Medical payments coverage is part of an auto insurance policy that will provide financial support for medical expenses. This can include the insured parties and other passengers in the vehicle at the time of the accident. Coverage also extends to the insured if they are hit by a vehicle while they are outside of their vehicle. These situations typically include pedestrians that are struck by a vehicle. In addition some policies also cover funeral expenses in the case of death from a vehicular accident.
What Types of Accidents Are Covered?
Medical payments insurance is a blanket type of coverage that pays out in all types of motor vehicle accidents. This means that even if you were at fault for the accident the insurance would still cover the claim within the parameters of the insurance policy. This can be very different than some health, auto and other accident insurance policies that require the insured to be deemed as not at fault to claim.
Levels of Medical Payments Insurance
As the consumer you will select the level of medical payments coverage you obtain when you take out your auto insurance policy. Typically whenever the auto policy is changed you can make changes to the level of additional coverage you have on the policy. Changes in the family, different uses of a vehicle or obtaining or dropping other types of life, health or accident insurance may be reasons to change the limits on your coverage.
Is Medical Payments Coverage Required?
The question as to the requirement of medical payments coverage is really variable depending on where you live. States that have no fault auto insurance typically include some form of Personal Injury Protection or PIP in the policy. In most cases PIP coverage is more extensive than basic medical payments coverage and may provide protection for lost wages, psychiatric treatment and other expenses that are related to the accident.
For insured drivers with life, health and disability insurance that existing policy may cover medical expenses in the event of a vehicle accident. Medical payments coverage can be used to cover a deductable for a health plan and can also provide additional services outside those covered by standard health insurance policies.
It is important to know your state's requirements on this particular type of insurance to provide appropriate coverage. States may require medical payments coverage through their insurance laws regardless of other insurance policies currently in place.
