Med Pay – Do I need it and what is it?
Medical payments coverage is an optional coverage through auto insurance. This coverage is for medical bills or funeral expenses related to a car accident resulting in injury or death. Some states call this coverage “personal injury protection” or PIP. Many clients that come to our firm tell us they were advised not to purchase medpay because they have AHCCCS or other health insurance. This is bad advice. Car crashes do not leave people fully compensated in most circumstances. Health insurance companies seek reimbursement for what they paid in medical bills if another driver is at-fault, some health insurers deny the claim if the collision was caused by someone else, and oftentimes there are deductibles and co-pays to manage. This is where medpay can be helpful.
Medpay is designed to cover bills if you don’t have health insurance or even if you do, it can help with the out of pocket expenses related to medical care as mentioned above. Auto insurance companies offer medpay in varying amounts: $500.00; $1,000.00; $2,500.00; $5,000.00 and more. The most common coverage amount seen in our firm is $5,000.00. We recommend purchasing medpay of $5,000.00 to help achieve the best recovery and cause the least amount of damage to your finances and credit should a collision occur.