What Is Medical Payment Coverage?

Medical payments coverage auto insurance (AKA called MedPay or Medical Expense Coverage) is an optional coverage that pays for medical expenses after a car accident, regardless of fault. It can cover you, your passengers, and even a pedestrian injured in a crash involving your vehicle. This auto insurance benefit steps in to pay medical bills, funeral expenses, or emergency care when injuries occur, whether you’re driving, riding, or walking.

In this article, we’ll break down how medical payments coverage works, what it covers and doesn’t cover, when it’s useful, how much you may need, and how it compares with personal injury protection (PIP) and bodily injury liability. By the end, you’ll clearly understand if medical payments coverage is worth adding to your auto insurance policy.

How Does Medical Payments Coverage Work?

As the term suggests, MedPay covers all the medical expenses after an auto accident. It doesn’t matter who caused it. It will be effective right after the crash. So, once you receive medical treatment, your insurer can reimburse or directly pay those medical bills including hospital visits, ambulance fee, and surgery costs. There’s no deductible to meet, and the coverage applies to you, your passengers, or even if you’re injured as a pedestrian. 
 
It's simple. You choose a coverage limit (say $5,000 or $10,000), and your insurance pays up to that amount for covered injury related costs. Even if you’re in a no-fault insurance state and carry broader coverage like PIP, you may not be eligible for medical expenses if you were driving under the influence of drugs or alcohol. However, MedPay may still cover you. It helps fill the gap where health insurance or another driver’s liability coverage might fall short.

Practical Example of MedPay Car Insurance in Action

Let’s say Adam lives in Michigan, a no-fault state where drivers are required to carry Personal Injury Protection (PIP). Adam opts for the lowest PIP coverage limit of $50,000. One day, while driving on a busy road, he crashes into another SUV, resulting in severe injuries and medical bills totaling $85,000. Since his PIP coverage only pays up to $50,000, Adam is responsible for the remaining $35,000 out of pocket.  
 
To avoid facing a similar financial burden in the future, Adam can purchase a MedPay add-on. It’s relatively inexpensive and helps cover out-of-pocket medical expenses in emergency situations.

What Does Medical Payments Coverage Cover?

As has been said, MedPay pays for medical related costs after a car accident whether you’re at fault or not. It covers you, your passengers, and sometimes even pedestrians injured in the crash.

Here’s what MedPay usually covers:

• Hospital stays and doctor visits 
• Ambulance and EMT services 
• Surgery, X-rays, and rehabilitation 
• Prosthetic limbs or medical equipment 
• Dental care for accident-related injuries 
• Nursing or home care services 
• Health insurance deductible and co-pays 
• Funeral expenses if the worst happens

Do you need MedPay, liability, or PIP coverage to ensure you’re able to pay all your medical bills after an accident? Contact USA Auto today. We offer some of the cheapest rates so that you can shop affordable car insurance online even as a high-risk driver. Get your car insurance quote right away or simply call us at (866) 855-1872 if you have any questions.

What Isn’t Covered by MedPay?

MedPay strictly focuses on medical expenses. However, here’s what it doesn’t cover:

• Lost wages or childcare costs 
• Vehicle repairs or property damage 
• Pain and suffering compensation 
• Expenses exceeding your coverage limit 
• Injuries to other drivers caused by you   
  

You will need a broader protection like bodily injury liability coverage or personal injury protection (PIP) to fill the gaps.

Situations Where Medical Payments Coverage Proves Valuable

Medical Payments Coverage can make a huge difference after an automobile accident. It is supplemental to your health insurance as well as personal injury protection. 

Here are a few real life situations where it truly helps:

#Scenario 1: You’re hit by an uninsured driver
If the at-fault driver doesn’t have enough liability insurance, MedPay helps cover medical expenses for you and your passengers.  

#Scenario 2: You’re Injured as a pedestrian
Whether you’re walking or biking, if a car hits you, your MedPay coverage can pay hospital and ambulance bills.

#Scenario 3: A passenger in your car gets hurt
MedPay covers your passengers’ injury-related medical costs, even if you were at fault.

#Scenario 4: Your health insurance doesn’t cover everything
MedPay auto insurance helps with co-pays, deductibles, or treatments your health insurance won’t pay for.

#Scenario 5: You’re riding in someone else’s car or a rideshare
If an accident happens, Medical Payments Coverage can still cover medical bills no matter whose car you were in.

How Much Medical Payments Coverage Do I Need?

Choosing the right medical payments coverage limit depends on a few things:

• Your health insurance 
• Your budget 
• State requirements and PIP coverage 
• Risk level (e.g., passengers you typically carry)

Most insurer offer limits from $1,000 to $10,000, though some go higher. The best approach is to match or slightly exceed your health insurance deductible. That way MedPay can cover bills your health plan leaves behind.

However, if frequently driver with family and friends to high traffic areas where accidents happens to often, you should ensure you have a solid injury protection. In that case, choosing higher MedPay limits is a better choice.

You should also consider a higher limit if you don’t have health insurance. MedPay coverage can step in for emergency treatment, hospital stays, or rehabilitation costs that might otherwise drain your savings. Even if you’re well insured, it can still help pay co-pays, ambulance fees, or funeral expenses pretty quickly without waiting for another policy to respond.

Does My State Require Medical Payments Coverage?

MedPay is optional in nearly every state. However, if you purchase an auto insurance policy in any of the following states, you’re required to include MedPay (as of October 2025):

• Maine (Drivers must carry a minimum of $2,000 in medical payments coverage) 
• New Hampshire (Technically, car insurance isn’t required here. However, if you choose to purchase a policy, it must include MedPay) 
• Pennsylvania (Requires a minimum amount of medical benefits, which is commonly satisfied by MedPay)

It’s also noteworthy that some states don’t offer MedPay auto insurance at all because they have personal injury protection (PIP) instead. States like Florida, New York, Michigan follow no-fault laws where post-accident medical expenses are taken care of by your PIP coverage.  

However, if you live in a state that doesn’t require MedPay, it’s still worth considering. It can help cover medical bills, ambulance costs, and deductibles, your health insurance or PIP policy might not fully pay for. Always check your state’s auto insurance requirements before you decide anything.

Comparing MedPay vs. PIP vs. Bodily Injury Liability

It’s common for car insurance policyholders to feel confused about coverages like MedPay, Personal Injury Protection (PIP), and Bodily Injury (BI) Liability, since all of these kick in after an accident to help cover medical-related costs. So, for you, the following table illustrates the major differences of these protections and how they actually help in specific situations.

How Much Does MedPay Car Insurance Cost?

MedPay is one of the most affordable add-ons to auto insurance. On average, it costs around $5 to $10 per month or $60 to $120 a year. However, the rate significantly depends on the coverage limit and state laws. Based on our analysis, if you pick a $5,000 limit, it can cost you around $8 per month. On the other hand, choosing $25,000 coverage limit may cost roughly from $10 to $12 per month.

But these are only estimates. Like any car insurance coverage, the exact cost depends on a few key factors including your driving history, location, and vehicle type.

How Do I File a Claim for Medical Payments Coverage?

It's super easy to file your claim under Medical Payments Auto Insurance Coverage. As soon as you feel safe and comfortable after an accident, contact your insurance company and provide details about the incident. Submit medical records, hospital bills, and proof of treatment.

Your insurance adjuster will review everything and either reimburse you directly or pay your healthcare providers. For faster approval and payment, try keeping all copies of receipts and paperwork. Also, make sure to co-operate with the adjuster with all the necessary information and documents so that your claim is processed seamlessly.

Is Medical Payments Coverage Worth It

MedPay really worth it for most drivers. There’s no doubt about it. It’s low-cost, easy to add, and offers instant help when medical expenses strike after an accident. It’s especially valuable if you have high health insurance deductible, limited PIP coverage, or frequently drive with passengers, family members, or friends.

Having this coverage ensures you won’t delay treatment because of financial issues. Whether you’re at fault, a pedestrian, or riding in someone else’s car, it gives all the financial safety associated with medical costs which your regular auto insurance policy or health insurance might not cover.

Medical Payments Coverage FAQs

Do I have to pay the deductible for the MedPay claim?

No. One of the good thing about MedPay is that you don’t have to pay any deductible for it.

Does Med Pay cover lost wages if I’m hurt while riding a bike?

No. MedPay isn’t broader protection like PIP. It doesn’t cover lost wages.

Can I use Med Pay if I get hurt in a taxi or rideshare? 

Yes. If you’re injured while riding in a taxi or rideshare, MedPay coverage can help cover medical expenses.

Is medical payments coverage the same as health insurance? 

No. Both medical payment coverage and health insurance are different. MedPay is optional and supplemental to your health insurance that cover your medical bills only after an auto accident regardless of fault. On the other hand, health insurance is comprehensive health care plan which offer broader coverage for all the ongoing and future medical expenses.

Does Med Pay help if I’m hit while walking? 

Yes. MedPay covers you as a pedestrian if you’re injured by a vehicle.

Does auto insurance cover medical expenses?

Not always. Standard auto insurance only pays for other people’s injuries through liability bodily injury coverage if you’re at fault. To cover your own medical bills, you need MedPay or Personal Injury Protection (PIP).