What is Medical Payments Coverage for Car Insurance?

Medical payments coverage, or MedPay in short, is an optional add-on coverage in most states that pays the medical expenses of you and your passengers after a car accident, regardless of who’s at fault for the accident.

The MedPay coverage is available across most states in the U.S., and it's mainly helpful for covering immediate medical costs after an accident, such as ambulance fees and emergency treatments, as well as doctor visits, medical tests, hospital stays, and surgeries, and other essential expenses up to your policy’s coverage limit.

The best part is MedPay insurance can cover your medical expenses up to 3 years from the date of the accident. This means it can cover long-term treatment costs for severe accidental injuries from car accidents.

If you’re wondering whether you should add medical payments coverage to your auto insurance policy, it’s important to understand how it works. This article explains whether MedPay is legally required, how it differs from health insurance, what it covers and doesn’t cover, how it compares to liability and PIP coverage, how reimbursement works, and real-world experiences with MedPay.

Is Medical Payments Coverage Legally Mandatory?

The medical payments coverage is an optional add-on coverage for auto insurance in most states, while it is required by only three states under specific conditions, which include.  

• Maine: Legally mandatory with a minimum coverage limit of $2,000 per person. 
• New Hampshire: Legally mandatory if car insurance is purchased with a minimum coverage limit of $1,000 per person 
• Pennsylvania: Legally, you’re required to carry first-party medical benefits of $5,000 in your car insurance policy, which can be fulfilled with the Medpay coverage, although Medpay coverage itself isn’t a mandatory requirement.

Even if medical payments coverage is not mandatory in your state, it is a necessary coverage option, especially to cover upfront medical fees after a car accident. Depending on the severity of the accident, it can cost you a significant amount on medical expenses, which can be financially overwhelming. 

Adding MedPay coverage can help you mitigate out-of-pocket expenses and provide adequate financial protection, especially if you want extra coverage beyond health insurance. Choosing coverage from a reliable insurance provider offering an affordable auto insurance policy can help ensure you stay protected while keeping costs within your budget.

Is Medical Payments Coverage the Same as Healthcare Insurance?

No, medical payments coverage is not the same as healthcare insurance. Medical payments coverage (MedPay) is designed specifically to help pay for medical expenses resulting from a car accident, regardless of who is at fault. This can include emergency treatment, medical bills, and, in some cases, funeral expenses following an auto-related injury or death. 

Health insurance, on the other hand, provides broader medical coverage for a wide range of situations, including car accident injuries, illnesses, and chronic conditions. However, health insurance claims may involve deductibles, copays, provider networks, and verification processes, which can result in out-of-pocket expenses after an accident. 

MedPay helps bridge this gap by covering eligible medical costs related to a car accident without waiting for fault to be determined. This can make it especially useful for covering immediate or upfront medical expenses while health insurance claims are being processed. 

When you have both MedPay and health insurance, MedPay typically pays eligible accident-related medical expenses first, up to its coverage limit. Once those limits are reached, health insurance may help cover the remaining medical costs, depending on your policy terms.

What Does MedPay Insurance Cover?

To understand how useful MedPay insurance can be in the event of a car accident, it is essential to know what it specifically covers. This will help you determine whether you need this coverage or how necessary it can be to cover medical expenses, and even funeral costs. 

Medical payments coverage typically includes the following accident-related expenses. 

Accidents Inside and Outside the Car   

MedPay insurance can help cover medical expenses for injuries sustained both inside and outside your vehicle as a result of a car accident. This includes injuries to you or your passengers while riding in the car, as well as situations where you are injured as a pedestrian or while entering or exiting your vehicle, depending on your policy terms. 

Typically, as MedPay coverage is tied to the accident rather than fault, it can provide financial support for medical costs even if the injuries occur outside the vehicle itself. For example, if you are struck by a car while walking or riding a bicycle, MedPay may still help pay your medical bills up to your policy’s coverage limit. 

Emergency Treatment

MedPay insurance can help cover the cost of emergency medical treatment required immediately after a car accident. This includes ambulance services, emergency room care, and urgent medical procedures. 

When it comes to emergencies, MedPay coverage offers reliable financial protection, as it can help you avoid high out-of-pocket costs, especially when you need to pay upfront medical fees.  

Medical Bills

The most essential benefit of the MedPay coverage is that it covers a wide range of medical bills resulting from a car accident. Common medical expenses covered by MedPay may include:

• Ambulance and emergency transportation fees 
• Emergency room (ER) treatment 
• Hospital stays and inpatient care 
• Doctor and surgeon fees 
• X-rays, MRIs, CT scans, and other diagnostic tests 
• Prescription medications related to the accident 
• Chiropractic treatment 
• Physical therapy and rehabilitation 
• Follow-up medical visits 
• Dental treatment for accident-related injuries 
• Prosthetics and medical devices (e.g., crutches, braces, neck collars) 
• Nursing services or in-home medical care

Although the MedPay Insurance is designed to cover upfront medical costs, it can also cover long-term medical costs for up to 3 years after the accident, depending on your policy’s coverage limits.

Healthcare Insurance Gaps  

If you or your passengers get injured in a car accident, it’s essential to get immediate medical care, depending on the severity of the injuries. Even if you have health insurance, out-of-pocket costs such as deductibles, copayments, and coinsurance can still apply. 

In many cases, MedPay coverage applies first, helping pay eligible accident-related medical expenses up to its coverage limit. Once those limits are reached, health insurance can cover the remaining medical costs.  

Care Giver and Rehabilitation Costs

If you need ongoing care or rehabilitation after a car accident, MedPay insurance can help cover related expenses. This may include physical therapy, occupational therapy, rehabilitation programs, and nursing or in-home caregiver services required during recovery.  

If you need 24/7 in-home caregiver services for a certain period, it can cost you about $200 per day, or $6,000 per month. The cost can be even higher, up to $12,000 per month or more, depending on the caregiver’s skills and the services required.  

So, if you have adequate MedPay coverage, your auto insurance policy can cover the caregiver expenses up to the policy’s coverage limits, providing peace of mind as it protects you from a hefty out-of-pocket expense.  

Medical Equipment  

Whether you’re receiving treatment at the hospital or recovering at home after a car accident, you may need specific medical equipment to support your recovery. This may include items such as crutches, braces, neck collars, wheelchairs, walkers, prosthetics, nebulizers, and other medically necessary equipment prescribed as part of your treatment. 

Another key benefit of the medical payments coverage is that it covers the expenses required to purchase or access these medical equipment, which can essentially protect you from high financial costs up to your coverage limit.  

Funeral Expenses

Unfortunately, car accidents can sometimes result in fatal injuries. According to the most recent NHTSA statistics, traffic crashes have resulted in 39,345 fatalities in 2024, and in previous years, more than 40,000 people have died each year due to motor vehicle crashes. 

In such tragic situations, medical payments coverage can help cover funeral and burial expenses for you or a passenger if the car accident leads to death, up to your policy’s coverage limit. 

What Does MedPay Insurance Not Cover?

While MedPay insurance helps cover emergency treatment, medical bills, and funeral expenses after a car accident, it does not cover everything. Certain expenses and situations are specifically excluded from MedPay coverage, which includes the following. 

• Vehicle repair or property damage 
• Lost wages or loss of income 
• Injuries to other drivers (covered under liability insurance) 
• Medical expenses beyond your policy’s coverage limit 
• Childcare or household expenses  
• Any illness or medical treatment not related to a car accident

How Much Does MedPay Insurance Cost?

The cost of Medical Payments (MedPay) coverage is generally low compared to other types of auto insurance coverage. According to data from ValuePenguin, average monthly MedPay costs typically fall within the following ranges: 

• Around $3 per month for $1,000 in coverage 
• About $5 per month for $2,500 in coverage 
• Roughly $6 per month for $5,000 in coverage 
• Approximately $8 per month for $10,000 in coverage

In most cases, MedPay coverage costs between $1 and $20 per month, depending on your location, insurer, selected coverage limit, and other factors that influence your auto insurance premium. Higher limits, such as $50,000 or $100,000, often remain affordable, with average monthly costs commonly ranging from $15 to $20.

How Much Medical Payments Coverage Do I Need? 

Medical payments coverage is typically available in limits ranging from $1,000 to $100,000, depending on your insurer and state. The right amount for you depends on factors such as your health insurance deductible, potential out-of-pocket costs, and how much financial risk you’re comfortable taking on after an accident. 

Many drivers choose $5,000 to $10,000 in MedPay coverage when they already have a solid health insurance plan. While health insurance can help cover accident-related medical care, it often involves deductibles, copayments, and claim processing delays, which can leave you paying expenses upfront. 

If you’re trying to figure out how much medical payments coverage you should get, you should opt for a coverage limit of $25,000 or more, considering that you have a high-deductible health plan or want quicker access to medical funds. In some states, $25,000 is the maximum available limit, while others allow higher amounts. 

So, it’s best to ensure you have access to the highest available limit. MedPay limits up to $100,000 can provide additional financial protection in the event of serious injuries and rising medical costs, as you can get it for a small additional cost of $5 to $20 per month. 

Ultimately, its your choice, as you can get a higher coverage at an affordable rate, it’s best to opt for optimal protection. If you’re unsure which limit to choose, this Reddit thread offers a helpful real-world example.  

In the discussion, a user asks whether upgrading MedPay coverage from $2,000 to $100,000 is worth an additional $4.62 per month. Most people agree that increasing the coverage is worth it for an extra cost of less than $5.   

The average cost of car insurance is $2,100 per year, so even with the $100k medical payments coverage, it will cost you approximately an extra $240, so you would pay about $2,240 in total for full coverage, which is a major upgrade for a small additional fee.

What is the Difference Between Liability and Medical Payments Coverage?

Liability coverage only pays the medical expenses of the other driver, their passengers, pedestrians, or any third party who has been hurt or injured in a car accident where you’re at fault. It specifically covers the other person’s medical fees, not yours, or your passengers. 

Whereas the medical payments coverage is specifically designed to cover the medical expenses of you and your passengers in the event of an accident, regardless of who’s at fault.  

So, here’s the difference between liability and medical payments coverage in a nutshell. 

• Injury Coverage: Liability covers other drivers, passengers, and pedestrians; MedPay covers you and your passengers. 
• Fault requirement: Liability applies only when you’re at fault; MedPay applies regardless of fault. 
• Medical expenses: Liability pays for others’ medical bills; MedPay pays for your medical expenses. 
• Legal requirement: Liability coverage is required in most states; MedPay is usually optional. 
• Primary purpose: Liability protects you from injury claims and lawsuits; MedPay helps pay immediate medical costs after an accident.

What is the Difference Between PIP and MedPay Insurance?  

Personal Injury Protection (PIP) is similar to medical payments coverage (MedPay) in that both help pay medical expenses after a car accident, regardless of who is at fault. PIP typically offers broader benefits, which may include emergency treatment, ongoing medical care, lost wages, caregiver services, and funeral expenses, depending on state law. 

While the two coverages share some similarities, there are important differences between PIP and MedPay, including the following: 

• Scope of benefits: PIP covers medical expenses, lost wages, and essential services, whereas MedPay typically covers medical expenses only. 
• Lost income coverage: PIP may pay for lost wages if you’re unable to work, while MedPay does not cover lost income. 
• Legal requirement: PIP is required in no-fault states, while MedPay is optional in most states. 
• Coverage limits: PIP limits are often higher and set by state law, whereas MedPay limits are usually lower and chosen by the policyholder.

How to Get Reimbursed by Medical Payments Coverage?

If you or your passengers need medical treatment after a car accident, follow these steps to file a medical payments coverage claim and get reimbursed. 

• Contact your insurer and report the accident requiring medical treatment. 
• File a claim under your MedPay coverage. 
• Gather medical bills, receipts, and proof of treatment. 
• Complete and submit the medical payments claim form. 
• Provide any additional documentation your insurer requests. 
• Track your claim and follow up until reimbursement is issued.

Is Medical Payments Coverage Worth It? Let’s Explore Some Actual Experience!

While the features and benefits of medical payments coverage sound helpful, how reliable and effective is it in reality? Is Medpay coverage worth it? Let’s explore the direct experience from policyholders who have recently benefited from the Medpay coverage after a car accident. 

Micheal Smith’s Experience

Michael Smith was driving home from work one evening with his wife riding as a passenger when another vehicle suddenly collided with their car. Both Michael and his wife suffered injuries that required immediate medical attention, including emergency room treatment and follow-up care. 

Michael had $10,000 in medical payments coverage (MedPay) on his auto insurance policy, which helped pay their upfront medical bills, including ambulance fees and ER costs.  

Since Michael’s health insurance plan carried a $3,000 deductible along with copayments for hospital visits and imaging, MedPay helped cover those out-of-pocket expenses while their health insurance processed the remaining claims. 

Sophie Hopkin’s Experience

Sophie Hopkins was crossing the road when she was struck by a car, resulting in a severe head injury that required immediate medical attention. She was rushed to the hospital, where she underwent emergency surgery costing $10,000, followed by post-operative care totaling $5,000. 

Sophie had $50,000 in medical payments coverage (MedPay) on her auto insurance policy. This coverage helped pay the upfront medical expenses, including the emergency surgery and post-operative treatment, allowing her to receive care immediately precisely when she needed it the most. 

Takeaways from the Incidents 

In both cases, medical payments coverage (MedPay) played a crucial role by providing immediate funds for ambulance services, emergency treatment, and necessary medical care at the time of the accident.  

In Michael and his wife’s case, MedPay helped cover upfront medical bills and health insurance deductibles and copays while their health insurance processed the remaining costs.  

For Sophie, having adequate MedPay coverage made it possible to pay urgent surgical and post-operative expenses right away, without waiting for fault to be determined. Overall, MedPay helped reduce financial pressure during medical emergencies and ensured timely access to care when it mattered most. 

The Bottom Line: Should You Get Medical Payments Coverage?

Yes, Medpay coverage is the best alternative if PIP coverage isn’t available in your state. No matter how careful you are, car accidents can happen anywhere when you’re on the road. In most cases, you may need emergency treatments, doctor visits, and hospital stays that can cost a hefty amount.  

Even if you have a strong healthcare policy, in most cases, it does not handle car accident emergencies as quickly and effectively as Medpay coverage does. So, to keep yourself financially covered in case a car accident leads to a medical emergency, you should consider having medical payments coverage, unless you have access to PIP coverage. 

If you’re interested in exploring a medical payments coverage plan for your auto insurance policy, contact us to get a detailed guide with a free quote to secure your finances.

Frequently Asked Questions (FAQs)

Who is covered by medical payments coverage?

Medical payments coverage (MedPay) usually covers you and your passengers for medical expenses after a car accident, no matter who caused it. In some cases, it can also cover you if you’re injured as a pedestrian or while riding in another vehicle, depending on your policy and state laws. 

Is Medical Payments Coverage available everywhere in the U.S.? 

Medical payments coverage (MedPay) is available in most U.S. states, but it is not offered everywhere. States where MedPay coverage is not available include Minnesota, New York, North Dakota, and Oregon. 

How quickly does MedPay pay claims?

MedPay claims are often processed relatively quickly because fault does not need to be determined, though timing varies by insurer. 

Does MedPay increase my car insurance premium?

Adding MedPay usually increases your premium slightly, but the cost is often relatively low compared to the medical expenses it can help cover. 

Is MedPay worth it if I already have good health insurance?

MedPay can still be useful even with good health insurance because it helps cover upfront costs like deductibles and copays after an accident.