Coverage For Medical Expenses Under An Auto Insurance Policy
When getting an auto insurance quote, there are several coverage options for medical expenses. There are a few different ways that auto insurance covers medical expenses: medical payments (Med-Pay), bodily injury liability, and personal injury protection (PIP). Each of these types of coverage is designed for different purposes.
A Med-Pay plan pays for medical expenses for the driver or any passengers that are injured in an accident, even if you are driving another person's car. Med-Pay will pay no matter who caused the accident. If another driver is at fault, the insurer will pay the claims but may seek reimbursement from the other driver's insurance. Med-Pay insurance covers medical expenses incurred within three years of the date of the accident. This coverage can range from $5,000 to $100,000. You may want to select a lower limit if you already have health insurance.
PIP covers medical expenses resulting from an auto accident. It also covers lost wages and funeral expenses. This coverage is for the driver and passengers. Some states require this type of coverage. You may already have health and disability insurance that would provide the same benefits. This type of insurance is more expensive than Med-Pay coverage. The additional premium will be reflected in a higher auto insurance quote.
If a driver lives in a no fault state, PIP insurance is required to pay for 80 percent of an injury claim, and the driver is responsible for the remaining 20 percent. If the driver has Med-Pay insurance, it would pay the drivers part of the medical expenses.
Bodily injury coverage is for those who are injured when you are at fault in an accident. It covers medical expenses and loss of income. If the other party sues you for pain and suffering, then you want to have enough coverage to protect yourself. Bodily injury coverage does not cover the driver or passengers in your car. This coverage is purchased on each car.
Before purchasing auto insurance that covers medical expenses, consider what health insurance or disability coverage that you and your passengers already have. You may decide that additional coverage is not needed. Some coverage is required by law such as bodily injury liability and personal injury protection. Other coverage such as PIP helps protect you from litigation. When you get an auto insurance quote, be sure that the quote includes the coverage you are required to have and the options that you want to include. Based on the level of coverage that you need and the premiums that you are willing to pay, you will be able to find the right plan for you.