Medical Payments vs liability coverage: What’s the difference?
What's the difference between Med Pay and liability auto insurance? Learn who's covered, when they pay and which is required vs optional.
Overview: While both Medical Payments Coverage (Med Pay) and liability coverage can help with costs resulting from a car accident, each applies to a different situation. Med Pay is an optional coverage in most states that helps pay for medical expenses for you and your passengers, regardless of fault. In some states, a similar coverage called Personal Injury Protection (PIP) may be available or required instead of Med Pay. PIP typically covers medical expenses as well as additional costs like lost wages. Liability coverage pays for injuries and damages you cause to others in an accident and is often required by law. Understanding how each works can help you decide on the right protection for yourself and others.
When searching for auto insurance, it’s important to understand how different coverage types can help protect you and your loved ones. Many drivers may wonder whether they’ll need additional funds to help pay medical expenses in the event of a crash. Bodily injury liability coverage, which is typically required by law, helps cover costs for others if you are at fault for their injuries. Med Pay can pay for injuries to occupants of your vehicle, regardless of fault. Understanding how they differ and comparing their benefits can help you make informed decisions about your auto insurance needs.
How liability coverage helps protect others if you’re at fault
Liability coverage is the part of your auto insurance policy that helps pay for damages and injuries you cause to others in a crash. Most states require drivers to carry a minimum level of liability coverage, making it a key part of being a responsible driver.
- Bodily injury liability — helps pay for medical expenses, lost wages and pain and suffering for other people who are hurt in an accident you cause. For example, if another driver or their passengers are injured, your bodily injury liability would help pay their medical bills.
- Property damage liability — helps pay to repair or replace another person’s car or property, like a mailbox or fence, if you’re at fault.
Key point: It’s important to remember that liability coverage does not pay for your medical expenses or repairs to your own vehicle after an accident you caused. Liability insurance only covers others who were affected by your actions.
How Medical Payments Coverage works: Covering you and your passengers
Medical Payments Coverage, or Med Pay, helps pay medical costs for you, your family members living with you and your passengers after a crash — regardless of who was at fault. Covered expenses may include ambulance bills, hospital visits or even funeral costs. Med Pay coverage is often offered as an optional addition to your auto insurance policy and can help cover costs quickly, without waiting for fault to be determined.
For example, if you have a fender-bender and you or your passenger need to see a doctor, your Med Pay coverage could help pay for those bills quickly.
Side-by-side comparison: Medical Payments vs liability
Here’s a table to highlight the key differences between liability vs Medical Payments coverages:
Is it required by law?
Yes (often required by state law)
Optional in most states (occasionally required)
Who does it cover?
Other people injured in an accident and their property
You and your passengers
When can it be used?
Only when you cause the crash
Regardless of who caused the crash
What does it help pay?
Others’ medical bills and property damage
Medical expenses for you and your passengers, including ambulance bills, hospital visits and, if needed, funeral costs (up to the limit purchased)
In some states, PIP is available or required instead of Med Pay. PIP often covers additional expenses, such as lost wages and essential services, beyond medical costs.
Real-life example: Bodily injury vs Medical Payments after a crash
Let’s say you accidentally rear-end another car at a stoplight. In this situation:
- Your bodily injury liability coverage — helps pay for the other driver's medical bills and any injuries their passengers have.
- Your property damage liability coverage — helps fix the other driver’s car.
- Your Med Pay coverage — (if you choose it) could help cover doctor’s visits, physical therapy or X-ray costs for you and anyone riding with you, even if the accident was your fault.
Why having both can be beneficial
Having the right mix of coverages helps protect you in different ways. Bodily injury liability insurance can help shield you from large out-of-pocket costs if you injure someone else. Med Pay coverage can be a safety net for immediate medical bills for you and your passengers, helping pay health insurance deductibles or bills for people who might not have other coverage.
By understanding the main differences between Medical Payments and liability coverage, you can build an insurance policy that fits your unique needs. To find out if Medical Payments Coverage is available in your state, talk to a licensed insurance agent who can guide you through your options.
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The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.
Please remember that the preceding descriptions contain only a general description of available coverages and are not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Coverage options may vary by state. To learn more about auto insurance coverage in your state, find a State Farm agent.
This article was drafted with the help of AI and reviewed by State Farm editors.
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