What is Medical Payments Coverage?

Overview: Medical Payments Coverage (MPC), often called Med Pay, is an optional coverage that can be added to auto insurance policies to help cover medical expenses for you and your passengers after a car accident, regardless of who was at fault. Med Pay helps provide protection against emergency medical costs and can help fill gaps left by health insurance deductibles or limits. This coverage applies to you, your family members and passengers in your vehicle.

What is Med Pay?

If you’re shopping for car insurance or reviewing your current policy, you’ve probably heard the term “Medical Payments Coverage” or “Med Pay.” But what is Medical Payments Coverage? Med Pay is an optional part of car insurance that helps pay for medical bills for you and your passengers after a car crash, no matter who was at fault. Med Pay is not available in every state. State Farm® offers Medical Payments Coverage only where permitted by state law. In some states, a similar type of coverage called Personal Injury Protection (PIP) is required instead. Unlike liability coverage (which pays for damage and injuries you cause to others), Med Pay focuses on you and the people in your car. In most states, Med Pay isn’t required by law, but it’s easy to add to your policy if offered in your state.

Who does Medical Payments Coverage help protect?

Med Pay explained simply: It helps protect the people most important to you in and around your car.

• You — the policyholder is protected whether you’re driving your insured car or even a friend’s car.
• Family members — coverage often extends to relatives who live with you, including situations where they are injured as passengers, drivers or in some cases as pedestrians.
• Passengers — Med Pay usually covers any passengers riding with you when a crash happens.

How does Medical Payments Coverage work?

Medical Payments Coverage generally follows a standard process. Here’s how it typically works:

1. After a covered accident, you or your passengers may be injured and receive medical bills for services such as doctor visits, hospital stays, ambulance fees, X-rays, surgeries or accident-related dental treatments.
2. You, or the medical provider, send these bills to your car insurance company.
3. Your insurer pays eligible bills — up to the coverage limit you chose — directly to you or your medical provider.

If your medical costs are higher than your Med Pay limit, the remaining expenses can be paid by your health insurance or out of pocket.

Medical Payments Coverage is designed to help cover eligible medical expenses after an accident. Unlike health insurance, Med Pay usually doesn’t require you to pay a deductible or co-pay. The coverage limit you select is the maximum amount Med Pay will pay per person, per accident.

It’s a practical way to help ensure you, your loved ones and others riding with you have some protection against unexpected medical expenses after a collision.

Benefits of adding Med Pay to your policy

Here are some benefits to consider in the case of a covered loss:

Medical Payments Coverage can be a competitively priced option for drivers and may help pay covered costs quickly. It can be especially valuable if your health insurance has high deductibles or doesn’t fully cover treatment related to an auto accident. Med Pay may also help with certain expenses, such as ambulance rides or dental injuries resulting from a covered crash, which some health plans might not include. Keep in mind that Med Pay only applies to medical costs resulting from auto accidents, as described in your policy, and is not a replacement for health insurance.

What is the difference between PIP and Med Pay?

Personal Injury Protection (PIP) and Medical Payments Coverage (Med Pay) are similar in that they both help pay medical expenses after a covered loss. However, there are key differences:

If you live in a state that requires PIP, you’ll need that type of coverage, but Med Pay can be a good supplement in other states, especially if you want quick access to help with medical bills without a deductible.

Med Pay coverage options

When buying Medical Payments Coverage as part of your auto insurance, you can choose a coverage limit — the maximum amount your insurer will pay per person for each accident. Common limits range from $1,000 to $10,000 per person, though some insurers will offer higher limits like $25,000 or even $50,000 if available in your state. The most common limit people select is $5,000, which may not be enough to cover all hospital expenses after a serious accident.

Coverage limits for Medical Payments Coverage vary, so it’s important to review your options carefully.

Is Medical Payments Coverage right for you?

Medical Payments Coverage (Med Pay) can help shield you, your family and your passengers from unexpected medical expenses after an accident. Its flexibility and immediate coverage make it a valuable addition to many auto insurance policies, particularly if your health insurance has limitations or high out-of-pocket costs.

Remember: Your insurer pays medical bills for covered injuries only up to your limit. Any costs over that amount need to be paid another way. Talk to your insurance agent to explore coverage options for you and your family.

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