Here's something that catches most people off guard: after a car accident, your auto insurance might not automatically cover your medical bills. That's where Medical Payments Coverage—better known as MedPay—comes in. This optional coverage is one of the most misunderstood parts of auto insurance, but it's also one of the most practical. For less than the cost of a single coffee per month, MedPay can save you from wrestling with health insurance deductibles and copays after an accident.
Whether you're the careful driver who's never filed a claim or you're comparing coverage options for the first time, understanding MedPay can help you make smarter decisions about protecting yourself and your passengers. Let's break down what it is, how it works, and whether it makes sense for you.
What Is MedPay and How Does It Work?
Medical Payments Coverage is optional auto insurance that pays for medical expenses after a car accident—no matter who caused it. That last part is crucial. Even if you ran a red light and caused the collision, MedPay will still cover your medical bills and those of your passengers. There's no deductible, no copay, and no need to prove the other driver was at fault.
Think of MedPay as a safety net that kicks in immediately. If you or your passengers need an ambulance ride, emergency room treatment, X-rays, surgery, or follow-up care, MedPay pays the bills up to your coverage limit. Most policies offer limits between $1,000 and $10,000, though some insurers offer coverage as high as $50,000 or even $100,000.
Here's what makes MedPay particularly valuable: it doesn't just cover you when you're driving your own car. If you're injured as a pedestrian, riding a bike, taking public transportation, or riding in someone else's vehicle, your MedPay coverage follows you. This portability extends to family members listed on your policy too, giving you broader protection than you might expect.
What MedPay Covers (and What It Doesn't)
MedPay covers medical expenses related to car accidents. That includes emergency room visits, hospital stays, surgeries, X-rays and imaging, doctor visits, ambulance rides, dental work needed because of the accident, and even funeral expenses if someone is fatally injured. The coverage applies to you, your passengers, and family members listed on your policy.
But MedPay has clear boundaries. It only covers medical bills—nothing else. You won't get reimbursement for lost wages if you can't work after the accident. It won't pay for someone to clean your house or care for your kids while you recover. And it won't cover pain and suffering. Those types of expenses might be covered by Personal Injury Protection (PIP) if you have it, but they're outside MedPay's scope.
The average bodily injury claim after an accident in 2021 was $22,734, according to the Insurance Information Institute. Even a $5,000 MedPay policy won't cover the full cost of a serious injury, but it can make a meaningful dent in your out-of-pocket expenses while your health insurance or other coverage handles the rest.
MedPay vs. PIP: What's the Difference?
If you've heard of Personal Injury Protection (PIP), you might be wondering how it differs from MedPay. The short answer: PIP is MedPay's more comprehensive—and more expensive—cousin.
Both MedPay and PIP pay for accident-related medical expenses regardless of fault. But PIP goes further. It covers lost wages (typically up to 80 percent), replacement services like childcare or housekeeping if you're unable to work, and funeral expenses. PIP also comes with higher coverage limits and typically costs significantly more—around $191 per year on average, compared to $20 to $50 per year for MedPay.
Another key difference: PIP is required in 13 states with no-fault insurance laws, while MedPay is only required in Maine and New Hampshire (Maine requires a minimum of $2,000 in coverage). In other states, both are optional. Some drivers choose to carry both—MedPay can cover the deductibles and copays that PIP doesn't pay, creating a more complete safety net.
There's also a difference in how insurance companies handle reimbursement. With PIP, your insurer typically can't seek reimbursement from the at-fault driver if you later receive a settlement. With MedPay, they often can—meaning if you win a lawsuit against the other driver, your insurance company might recoup what they paid out under your MedPay coverage.
Who Should Consider MedPay?
MedPay makes sense for different people in different situations. If you have a high-deductible health insurance plan, MedPay can cover those out-of-pocket costs after an accident. A $5,000 health insurance deductible becomes a lot less scary when you have $5,000 in MedPay coverage backing you up.
If you frequently drive with passengers—especially family members who rely on your income—MedPay provides immediate coverage for everyone in the car. There's no need to worry about whether your passengers have good health insurance; your MedPay covers them automatically. This is particularly valuable if you carpool with coworkers, drive your kids and their friends to practice, or regularly give rides to elderly relatives.
MedPay is also worth considering if you don't have health insurance at all. While it's not a substitute for comprehensive health coverage, it provides a financial cushion specifically for car accident injuries. And because it costs so little—often less than $10 per month—it's an affordable safety net even on a tight budget.
On the flip side, if you have excellent health insurance with low deductibles and comprehensive coverage, and you don't regularly drive with passengers, MedPay might be redundant. Your health insurance will already cover most accident-related medical bills. But given the low cost, many people decide it's worth having as an extra layer of protection.
Choosing the Right Coverage Limits
MedPay limits typically come in increments: $1,000, $2,000, $5,000, $10,000, and sometimes $25,000, $50,000, or $100,000. The right choice depends on your health insurance situation and your budget.
If you have a $5,000 health insurance deductible, getting at least $5,000 in MedPay coverage makes sense—it ensures you won't be out of pocket for your deductible if you're injured in a car accident. If you frequently drive with multiple passengers, consider higher limits. A $5,000 limit might cover one person's emergency room visit, but if you have three injured passengers, that coverage gets divided quickly.
The good news is that increasing your MedPay coverage limits doesn't dramatically increase your premium. Going from $1,000 to $5,000 might only cost an extra $10 or $20 per year. Compare quotes at different coverage levels to see what makes sense for your situation.
How to Get Started with MedPay
Adding MedPay to your auto insurance policy is straightforward. Contact your insurance agent or log into your online account to see what coverage limits are available in your state. Ask about the cost difference between coverage tiers—you might be surprised how affordable higher limits are.
If you're shopping for new auto insurance, don't skip over MedPay when you're comparing quotes. Many online quote tools make it easy to see how adding MedPay affects your premium. And if you're not sure whether you need it, get quotes both with and without it so you can make an informed decision.
The bottom line: MedPay is one of those insurance coverages that you hope you'll never need but will be grateful for if you do. For the price of a couple of lattes per month, you get peace of mind knowing that you and your passengers are covered if the unexpected happens. And in a world where emergency room visits can cost thousands of dollars and health insurance deductibles keep rising, that peace of mind is worth a lot.
