Here's something most people don't realize about car accidents: your health insurance might not cover everything. Even if you weren't at fault, you could end up paying hundreds or thousands in deductibles and copays while waiting for the other driver's insurance to sort things out. That's where Medical Payments Coverage—or MedPay—comes in.
MedPay is like a safety net for your medical bills after a car accident. It covers you and your passengers immediately, no matter who caused the crash. No deductibles. No copays. No waiting around for fault to be determined. And the best part? It usually costs less than your monthly coffee habit.
What Exactly Is MedPay?
Medical Payments Coverage is an optional add-on to your auto insurance policy that pays for medical expenses after a car accident. It covers you as the driver, anyone riding in your car, and even your family members if they're injured as pedestrians or while riding in someone else's vehicle.
What makes MedPay different from other coverage is how quickly it kicks in. Unlike bodily injury liability coverage, which only pays if you're at fault, MedPay works regardless of who caused the accident. You don't need to wait for insurance companies to argue about fault or file a lawsuit. The money is there when you need it most—right after the accident.
MedPay typically covers emergency room visits, ambulance rides, hospital stays, surgical procedures, X-rays and diagnostic tests, dental work needed due to the accident, and even funeral expenses in worst-case scenarios. Some policies even cover chiropractic care and physical therapy as you recover.
How MedPay Works With Your Health Insurance
If you already have health insurance, you might wonder if MedPay is redundant. Here's the thing: they work together, not against each other. MedPay acts as your first line of defense, paying your immediate medical bills without any deductible or copay. Then your health insurance can handle any costs that exceed your MedPay limits.
This is especially valuable if you have a high-deductible health plan. Let's say you have a $5,000 health insurance deductible and $5,000 in MedPay coverage. After a car accident sends you to the ER with $7,000 in medical bills, your MedPay covers the first $5,000 instantly. Then your health insurance kicks in for the remaining $2,000. Without MedPay, you'd be paying that entire $5,000 deductible out of pocket.
According to the Insurance Information Institute, the average bodily injury claim after an accident in 2021 reached $22,734. That's a significant financial hit, especially when you're already dealing with the stress and pain of an injury. MedPay helps bridge the gap between when bills arrive and when other insurance or settlements come through.
MedPay vs. Personal Injury Protection (PIP)
If you've been shopping for auto insurance, you've probably come across Personal Injury Protection, or PIP. These two coverages sound similar, but they're quite different in scope and cost.
PIP is broader than MedPay. It covers medical expenses plus lost wages, childcare costs if you can't care for your kids due to injuries, and even funeral expenses. It's mandatory in several no-fault states like Oregon, Delaware, and Maryland. The average cost of PIP coverage nationwide is about $191 per year.
MedPay, on the other hand, is focused solely on medical expenses. It's simpler, more affordable (typically around $20 per year), and only required in Maine and New Hampshire. The trade-off is that MedPay won't replace your lost income or cover household services like PIP will. However, many people find that MedPay offers exactly what they need at a fraction of the cost.
One key difference: PIP generally doesn't require repayment if you later recover money from an at-fault driver, while MedPay often does. This is called subrogation, and it means your insurance company might recoup what they paid out if you win a settlement or lawsuit.
How Much MedPay Coverage Do You Need?
Coverage limits for MedPay typically range from $1,000 to $10,000, though some insurers offer up to $100,000. The sweet spot for most people? Match your MedPay limit to your health insurance deductible.
If you have a $2,000 deductible on your health plan, consider getting $2,000 in MedPay coverage. This way, you're protected against those immediate out-of-pocket costs after an accident. For those with high-deductible health plans (HDHPs), experts recommend at least $5,000 in MedPay coverage.
The cost difference between coverage levels is surprisingly small. Moving from $2,000 to $10,000 in MedPay coverage typically costs around $10 per year. Given that a single ER visit can easily run $3,000 or more, that extra protection is usually worth the price of lunch.
Who Really Needs MedPay?
MedPay isn't for everyone, but it's incredibly valuable for certain drivers. If you don't have health insurance, MedPay is almost essential—it's your only financial protection against medical bills after an accident. Even if your state doesn't require it, the peace of mind is worth the small premium.
Drivers with high-deductible health plans should seriously consider MedPay. When your health insurance won't pay a dime until you've spent $3,000, $5,000, or even $7,000 out of pocket, MedPay becomes your financial buffer. It covers those expensive upfront costs while you're still recovering.
Parents should also take note: MedPay covers your passengers, including your kids. If you're in an accident with your children in the car, their medical expenses are covered too, regardless of fault. For families who frequently have kids and their friends in the car, this protection extends to everyone riding with you.
On the flip side, if you have excellent health insurance with low deductibles and comprehensive coverage, MedPay might be less critical. However, at $5 to $20 per year for most policies, it's still affordable peace of mind that ensures zero out-of-pocket costs for accident-related medical care.
How to Get MedPay Coverage
Adding MedPay to your auto insurance policy is straightforward. Contact your insurance agent or log into your online account and look for optional coverages. You'll choose a coverage limit—usually between $1,000 and $10,000—and the premium will be added to your policy.
Note that MedPay isn't available everywhere. States like Minnesota, New York, North Dakota, and Oregon don't offer it because they have mandatory PIP coverage instead. In most other states, though, you'll find MedPay as an optional add-on.
When you're comparing quotes, don't just look at the bottom line. Ask specifically about MedPay coverage limits and costs. Some insurers offer more flexibility than others. Geico, for instance, offers lower limit options starting at $500, while State Farm provides higher limits up to $100,000.
The reality is that car accidents happen, even to careful drivers. Medical bills don't wait for fault to be determined or lawsuits to settle. MedPay gives you immediate access to funds for medical care when you need it most, without the hassle of deductibles or fighting with insurance companies. For less than the cost of a single pizza each year, you can protect yourself and your passengers from thousands of dollars in medical expenses. That's not just smart insurance—it's peace of mind.
