When looking for automobile insurance, it can be very confusing. One thing your insurance adjustor will want to add to your insurance policy is med-pay.
But what is med-pay?
Med-pay stands for Medical Payments Coverage. This would cover medical expenses if you were in an automobile accident.
But do I need it?
The answer is yes… and no. If you have a good health insurance policy then you would probably save a few dollars a month by denying med-pay coverage. Your health insurance would pay any bills that you acquire due to an accident and would then be reimbursed by the at fault party just like the med-pay coverage.
If you do not have health insurance or have a high deductible health insurance policy, med-pay may save you money. If you are in a serious accident or even a small fender bender, your bills will not be paid until you settle with the at fault insurance company.
You cannot settle with an insurance company until you are done treating. So if it takes you a year or two to treat for your injuries, you bills will go unpaid. Some facilities may send your bills into collections due to no payment.
Even once you are done treating, it may take several months for your case to settle and to get your outstand bills be paid.
So what should I do?
Like any insurance, you never know if you are ever going to need it. Take a close you at your situation and if you do not have the money or insurance to pay unexpected medical bills then you should add med-pay to your automobile insurance policy.
How much coverage should I get?
If you decide to add medical payments to your policy, the next thing you should decide is the amount of coverage you desire. Most policies begin at $1,000 per person. While $1,000 may sound like a lot, it is not. You agent should recommend an amount between $5,000 and $20,000.
Why so much?
If you were to be involved in a severe accident, a helicopter ride alone could cost $14,000. In addition to medical expenses both you and your family could lose income from their employer if they do not have sick or vacation time.
You can also use your medical payments to help pay for expenses like prescriptions and medical supplies that are needed for your recovery which might not be covered under any other policy.
How do I use it?
Hopefully you will never have to use your medical payments coverage. But when the time comes around, it is easy! When you call your insurance company to report the claim, just tell your adjustor that you would like to use your med-pay coverage. Most of the time it is a simple and sending your company copies of bills or receipts. Then they send the payment out!
Med-pay or medical payments coverage can be a great thing to have if you are in an accident. Though, not every driver needs med-pay and can save some money each month by cancelling their medical payments coverage.