Understanding Med-Pay and Why You Need It

medical payments coverageIf you are injured in an auto accident where someone else is at fault, the other person’s liability insurance will rarely pay your medical bills as you incur them. Rather, you will be reimbursed for your medical bills as part of your settlement, or if the case does not settle, as part of your jury award. This can take several months or years. Meanwhile, your healthcare provider will be seeking payment from you. Med-Pay can help by paying your medical bills as they are incurred. Read further for a better understanding of Med-Pay and why you need it.

What is Med-Pay?

Med-Pay, short for medical payment insurance, pays the medical bills resulting from an accident in which you or anyone covered by your policy was injured, regardless of who is at fault. For example, if you are in an auto accident and someone else is totally at a fault, it will pay your medical bills and the medical bills of anyone covered by your policy––which for the purpose of Med-Pay means just about any driver or passenger in your car. But, even if you were at totally at fault, it will still pay for any covered driver or passenger injured in the accident. Thus, Med-Pay is a type of “no-fault” insurance coverage.

Why You Should Have Med-Pay

Med-Pay is relatively inexpensive and can be purchased to provide anywhere from $1000 to $10,000 worth of coverage for any injury to any driver or passenger in your car that is a result of the auto accident. Keep in mind, however, that although some policies pay lost wages as well, this coverage only pays medical bills. It does not pay for pain and suffering.


There are a couple additional things to know about Med-Pay. First, while in some states you are required to purchase a minimum amount of Med-Pay coverage, in others it is fully optional. Secondly, if another driver is at fault for the accident and you are  eventually successful in pursuing a claim against the at-fault driver and receive money for your medical bill, you do not have to reimburse your Med-Pay for any bills it paid while you were pursuing your case.


In fact is is advisable, that if you have other health insurance, you first exhaust your Med-Pay coverage before submitting a claim to your regular health insurance company. This is because most health care providers enjoy the right to be reimbursed if you eventually settle your claim. So, once you get paid by the at-fault driver, you have to repay your health insurance provider for whatever medical bills they paid. Med-Pay does not have this “right of subrogation”. Therefore, you should use your Med-Pay first, then submit the remaining bills to your health care insurance. This way, you pay back less and The less and keep more of the settlement for yourself.

Have Questions? Get Answers!

Personal injury lawyers handle personal injury cases that involve both medpay and liability payments to people injured in accidents. If you or someone you care about has been injured, call a personal injury attorney to answer any questions you may have regarding being compensated for your injuries and losses.

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