied to a car accident. You can’t use it to pay your regular medical bills, and you can’t use it to cover other costs, such as lost wages if you’re unable to work due to accident-related injuries. 

Medical payments coverage vs. personal injury protection (PIP)

MedPay is often compared to another common type of no-fault medical auto coverage: personal injury protection (PIP). PIP is a more robust form of coverage that’s required in “no-fault states” — places where your own insurance pays for your injuries after an accident, regardless of who caused it. Currently, 12 states (including Florida, Michigan, and New York) follow this no-fault system to help speed up claims and reduce the need for lawsuits.

MedPay and PIP are not available in all states. In places where one of these coverages is not an option, the other might be. Or, in certain states like Florida, you may be able to add both to your policy.

Key differences between MedPay and PIP

While both MedPay and PIP can help cover medical bills after a car accident, PIP is more comprehensive than MedPay. It doesn’t just pay for doctors, it can also help with lost wages and the cost of daily tasks you can no longer do, like childcare or housework. 

Another key difference is availability. PIP coverage is required in 12 no-fault states. On the other hand, MedPay is typically offered as optional coverage in “tort” states — places where the driver who caused the accident is legally responsible for paying the other person’s damages. In these states, victims usually rely on the at-fault driver’s liability insurance as the default method of recovering losses after a motor vehicle crash.

MedPay is required by law in just two states: 

• Maine: All vehicle owners in Maine must purchase at least $2,000 of MedPay coverage per person. 
• New Hampshire: All personal auto insurance policies in New Hampshire include a minimum of $1,000 of MedPay coverage. 

Do I need medical payments coverage?

Unless you live in Maine or New Hampshire, buying MedPay coverage is optional. However, it’s generally low-cost and may have substantial benefits. 

MedPay could be a good choice if: 

• You have a high-deductible health insurance policy. MedPay can be used to cover your health insurance deductible, reducing out-of-pocket expenses after a serious crash. 
• You don’t have health insurance. If you have no health insurance coverage, MedPay can act as immediate primary coverage for accident-related injuries. 
• You carpool frequently. MedPay covers passengers in your car. If your carpool companions don’t have adequate health insurance, MedPay could simplify the process of covering their costs. 

However, MedPay isn’t always necessary and could leave you overinsured in some cases. For instance, you may not need to add MedPay to your car insurance policy if: 

• You already have PIP coverage. A few states offer both MedPay and PIP as optional coverage. PIP is the more comprehensive option, so adding MedPay on top of this coverage would be redundant. 
• You have excellent health insurance with a low deductible. For drivers with health insurance, MedPay acts as supplemental coverage and is mainly used to pay your deductible. 

How much does medical payments coverage cost?

The cost of MedPay coverage depends on your location and the coverage limits you choose. However, because the limits set for MedPay are generally low, adding this coverage to your policy is typically very affordable. 

The best way to find out how much you might pay for a policy with (and without) MedPay coverage is to request personalized quotes from a few different insurance companies. 

Frequently asked questions

Does MedPay have a deductible? 

No, MedPay coverage usually doesn’t have a deductible. This makes it a great tool for supplementing your health insurance, as you can use it to cover your healthcare deductible without making any out-of-pocket payments. 

Can I use MedPay if the accident was my fault? 

Yes, you can use your MedPay coverage even if you’re found at fault for a crash. MedPay is designed as no-fault auto insurance to allow drivers to get coverage for their medical bills quickly without waiting for a fault determination or a drawn-out third-party liability claim. 

Does MedPay cover lost wages?

No, MedPay doesn’t cover lost wages or replacement services like housework and childcare after a car accident. Those are features of personal injury protection (PIP). MedPay only covers direct medical costs like hospital bills, rehabilitation expenses, and funeral costs. 

Is MedPay required by law?

Drivers are only required to purchase MedPay in two states: Maine and New Hampshire. Auto insurance policies in both states must include a minimum amount of MedPay coverage by default. However, drivers in New Hampshire who can prove they have enough personal assets to pay for any injuries or property damage they might cause in an accident have the option not to purchase car insurance at all. 

How do I file a MedPay claim?

To file a MedPay claim, start by informing your car insurance company of the accident as soon as possible and letting them know that you want to use your MedPay coverage. Be sure to keep any record of the accident (including police reports), as well as itemized receipts for all medical treatment you receive. You’ll submit these documents to your auto insurance provider, which will help you navigate the claims process and, if necessary, coordinate with your health insurance provider to decide what costs each policy will cover.