Although you’re carrying the minimum auto insurance required by law, it’s often a pretty good idea to look into optional coverages, too. And, should you already have additional coverages, you may believe you’re completely protected with full coverage car insurance. But, you might be in for a surprise. Actually, the term “full coverage” refers to a combination of the state –required liability or no-fault car insurance along with both collision and comprehensive car insurance.
One of the optional coverages you may want to consider is Medical Payments Insurance or MedPay Insurance as it is sometimes called. Why MedPay Insurance? Because the coverage protects you regardless of who caused the accident by paying for medical expenses you and any passenger in your vehicle incur as a result of injuries suffered during an accident or auto-related incident.
Auto insurance in Illinois doesn’t require Medical Payments Insurance but, since it’s one of the optional types of car insurance available to protect you, your family, your employees and other passengers in your car, it could be an important coverage to consider. However, while MedPay is optional in Illinois, it may be mandatory coverage in some states and may not even be available in other states or under certain situations.
Should you decide that Medical Payments coverage is right for you; your insurer will ask you to select a limit for your coverage, which determines the maximum amount your insurance company will pay for each person involved in an accident.
To help explain how Medical Payments Coverage works, below are two examples:
Let’s say you’re safely driving in your lane when an out-of-control pickup truck runs you off the road. While your car looks no worse for wear, your arm really hurts after hitting the steering wheel. Meanwhile, your wife, who was riding with you, hit her forehead on the side window and now has an ugly bump and a bad headache as a result of the rough ride.
If you happen to have chosen Medical Payments coverage with a $2,000 limit, your insurance would pay the $1,000 charge to have your arm x-rayed as well as the $750 for your wife’s doctor visit. Because each of your expenses was less than your $2,000 per-person limit, Medical Payments Insurance would cover your medical costs.
In this scenario, your young daughter accidentally slams the car door on your hand. Luckily, you have Medical Payments coverage with a $1,000 limit.
Your total bill for an x-ray and cast comes out to $1,500. MedPay will cover $1,000 of the bill, but you’ll be responsible for the remaining $500.
As with most coverages, Medical Payments Insurance includes certain exceptions and restrictions. Case in point, in order to purchase the coverage, you must also select either Liability insurance or Contingent Liability insurance. Furthermore, the following restrictions also apply:
- MedPay limits must be the same for all vehicles on a multi-vehicle policy.
- In some states, if you select Medical Payments coverage on one vehicle, you must select Medical Payments coverage for all of your vehicles insured on the policy.
Be aware that Medical Payments coverage is available only for vehicles and is not applicable to trailers or similar attached equipment. In addition, Medical Payments coverage will not be in force as related to a person who is injured during the course of employment when worker’s compensation is involved.
Always consider going beyond the minimum state-mandated coverages. The extra protection can help pay for much more than your basic insurance will.
By shopping for several auto insurance quotes, you could save enough money to get additional coverages such as Medical Payments Insurance. So, make sure you’re getting the best rate on your car insurance. Why not get a free car insurance quote today?
Are you willing to pay for injuries out-of-pocket or do you have optional Medical Payments coverage?