What is Car Insurance Medical Payments (MedPay) Coverage?

With medical payments coverage, you can worry less about hospital bills in case of a car accident.

By Kimberly Olson Published March 29, 2022

The aftermath of a car accident is stressful, but your auto insurance policy can help eliminate some of the worries that come with an incident. When you—or one of your passengers—gets hurt, medical payments coverage on your policy can help pay for medical treatments related to car accidents.

What are car insurance medical payments?

When someone gets hurt in an accident—whether it’s you, another driver listed on your policy, or any of your passengers—auto medical payments coverage (sometimes called MedPay) can help cover the medical expenses.

What does medical payments insurance cover?

Medical payments insurance covers medical costs from car accident injuries, and usually includes:

Ambulance fees and EMT costs.
Doctor visits.
Hospital stays.
Surgery.
X-rays.
Nursing care.
Prostheses.
Necessary dental procedures.
Health insurance deductibles or copayments.

If someone is fatally injured in an accident, MedPay can also cover funeral expenses.

What isn’t covered by medical payments coverage?

Medical payments usually don’t cover expenses such as:

Reimbursement for lost wages if the injured person can’t work.
Child care costs if the injured person can’t care for a child.
Medical expenses for the driver of the other car, even if you caused the accident.

You may be able to purchase additional insurance coverage that will cover these expenses. Personal injury protection covers lost wages and child care costs, while liability insurance pays for other drivers’ medical care.

Does medical payments coverage apply only while I’m driving?

MedPay coverage can also pay your medical bills if you’re hit by a vehicle while walking on a designated road, biking, using public transportation, or riding in someone else’s vehicle.

How does medical payments coverage work compared to health coverage?

If you already have health insurance, why spend more for medical payments coverage? MedPay may offer an extra layer of protection that can help fill in the gaps when you have an accident. If you get hurt and your medical expenses exceed your health plan’s limits, for example, medical payments coverage kicks in and helps foot the bill. You can also claim your health insurance deductible—which might be thousands of dollars—or your copayment. And some health care policies don’t cover expenses for injuries caused by a vehicle accident. MedPay coverage, on the other hand, can help pay those bills.

How does medical payments coverage work compared to personal injury protection?

Personal injury protection and medical payments both cover medical care for car accident injuries. But personal injury protection offers a wider range of benefits, like psychiatric care and compensation for lost income if an injured person has to take time off of work.

While personal injury protection offers more comprehensive benefits, it requires paying a deductible. MedPay does not. Also, liability coverage won’t pay out claims until it’s determined who was at fault in the accident. If there’s a disagreement over that and you end up in court, that payment could take months.

Your insurance agent can help you decide which type of coverage is best for you. Keep in mind that if you live in a no-fault state, personal injury protection isn’t optional—it’s required.

How does medical payments coverage work for claims payment?

If you or others are injured in an accident, contact your auto insurance carrier right away to begin the claims process. You should also inform your health insurance provider, and be sure to let them know about your medical payments coverage and the other driver’s auto policy.

Some doctors or hospitals will bill your auto insurance company directly. Others will bill you, and you’ll need to get reimbursed. In some cases, your auto and health insurance carriers will work together to handle the payments.

MedPay can offer peace of mind in challenging times. The cost of medical payments coverage can be fairly low, the policy may cover medical expenses your health plan doesn’t, and there are no deductibles or copays.

AAA offers auto insurance with medical payments coverage added, to help pay medical bills after a car accident for both you and your passengers. A company with more than 100 years of experience protecting drivers, AAA has earned a reputation for stellar customer service.