In some states, you are required to have auto liability insurance, but this only covers the expenses for the people whom you hurt in a collision that you caused. You and your passengers will also have medical bills, but you may not have money to pay these expenses. This scenario is what personal injury protection and medical payments were designed to confront.
What Is Auto Insurance?
Auto insurance is a contract between you and an insurance company. In this contract, you agree to pay premiums to the company in exchange for protection from the financial losses that result from a car collision or other damages.
What Is Personal Injury Protection in Auto Insurance?
Personal Injury Protection or PIP insurance is auto insurance that is also known as “no-fault insurance.” That is because the policy pays your medical bills and lost wages if you are unable to work, or funeral expenses for you and your passengers. It does not matter who caused the collision, so you receive these benefits even if you have a greater percentage of blame for the crash.
What PIP Insurance Covers
PIP insurance covers you in a wide range of circumstances. You don’t have to be driving to use this coverage. For example, it may pay the bills if you are hit by a car while walking. It will pay your medical bills and those of your passengers if you were involved in a collision no matter who was at fault. It may also pay the deductible for your health insurance plan. If you cannot work because of your accident, PIP insurance covers your lost wages. If you need to hire temporary help for your business, PIP insurance also helps you in this area.
In the event that you pass away, your PIP coverage will pay your funeral expenses, cremation expenses or burial expenses. Your surviving dependents may even be able to receive the income they lost after losing their main breadwinner.
Lastly, PIP insurance may pay for you to hire someone to perform the duties that you performed before the collision. These include child care and housecleaning services.
What Is MedPay in Auto Insurance?
MedPay is “Medical Payments Coverage,” but it is not available in every state. It is another policy that will pay your medical bills and your passengers’ medical bills in the event of a car collision no matter which driver is responsible for causing it. It is optional coverage where it is available.
MedPay is an option for people who would be unable to pay their medical expenses and those of their passengers in the event of a collision. It may also be a good choice to make if you have health insurance because it will pay your out-of-pocket expenses.
What MedPay Covers
MedPay covers the following:
- Stays or visits to the hospital
- Appointments with your doctors
- Fees for ambulance or EMT services
- Nursing services
- The deductible and copayments for your health insurance
- X-rays, surgery and dental procedures
- Funeral expenses
Personal Injury Protection or Medical Payments may be right for you.