What is Medical Payments or PIP Coverage on my Auto Policy?

Ever look at your Auto Policy and wonder what is this?  Well, you are amongst many other insureds who really are confused on what this coverage is and how it benefits you.

Medical Payments Coverage can assist in covering medical expenses or funeral expenses of covered drivers and passengers after an accident regardless of fault.  In most states this is an option available to add to your insurance policy.

In addition to funeral expenses; a few scenarios where medical payments coverage may kick in to help:

  • passengers are hurt while you or another covered member is driving
  • you are the passenger in another person’s vehicle and get hurt
  • should you as the covered person get struck by a car while walking/cycling
  • dental care after an accident
  • extended nursing service or hospitalization while rehabilitating
  • prosthetic limbs

Now by having PIP or Personal Injury Protection coverage, this can assist with the same things covered by Medical Payments; however, it can extend to wage compensation for any missed work due to an accident.  PIP limits are generally higher than Medical Payments, but just because you have PIP coverage doesn’t mean you can’t have the Medical Payments coverage as well.  By having both, should you exceed your limits on PIP after an incident, the medical payments coverage can fill in the gap between your PIP limits and actual medical fees up to the limits of your medical payments coverage.

Whats important to consider while you are building your car insurance policy is your current Health Insurance plan.  If you don’t have a health insurance plan, you would definitely want to add these coverages to your auto policy in the event of an accident you would have protection financially.  Should you have a good, reliable health plan, you might not need PIP or Medical Payments.  Always check the specifics of your health plan or work closely with your agent in order to determine if these benefits would assist you or not.

There are some states that do REQUIRE either Medical Payments or PIP coverage on your auto policy.  Ask your agent if this applies to you or not.

Always remember your best way of finding what coverages are right for you, is by talking closely with your agent and building a relationship with he/she as your needs do change regularly!

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