When most people hear the term “car insurance,” their mind automatically thinks about coverage for their vehicle. Rarely do we think about how we would pay for medical bills if we were ever involved in a car accident.
While getting coverage for your car is important, it’s also important to look out for your health. If you want to make sure that you have a way to pay for your injuries after a car accident, you can add medical payments coverage to your car insurance policy.
Here are some of the key points you need to know about medical payments coverage.
How Does Medical Payments Coverage Work?
If you get injured in a car accident that was your fault, you would typically be responsible for the cost of your medical bills. With medical payments coverage, your insurance will pay for your medical bills regardless of whose fault it was.
Some of the other incidents that your medical payments insurance might cover include:
- Funeral costs.
- Your passengers’ injuries.
- Injuries you might have gotten from being hit by a car while walking or riding a bike.
- Any dental treatment that is needed due to an accident-related injury.
This is a general summary of what most medical payments insurance plans will cover, but it’s important to know that all plans will differ. It’s important to talk with an insurance agent before you buy so that you know what you are buying for if you decide to purchase it.
What Is The Difference Between Bodily Injury Liability Insurance And Medical Payments Coverage?
Most states require their drivers to have liability coverage on their insurance policy. If you already have bodily injury liability coverage on your insurance policy, you might be wondering why you would need medical payments coverage. The answer to this is that the two are not the same.
Liability insurance is the type of coverage that protects the other driver in an accident that you have caused. For example, if you were to hit another driver on the road, your bodily injury liability insurance would cover the costs of their:
- Medical expenses.
- Compensation for lost wages and income.
- Legal fees if you end up needing to go to court.
In other words, your bodily injury liability insurance is there to protect you from having to pay out-of-pocket for another driver’s injuries in an accident you have caused. Conversely, if you are injured in an accident, medical payments coverage will help you pay for your medical expenses regardless of whose fault the accident was.
Buying Medical Payments Coverage
Most states do not require their drivers to purchase medical payments coverage. It is typically optional in most states, however some states might require your policy to already include it. In most cases, you can reject this in writing if you do not want to add it to your policy.
It’s important that you know what the minimum requirements are for car insurance in your state before adding on additional coverage types.
Here are some factors you should consider before buying medical payments coverage:
- Your current health insurance plan: If your current health insurance plan provides sufficient coverage for accident-related injuries, you may not need to consider medical payments coverage. On the other hand, if you do not have health insurance or your health insurance isn’t sufficient, purchasing medical payments coverage might benefit you.
- Your Personal Injury Protection (PIP): Do you live in a no-fault state? If so, you might already have PIP coverage on your car insurance policy. While PIP and medical payments coverage are similar in nature, there are a few differences. For example, PIP is a required coverage type in no-fault states and is only available in these states. PIP will also cover payments for loss of income and wages due to accident-related injuries, whereas medical payments coverage typically will not.
- The cost of coverage: In a perfect world, everyone would be as insured as possible. While it’s always safe to be prepared for the worst, we also need to make sure we are buying what we can afford. There are several different factors that influence the amount of money you will spend on monthly premiums, such as your:
- Driving record.
- Claims history.
- Age and years of driving experience.
- Sex.
- Marital status.
- Place of residence.
That being said, it’s important to note that medical payments coverage is one of the cheapest types of car insurance there is. If you have a few extra bucks to spend on car insurance each month, it might be worth looking into.
Speak to an insurance agent for more information.