Health Insurance and MedPay Play Well Together

If you’ve purchased auto insurance, and you’ve declined the option of medical payments coverage (MedPay), or selected the bare minimum because you have health insurance, you may want to discuss the issue with your insurance advisor.

Your health insurance may be comprehensive, but when it comes to injuries sustained in an auto accident, health insurance and MedPay offer a one-two punch that works to your benefit. Some states require MedPay, but whether legally required or not, here are a few ways MedPay coverage can dovetail with personal health insurance.

Medical payments coverage: Medical payments coverage on your auto insurance policy covers medical expenses for you and passengers in your vehicle if injured in a car accident, regardless of fault or who was driving.

MedPay works as secondary insurance: Like all policies, health insurance policies have caps on how much they’ll pay out. With MedPay coverage on your auto insurance policy, if you reach your health insurance policy’s maximum payout, MedPay can kick in as secondary insurance. It can also be used towards your health insurance policy’s co-payments, and MedPay will cover items not offered by health insurance, such as

  • loss of income due to injuries from a car accident;
  • replacement services if you’re severely injured in a car accident and can’t do things like household chores or day-to-day activities.

Insurance gaps: MedPay fills health insurance policy gaps. Some health insurance policies may not pay for any medical expenses related to auto accidents. MedPay will cover you if this should happen, and it also covers your passengers, which health insurance policies don’t under most circumstances.

Limits apply to passengers: Additionally, the MedPay limit on your auto policy applies to you and all passengers. If, for example, your MedPay limit is $1,000, and you and two other passengers are injured in an accident in your car, each person has $1,000 in MedPay coverage.