Med Pay Coverage – Pays For Medical Bills Irregardless Of Fault
Depending on your state’s insurance laws, your car insurance may contain a provision that provides for payment of your medical expenses and those of your passenger(s) that were injured and which directly resulted from the subject car accident. This is commonly called Med Pay insurance and is purchased by the insured for an additional premium.
Med Pay will cover all medical costs, up to the Med Pay amount purchased irregardless of which party was at fault. Only injuries caused directly by the accident are covered by Med Pay. The sole purpose of Med Pay is the payment of medical bills and expressly excludes property damage and the injuries suffered by non occupants.
Med Pay Limits
Med Pay coverage limits are usually found in increments of $5,000 through $25,000. It is not intended to be your primary health care insurance. It is intended to provide the insured driver and his passenger(s) with immediate access to payment of medical bills arising out of the personal injury accident.
It is important to point out that Med Pay is not intended to be a replacement for health insurance. Med Pay coverage is strictly limited to injuries that occur during the auto accident and almost always has a beneifit limit of $25,000.
Bad Faith Denial Of Med Pay Benefits
Since Med Pay is a policy benefit the insured paid for, the insurance company must act in good faith and fair dealing with respect to payment of the benefits owed to their insured. This can arise when the insurance company unfairly contends the injury for which Med Pay coverage applies was not the result of the subject accident but was pre-existing and/or unrelated. This is known as bad faith. Should you be denied under Med Pay, it may constitute unfair insurance claims practices and entitle you to recover damages. Consult with an experienced personal injury attorney if you believe you have been unfairly denied the benefits of your insurance policy.
PIP Coverage (Personal Injury Protections)
PIP coverage is an added extension to your car insurance and covers not only medical expenses but also lost wages. It is not offered in every state. PIP coverage is usually part of a states “No Fault” insurance system rather then comparative fault insurance systems which other states follow.
Med Pay premiums are not expensive and is usually a good idea to consider purchasing. Speak with your insurance agent for further details.