What is "Med Pay"?
I am often asked specific questions about car insurance coverages. I thought it would be a great idea to "blog" about certain coverages in an effort to help policy holders better understand what their policy covers or doesn't cover. I think it is very important to understand your policy now, not after you've had an accident. Today's topic is Medical Expense Coverage.
What is Medical Expense Coverage (often referred to as "Med Pay")? Medical Expense Coverage is often confused with Bodily Injury Coverage. Bodily Injury Coverage will only pay for the other party's medical expenses should you be found legally responsible for the accident. It will not provide coverage for you or your passengers.
Medical Expense Coverage will cover you and your passengers' reasonable and necessary medical costs in the event of a car accident. It will pay for these costs regardless of who is at fault in the accident. The coverage is subject to the per accident limit that is set on your policy. If you have a $10,000 limit for example, each person will have up to $10,000 of coverage for medical expenses resulting from the accident. Under Virginia law, Medical Expense Coverage is "stackable". This means that the limit for this coverage is multiplied by the number of cars insured on the policy, up to four cars. For example, if you have a $10,000 Medical Expense limit and insure three cars on the policy you have a limit of $30,000.
Medical Expense Coverage is an optional coverage. A lot of people assume that this coverage isn't necessary if they have health insurance that will pay for medical expenses due to a car accident. Although health insurance may pay for these medical expenses, most health plans carry high deductibles and will not cover your passengers' injuries.
Medical Expense Coverage will usually pay for the following:
* Ambulance Fees
* EMT Expenses
* Hospital visit/stay
* Surgical Expenses
* Health Insurance Deductibles
* Nursing Services
* Funeral Expenses (God forbid)
Lastly, Medical Expense Coverage will follow you in the event that you are injured in a car accident in someone elses car. If that person does not have Medical Expense Coverage then your policy limits would apply. If they do have the coverage, then your policy would provide excess coverage over and above their limits if needed. This is important to remember especially if you rideshare as a passenger or driver. I hope this blog helps answer any questions you may have had about Medical Expense Coverage or "Med-Pay". As always, it is a good idea to consult with your Insurance Agent and discuss what is best for you and your family.
Questions? Call us at 540-665-0911.