Everything you ever wanted to know about medical payments and Personal Injury COVERAGE (PIP).

Medical payments can offer you extra peace of mind, covering some of the costs of medical treatment related to an accident.

The coverage does have a few in's and out's, however, and you may feel confused about how it works and whether you need it. Here are a few pointers, and hey if you have additional questions. I know a guy! 

What is "medical payments" coverage?

Medical payments (sometimes called “med-pay”) covers hospital bills and funeral expenses, up to your chosen limit, if you’re in an accident. Your insurance company pays regardless of who is determined to be at fault (responsible). It even covers your passengers at the time of the accident.

Medical payments are similar to Personal Injury Protection (PIP) coverage, which is offered in about 15 states, like Texas! However, unlike PIP, medical payments will not reimburse for lost wages.

Do I need medical payments coverage if I have health insurance?

Medical payments limits (the “limit” is the maximum amount of money you can expect to receive for a claim) vary by state. Typically, however, it’s $10,000 or less. So, the coverage is best used as a supplement for your primary health or life insurance. Medical Payments could come in handy for any deductibles, co-payments, or out of pocket expenses you incur related to medical treatment following an accident.

Interestingly, your medical payments coverage could apply if you’re struck by a car while walking or bicycling.

What if I’m still unsure?

If you still have questions, or are unsure whether medical payments coverage is right for you, contact us or shoot us an email. We are highly highly trained professionals who know the in's and out's of auto insurance. We can help you choose the coverage levels you need to protect yourself, your family, and your car.

Now for our neighbor the the west, Texas they also have PIP Coverage OR Personal Injury Protection

PIP does tend to be among the more confusing for our clients to understand. Here are a few points that we think could help. 

What is Personal Injury Protection?

Personal Injury Protection, or “PIP,” is one of the coverages on a personal auto policy. It reimburses you for costs related to the treatment of injuries you receive in an accident, up to a chosen dollar limit. It also covers any passengers in your car at the time of the accident. In some states, PIP may cover things like lost wages and rehabilitation costs. 

What makes the coverage unusual is that it applies no matter who caused the accident. So, you may start to be reimbursed for medical bills even before the insurance companies determine who is liable.

PIP is primary. This means that any health insurance you have — whether private or government-sponsored — will only “kick in” once the PIP limit is reached.

Do I need PIP?

PIP is required in states that have no-fault or tort auto insurance laws. About a third of states have these laws in effect. The coverage is optional in a handful of other states. We can always explain your state requirements if you have additional questions.

How much PIP should I buy?

We always recommending asking yourself the following questions when considering PIP and selecting coverage limits:

• How good is my personal health insurance? 
  If you have low-deductible/high quality health insurance, you could consider lower levels of PIP.

• Do I have life insurance?
  If you have a family but don’t have life insurance, know that PIP could help them cover expenses if you’re in a fatal accident.

• How would I make up for lost wages if I can’t work?
  If you’re unable to work due to an injury from an auto accident, PIP could help make up for lost wages.

What if I’m still unsure?

If you still have questions, or are unsure how much PIP is right for you, contact us! We are always here to help and will be just a call, click, or text away.