What Is Medical Payments Coverage in Auto Insurance?

MedPay, also known as medical payments or medical expense coverage, is an optional protection available in most states that helps to pay eligible upfront medical expenses for you and/or your passengers if you’re involved in a car accident. 

If another driver is at-fault for the accident, their liability insurance coverage is designed to pay your medical expenses, but because those claims can take time to process, medical payments coverage can help foot the bill for your eligible care up front. 

MedPay can either reimburse policyholders and their passengers for healthcare costs or directly pay medical providers, without a deductible or copay. Without this coverage, you may have to pay some or all of your accident-related medical bills out of your own pocket. 

What is covered by medical payments auto insurance?

MedPay covers expenses like:

• Ambulance and emergency room fees.
• Doctor visits.
• Hospital stays.
• Surgical expenses.
• Dental care.
• Surgery.
• X-rays, CT scans, MRIs and other imaging.
• Medical equipment and prostheses.
• Physical therapy.
• Chiropractic care.
• Nursing services.
• Funeral expenses.

Medical payments insurance also extends to you and your family when you’re riding in someone else’s vehicle, riding a bike or walking down the street.

What the experts say

If you have health insurance, it’ll probably cover your medical expenses after an accident. There are some health policies that do not provide primary coverage for accident-related injuries, though, so be sure to read your coverage documents carefully. 

Stephanie C.

Insurance writer

What’s excluded in medical payments coverage?

Unlike personal injury protection (PIP), MedPay excludes lost wages and essential services, like grocery delivery or lawn care.

MedPay only covers expenses up to your chosen policy limit. Your insurer may also have non-standard exclusions, such as expenses incurred more than one year after your accident. 

Am I required to buy medical payments coverage?

MedPay coverage is optional in most states, but drivers in Maine and New Hampshire are generally required to purchase it as part of their personal auto policy. 

• In Maine, policyowners must purchase at least $2,000 per person in MedPay coverage.
• In New Hampshire, drivers are required to purchase at least $1,000 in medical payments coverage.

Drivers in most other states have the option to purchase or decline this added protection. Not all insurers offer MedPay to drivers in all areas, so be sure to shop around if you want this type of protection.

How much medical payments coverage do I need?

Maine and New Hampshire drivers must purchase at least their state’s minimum amount of required coverage. Other drivers can purchase as much coverage as their insurer offers.

Here are a few questions to help you determine whether to add MedPay to your policy, and how much you may need:

• Do you have active health insurance?
• What is your health insurance deductible and annual out-of-pocket maximum?
• If you don’t have health insurance, do you have adequate savings to cover upfront medical expenses?
• If you do have health insurance, can you afford to pay your deductible or annual maximum out-of-pocket costs, potentially all at once?

Insurers commonly offer MedPay limits ranging from $1,000 to $10,000 or more. Consider choosing a limit that at least covers your annual health insurance deductible or out-of-pocket maximum. If you don’t have health insurance, a higher limit can offer better protection against unexpected medical bills.

How does MedPay coverage work?

A claim must be filed to use your MedPay coverage, either by you or the other driver.

Then, notify your insurance company that you’ve been injured in an accident to activate your MedPay coverage. You may be asked to provide information about the accident, a copy of the police report, and in some cases, sign a release form before benefits can be disbursed.

Once your adjuster has all relevant information, you can start filing against your coverage. If you have already incurred eligible expenses, like a copay or the cost of prescription medication, you can submit those receipts to your insurance company. The adjuster assigned to your claim will review the information, request additional info if necessary, and issue reimbursement payments once approved.

Certain medical providers may offer to bill your auto insurance company directly. Once approved, your insurer will issue a payment directly to the medical office, up to your total coverage limit.