After an auto accident, a million thoughts might be rushing through your head from vehicle damages to your medical expenses. In such a crisis, the last thing you want to be worrying about is your auto insurance coverage. While navigating the world of covered accidents might seem complicated, here at IIA we aim to make things simple. Medical payments coverage (MedPay) and personal injury protection (PIP coverage) are both no-fault insurance coverages that can help pay for the injured parties' expenses post-accident. These two coverages each offer a host of unique benefits and exclusions. Depending on your state of residence and coverage needs, you may choose PIP or MedPay coverage.
Read on to discover the differences between personal injury protection vs medical payments coverage.
What is personal injury protection (PIP)?
Personal injury protection, or PIP coverage is an additional auto insurance coverage that can help cover medical expenses resulting from an accident. PIP can cover an array of auto insurance medical expenses including physical and occupational therapy, psychiatric services, rehabilitation, and other professional health services. PIP coverage may also include compensation for wages, death benefits, and other reasonable non-medical or work-related losses. This type of add-on offers coverage that goes beyond standard medical bills. In addition, PIP coverage tends to be available immediately after an accident.
PIP policies can vary greatly, so it’s important to speak to your provider to determine the limits and exclusions of your coverage. Depending on what state you live in, PIP coverage could be mandatory or not available at all.
What is medical payments coverage (MedPay)?
Wondering what is MedPay? MedPay is another additional coverage that may cover your expenses for medical, surgical, dental, and chiropractic treatments post-accident. This type of coverage is often limited to ‘reasonable’ medical expenses that result from an accident. MedPay is considered more limited than PIP and does not include coverage for lost wages or survivor’s loss benefits.
While MedPay coverage is optional in all but two states, it does carry many benefits including:
- The ability to pay costs quickly
- Coverage of medical expenses for the insured, other drivers, and members of the insured’s household and passengers
- Possible coverage if you are a pedestrian, biker, or even public bus rider who gets injured during an accident
- It typically has no deductible or copay
Key differences between medical payment coverage (MedPay) and personal injury protection (PIP) coverage
So, in the case of personal injury protection vs medical payments, how do these two coverages differ? MedPay and PIP each offer a different scope of coverage, with PIP offering more benefits between the two. If you reside in a no-fault state, you will likely be required to obtain PIP coverage. State requirements for PIP coverage can range from a low of $2,500 per accident to unlimited medical expenses and permanent injury benefits of $250,000. MedPay coverage is only mandatory in the states of Maine, New Hampshire, and Pennsylvania. In all other states, MedPay coverage is deemed optional.
Policy limits and premiums
MedPay coverage is generally more limited than PIP. MedPay premiums tend to be relatively affordable, adding around $5 to $30 to your premium. Because the cost of PIP coverage between states can vary greatly, so can your premium. States like Delaware, Florida, Maryland, New Jersey, and Michigan generally have significantly higher premium costs. Overall, policyholders can expect to pay an additional 15-20% of the total cost of their auto policy for PIP coverage.
Are MedPay and PIP required?
Currently, MedPay is only required in three states (Maine, New Hampshire, and Pennsylvania). PIP coverage is required in all no-fault states like Florida, Michigan, New Jersey, New York, and Pennsylvania and is optional in other states. The only two tort states that require PIP coverage are Delaware and Oregon.
Do I need MedPay or PIP if I have health insurance?
Many drivers might weigh the pros and cons of MedPay and PIP if they already have health insurance. While MedPay and PIP coverage can seem redundant if you are covered by health insurance, these additional coverages can be beneficial. Health insurance has limits and if your health insurance policy has a high deductible, MedPay coverage could be advantageous. Furthermore, your health insurance will not cover other passengers' injuries if you have an accident. If you live in a no-fault state, you will be obligated to purchase PIP and this additional coverage offers benefits beyond doctor visits. PIP coverage may help provide financial protection against lost income and even help pay for your childcare and household expenses if your injuries make it impossible to carry out these tasks.
How to add MedPay or PIP to your auto insurance policy
Contact an IIA agent to discuss adding MedPay or PIP to your auto insurance policy.
Interested in adding MedPay or PIP to your existing auto policy? Don’t be left scrambling in the wake of an accident, contact your trusted IIA agent today to discuss your coverage options.
Health, financial security, and peace of mind are all top priorities for the careful driver. PIP and MedPay both offer additional coverage that can help you plan for the unexpected. Depending on your budget, medical needs, risk tolerance, and state requirements you may opt for one over the other.
Curious about uncovering the coverage that is right for you? Evaluate your priorities and reach out to IIA at 1-855-478-3705 for a free quote today!