Is Medical Payments Coverage worth it?

Overview: Medical Payments Coverage (Med Pay) is an optional auto insurance add-on (in most states) that helps pay for medical bills after an accident, regardless of fault. Unlike required liability coverage — which pays for injuries you cause to others, Med Pay covers you and your passengers, potentially providing prompt payment for accident-related medical expenses and helping fill potential gaps left by health insurance. Med Pay involves an additional cost, and whether it’s worth it depends on your financial situation, health insurance and the level of protection you want for yourself and others in your car.

Unlike your regular health insurance, Medical Payments Coverage auto insurance means you may get help with crash-related medical bills, including ambulance, hospital visits, surgeries, dental work or chiropractic care, up to your policy limit. This is important if your health insurance leaves gaps or won't pay for certain treatments after an auto accident. People may wonder: "How much Medical Payments Coverage do I need?" The right amount depends on your health plan details and who usually rides with you. "Is Medical Payments Coverage necessary?" While not required, Med Pay may add a layer of security.

The key benefits of Med Pay coverage

Below is a table highlighting the main benefits of Medical Payments Coverage:

Let’s explore each benefit in more detail.

Benefit 1: It may cost less than you think

One of the biggest advantages of Medical Payments Coverage is its potential affordability. In many cases, adding Med Pay to your policy may only raise your premium by a few dollars per month. Given that medical bills after a car accident can run into the thousands, this small extra cost could be easy to justify.

Benefit 2: Helps pay bills quicker

Medical Payments Coverage starts paying for eligible medical bills after a covered crash. There is usually no Med Pay deductible, so you don't have to pay a certain amount out of your own pocket before your insurance helps. There are also no Med Pay co-pays — your coverage may pay 100% of eligible medical expenses up to your policy limit.

This is different from many health insurance plans, which often have deductibles and co-pays. Imagine your health plan has a $1,000 deductible and you are hurt in a car accident with $800 in doctor bills. Without Med Pay, you might have to pay that $800 yourself. With Med Pay, your covered expenses could be paid, potentially saving you time, money and stress.

Benefit 3: Helps fill potential gaps your health insurance might have

Health insurance is designed to help with medical costs, but it does not always cover everything. Med Pay can help fill in some important gaps by:

• Covering health insurance deductibles and co-pays for car accident injuries.
• Helping pay for medical services your health plan may not, such as ambulance rides, emergency room fees, dental work caused by a crash or chiropractic treatments.
• In some severe cases, covering funeral expenses.

Benefit 4: Helps protect you and your passengers

Med Pay does more than just help you — it also helps protect your passengers. If you are driving and get into an accident, Med Pay can help cover costs for you and passengers riding with you, regardless of who caused the accident.

When you ask, "Is Medical Payments Coverage necessary?" remember that liability insurance covers others if you hurt them while driving, but it does not pay for your own injuries and may not cover those of your passengers. Med Pay fills this important gap by paying medical bills up to the amount you choose.

Med Pay also helps provide protection beyond your own vehicle. It can help with medical costs if you or resident relatives living with you are hit by a car as pedestrians, or if you’re injured while riding in someone else’s car.

Benefit 5: May reduce hassle in the aftermath of a car accident

Car accidents are stressful enough without worrying about who pays the bills. Medical Payments Coverage pays eligible medical expenses quickly, without waiting for the insurance companies to decide who is at fault. It can also help avoid delays that sometimes happen while health insurance claims are reviewed.

Med Pay can help you and your passengers access care after an accident. It may reduce paperwork and delays, allowing you to focus more on your recovery.

How much Medical Payments Coverage do I need?

Most insurance companies offer several Med Pay coverage amounts, generally from $1,000 up to $10,000 or more. To know how much Medical Payments Coverage you need, review your health insurance plan. If your health policy has high deductibles, co-pays or doesn't cover things like ambulance rides, you may want a higher Med Pay limit. If you drive with passengers often (family, friends, coworkers), having extra coverage helps protect everyone. Asking yourself “Is Med Pay worth it for me?” is the best way to decide based on your personal risks. If you’re unsure about the right amount for your situation, your State Farm agent can help you review your options and choose coverage that helps fit your needs.

Who should consider Med Pay?

Med Pay may be worthwhile if:

• Your health insurance leaves you paying high deductibles and co-pay after a car accident.
• You frequently have passengers in your car you want to help protect. (Note: Standard coverage does not extend to rideshare activities like Uber or Lyft unless you have a TNC endorsement.)
• You want your medical bills paid without waiting for investigations into who caused the crash.
• You bike or walk near traffic and want coverage if you’re hit.

If these situations sound familiar, you should ask your provider “How much Med Pay should I have?” Choosing enough to match or exceed your health plan’s deductible or expenses for an average accident can help protect your finances.

Is Medical Payments Coverage worth it?

It may be. The small extra expense on your auto insurance Medical Payments policy can provide many benefits in emergencies. Med Pay can help cover medical expenses for you and your passengers, potentially easing the burden of large upfront bills. Talk to your insurance agent to review your needs and options so you can choose the right coverage for your situation.

You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.