Stack it smart
The policy pillar guide has worksheets to compare MedPay, PIP, and health insurance deductibles.
Medical Payments coverage (MedPay) functions like mini health insurance tied to your auto policy. It reimburses medical expenses for you and passengers, no matter who caused the crash. Limits range from $1,000 to $25,000 depending on the carrier. Because the coverage is cheap, it is often overlooked. Here is how to evaluate it.
1. What MedPay covers
- Emergency room visits, x-rays, chiropractic care, and follow-up appointments.
- Dental work, prosthetics, or rehabilitation caused by the crash.
- Ambulance rides or airlifts.
- Funeral expenses in the worst-case scenario.
2. MedPay vs PIP
If you live in a no-fault state that mandates PIP, MedPay acts as a supplement. In tort states, MedPay may be your only source of fast medical funds. Unlike PIP, it usually does not replace lost wages. Use both if you want more comprehensive benefits.
3. When MedPay is a must-have
- You carry a high-deductible health plan and want cash for co-pays.
- You regularly carpool friends, coworkers, or kids who may not have coverage.
- You ride as a passenger or pedal cyclist and want protection regardless of the driver's policy.
4. Choosing a limit
Pick a limit that matches or exceeds your health plan's deductible. Many families opt for $5,000 or $10,000 per person because the premium difference between tiers is only a few dollars.
- Add up your typical out-of-pocket medical costs.
- Multiply them by the number of drivers and frequent passengers.
- Select the MedPay limit that would cover at least one emergency room visit per person.
Final tip: MedPay pays quickly because there is no fault investigation. File the claim immediately after a crash, keep receipts, and let your adjuster know if another insurer reimburses you later. That keeps the coverage available for the next incident.