Personal injury protection (PIP), MedPay, and income loss coverage
In the event that you require medical coverage as a result of an auto accident, MedPay and personal injury protection (PIP) may help pay for medical and/or hospital bills. This coverage can work in tandem with your health insurance.
What is medical payments coverage (MedPay)?
This coverage pays the cost of necessary medical bills you and/or your passengers incur after being hurt in a car accident. It applies no matter who is at fault in the accident.
What does MedPay cover?
In addition to medical expenses, MedPay can pay for expenses that may not be covered by your health plan, such as dental treatment, professional nursing services, and prostheses.
What is personal injury protection (PIP)?
Personal injury protection (PIP) generally covers everything that MedPay covers, plus it can also cover non-medical expenses, loss of essential services*, funeral expenses, and reimburse you for lost wages related to your accident.
*Loss of essential services comes into play when the insured is unable to perform household duties or other responsibilities due to an accident and needs assistance. For example, if a mother of two young children broke both arms in an auto accident, caring for her children would be exponentially more difficult. She will most likely need to hire a nanny to help with childcare responsibilities—this would be covered under PIP up to her policy limits.
What do personal injury protection (PIP) and MedPay not cover?
PIP/MedPay don’t cover any property damage for you or anyone else involved in an accident.
Who needs personal injury protection (PIP) and MedPay?
If you have a comprehensive, low-deductible health care plan, you may find that there’s overlap between what your health insurance covers and what MedPay covers. If that’s the case, you may not need MedPay. However, if you have a high-deductible health plan (or no health insurance), opting for MedPay/PIP may prove to be the rescue you need should you find yourself in an accident with expensive medical bills to pay.
How much coverage do I need?
When choosing your coverage amounts, you want to consider the potentially high cost of medical care and compare that with how much you might be able to pay out-of-pocket or with your health insurance. If you don’t have any health insurance, you’ll probably want to choose a higher limit to help offset any out-of-pocket medical expenses you might incur from an accident.
What is income loss coverage?
Income loss coverage is an additional coverage that you can elect to add to your policy. This coverage helps to reimburse for lost income as a result of a car accident. The limit for income is $100/ week.*
*States may vary. Talk to an agent to find out more details.