What is Medical Payments Coverage? How Does it Work?
Your car insurance medical payments coverage helps pay for medical and funeral expenses after a car accident.
Also known as MedPay, this coverage protects you and your passengers, even if you cause the accident.
Most home and renters insurance policies also come with medical payments coverage, but it works differently from your car insurance coverage because it doesn't pay your medical bills. Instead, it only covers the medical expenses of guests or workers hurt on your property.
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What does car insurance medical payments coverage pay for?
After a car accident, your car insurance policy's medical payments coverage can pay for several types of medical expenses. These typically include:
- EMT and ambulance fees
- Hospital visits and stays
- Doctor visits
- Surgery and X-rays
- Professional nursing services and care
- Prosthetic limbs
- Dental procedures needed as a result of an accident
- Funeral costs
Your auto insurance medical payments coverage also pays for medical care if you're injured in an accident while walking, riding a bicycle, riding in a friend's car or using public transportation.
How do medical payments on auto insurance work?
If you or your passengers are hurt in an accident and you have medical payments coverage, you can file a claim with your car insurance company.
MedPay works together with your health insurance, so how your claim is handled depends on whether your health insurance or car insurance is considered the "primary coverage" by your car insurance company. This can differ by both company and state.
For example, Geico representatives told ValuePenguin editors the company considers health insurance the primary coverage. On the other hand, Progressive and State Farm representatives said MedPay would pay out first. You should check your policy to be sure.
Coverage limits on MedPay are usually low. It usually only covers immediate medical care, minor injuries, or a part of your healthcare deductible. It can also help with funeral expenses following an accident.
Do I need car insurance medical payments coverage?
If you live in Maine, New Hampshire or Pennsylvania, you must have medical payments or medical benefits coverage to drive legally.
Otherwise, if you need medical payments coverage depends on the type of health insurance you have and whether your car insurance includes personal injury protection (PIP).
Health insurance vs. medical payments
Health insurance typically pays for medical expenses, but some policies exclude injuries related to a car accident. For example, your health insurance may not pay for injuries after an accident while you're driving for work.
This can leave you with expensive medical bills if you're hurt in an accident you cause. Medical payments coverage through your car insurance could help pay for those expenses and give you peace of mind.
If your health insurance covers car accidents, you'd likely have to pay a deductible or a copay before your insurance pays for anything. MedPay can reimburse you for those costs. But you'll have to check if it's worth paying for MedPay in addition to your health insurance policy. If you don't have a deductible and your health insurance covers car accidents, then you don't need MedPay.
PIP vs. medical payments
Personal injury protection (PIP) covers health costs, psychiatric care, rehab and lost wages after an accident, regardless of whose fault it is. There are 15 states that require PIP coverage.
While personal injury protection and medical payments coverage can overlap, it may make sense to have both if you live in a state with low PIP requirements.
For example, Utah only requires $3,000 of personal injury protection. That may not be enough to cover serious or ongoing medical issues after a crash. If you have both types of policies, then you would use PIP to cover rehab costs and lost wages and MedPay can reimburse you for hospital and doctor visits.
People living in Minnesota, New York, North Dakota and Oregon can't add medical payments coverage to their auto insurance policies. That's because these states require personal injury protection (PIP), which covers many of the same things as MedPay.
How much does medical payments car insurance cost?
Medical payments coverage can cost between $1 and $12 per month to add to your car insurance policy, depending on your company and how much coverage you want.
For example, the average cost of $1,000 of medical payments coverage is only $3 per month, while $10,000 of coverage costs around $8 per month.
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Monthly cost of MedPay by company and coverage amount
Company | $1k | $2.5k | $5k | $10k |
|---|---|---|---|---|
| Progressive | $1 | $1 | $2 | $3 |
| Geico | $2 | $4 | $6 | $9 |
| American Family | $2 | $4 | $5 | $7 |
| Travelers | $3 | $6 | $6 | $8 |
| State Farm | $3 | $6 | $7 | $9 |
Rates are for medical payments coverage only. This is in addition to your regular monthly car insurance bill.
What is medical payments coverage for homeowners and renters insurance?
Homeowners insurance medical payments coverage helps pay the medical bills of guests or workers who get hurt or sick on your property, regardless of whose fault it is.
Home insurance medical payments coverage is sometimes called "coverage f". This coverage works the same way for renters insurance.
For example, if you're hosting a holiday party and a guest slips on your icy steps, breaking their ankle, your medical payments coverage will cover the cost of their emergency room visit and ongoing medical bills, up to the limit you choose.
Medical payments coverage also pays for accidents that happen away from your home. So if your dog bites someone at the park, your medical payments coverage can help pay their medical bills, too.
What does homeowners insurance medical payments cover?
- Emergency room visits
- Hospital bills
- Ambulance rides
- X-rays
- Diagnostic tests
- Doctor fees
- Surgical fees
- Emergency dental care
- Physical therapy
- Prosthetic devices
- Funeral expenses
What's not covered by home insurance medical payments?
- Your own medical bills
- Injuries to anyone living in your home
- Injuries related to a business you run out of your home
- Intentional injuries if you're in a fight or use physical force against someone
- Injuries that result from illegal activities, like drug use
- Lawsuits
- War, nuclear hazards or terrorism
How does medical payments coverage differ from personal liability for home or renters insurance?
Medical payments coverage is meant to quickly pay minor medical bills of anyone accidentally injured in your home, even if it's not your fault. This can help you avoid expensive, drawn-out lawsuits over small injuries like a slip-and-fall. Medical payments coverage limits typically range from $1,000 to $10,000, with some companies offering higher limits.
Personal liability insurance covers medical bills along with legal fees and lawsuit settlements if someone sues you. This coverage is meant to protect against more serious injuries, among other things.
For example, if someone falls off your trampoline and breaks their back, personal liability insurance will pay their ongoing medical and rehab bills as well as pain and suffering. That's why personal liability insurance typically starts at $100,000 and goes up to $1 million or more.
How much do medical payments on homeowners insurance cost?
It costs an average of $9 per year to add $2,500 of medical payments coverage to your home insurance policy, while $10,000 costs around $14 per year. That's a relatively small amount for the peace of mind that any minor accidents on your property can be quickly taken care of without needing to go to court.
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Annual cost of Medical payments coverage by company
Company | $2.5k | $5k | $10k |
|---|---|---|---|
| Allstate | $5 | $9 | $9 |
| State Farm | $5 | $9 | $15 |
| American Family | $7 | $7 | $12 |
| Farmers | $19 | $19 | $19 |
Frequently asked questions
What is the difference between bodily injury liability and medical payments coverage?
Bodily injury liability pays the medical bills of other drivers, passengers or pedestrians hurt in a car accident you cause. Medical payments coverage helps cover the cost of any injuries to you or your passengers after an accident, even if it's your fault.
Is medical payments coverage worth it?
Medical payments coverage is typically worth it for both auto and home insurance. It's usually cheap, but can save you a lot of money in the long run. For example, $5,000 of auto insurance medical payments coverage costs around $6 per month. That could help cover your health insurance deductible if you're hurt in an accident that's your fault.
Which is better, PIP or medical payments?
When comparing PIP and medical payments, the best choice depends on the type of protection you need. Personal injury protection (PIP) pays for more things than medical payments coverage, but it's also typically more expensive. That's because MedPay covers your medical bills after an accident, whereas PIP can also help cover lost wages or help around the house.
Methodology
To find the average cost of car insurance medical payments insurance coverage, ValuePenguin editors collected quotes from eight top insurance companies across all ZIP codes in Illinois. Quotes are for a single 30-year-old man with good credit and a clean driving record who owns a 2018 Honda Civic EX.
To find the average cost of home insurance medical payments coverage, ValuePenguin gathered quotes from four top insurance companies. Rates are for a married 45-year-old man with good credit who owns a home in Illinois.
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
