What are MEDICAL PAYMENTS under Coverages and Limits in Auto Insurance?

18.03.2021
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Introduction

Auto insurance is defined as a contract between the insured and insurance carrier that protects the insured against financial loss in the case of an accident or theft. The insured person or the policyholder has to pay premiums for the coverage set forth in the insurance policy.

All states have regulations that set the minimum amounts of insurance or other financial security the vehicle owners have to pay for the loss caused by their negligence behind the wheel if an accident occurs. All vehicle owners are legally bounded to buy at least the minimum amount of liability coverage set by state law.

In this blog, we will discuss the most widely used add-on insurance policy that covers expenses related to a vehicular accident. Add-on insurance policies are optional coverages that can be added as per the requirement of insured ones.

What Is Medical Payments Coverage?

Medical payments coverage (also known as medical expenses or Medpay) is defined as an auto insurance policy that may help to pay for the treatment of injuries of an insured owner or passengers who suffer in a car accident. In the case of this insurance policy, it does not matter who is at fault in the accident. It also covers the medical expenses of pedestrians that may be injured during an accident. Further, it protects the insured if he/she is riding as a passenger in another vehicle or is injured by a vehicle as a pedestrian, bike rider, or public transportation rider.

What does Medical Payments insurance cover?

Medical payments coverage, that falls under a car insurance policy covers a number of expenses related to an automobile accident. It covers “reasonable expenses” for injuries that an insured and/or the passengers have after a car accident. Typically, the following expenses are included in a medical payment coverage of auto insurance:

  • EMT and ambulance fees
  • Hospital visits and stays, doctor visits
  • Surgery and X-Rays
  • Professional nursing services and care
  • Prostheses
  • Dental procedures required as a consequence of an accident
  • Injuries sustained as a pedestrian or riding a bicycle if a vehicle hits the insured
  • Funerals

A noteworthy characteristic of Medpay insurance coverage is that MedPay coverage follows the policyholder. In simple terms, if the insured is walking, riding in a friend’s vehicle, or using public transportation, the medical payment coverage remains active. This coverage usually applies in both cases; inside and outside of a state in which an individual is insured.

What is not covered in Medpay insurance?
A Medpay insurance policy provides a wide range of coverages to the insured during an accident, but it is also important to know about the coverages that are not included in Medpay insurance. Some of these coverages are the following:

  • Wage reimbursement if injuries don’t allow the insured to work. Instead of Medpay coverage, PIP does have this benefit.
  • Child care costs if the insured is restricted by accident injuries. PIP(Personal injury protection) coverage includes this benefit.
  • Treatment expenses for injuries to other drivers that might be injured in an accident. Liability insurance covers this benefit.
  • Treatment of injuries or health problems unrelated to a car accident can not be included in Medpay insurance coverage.

Medical Payments Coverage Limits

Similar to other insurance coverages, Medpay coverage is subjected to limits. It means there is a maximum amount that the insurer has to pay for a covered claim. An insured has to choose the MedPay limits at the time of purchasing an auto insurance policy. Medical payments coverage limits can be low as $1,000 or $2,000, but, if the insured thinks that $1,000 doesn’t go very far then he/she can buy higher limits. The maximum amount coverage limits vary by state and insurer, but they’re typical $10,000 or less. Like other insurance policies, the higher the coverage limit in Medpay insurance, the higher the premiums are that the insured has to pay. Therefore Medpay coverage limits should be chosen according to your financial condition, because it may increase the cost of an auto insurance policy.

Any medical expenses that exceed the coverage limit are not the responsibility of the insurer. The insurance company is only responsible to pay the medical charges up to the coverage limit. After that, the insured person has to pay for the expenses that cross the limits. Bear in mind that, unlike health insurance coverage, there are no deductibles in medical payments coverage. This coverage starts paying with the first dollar of incurred expenses.

There are also some circumstances where medical payment coverage will not implement. For instance, medical payments insurance cannot be applied to trailers or other equipment attached to automobiles.

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