What Is Med-Pay?

What Is Med-Pay?

When searching for ways to lower your budget, you may be tempted to drop or overlook medical payments coverage, commonly referred to as med-pay, on your auto insurance policy. Why pay extra for something that is not required by law in the state of Georgia? After all, med-pay sounds like a duplication of your health insurance, right?

However, if your bottom line is to lower your costs, you cannot afford to write off med-pay as unnecessary or optional. Med-pay is an often misunderstood part of auto insurance. The reality is that your desire to save money would be a great reason to increase the amount of your med-pay coverage!     

In short, if you are involved in an accident, med-pay will pay the medical bills up to your coverage limit for you, your family, and others riding in your vehicle, regardless of who is driving or who is at fault. Not only does med-pay cover everyone in your vehicle, but it moves with you if you are injured in someone else's vehicle. On top of that, med-pay carries no deductible or co-payment.

Unfortunately, it can take months for the at-fault insurance company to pay the injured's medical bills. While you or your loved one may have health insurance, you would have a deductible to meet and co-pays to face until a settlement is reached. The beauty of med-pay is that it kicks in immediately to help with these costs that would otherwise be a burden at a time when you need to simply recover.  

Still not convinced? What if you were to realize that the premium for med-pay is a miniscule part of your monthly premium? Often such coverage could be as low as $20 per year for up to $5,000 in coverage...an amount that is worth just having for the peace of mind should you need it. Be sure to understand that the at-fault driver's policy does not pay med-pay benefits to the injured party.

As a side note, some people are hesitant to use their med-pay coverage because they think it will negatively impact their insurance premiums by making a claim. However, your insurance company already knows you were in an accident, so utilizing the coverage for which you pay will not increase any impact the accident has on your insurance premiums.

In closing, the following is a basic example: You, your spouse, and your child are in a car accident that is not your fault. While you might be faced with a high health insurance deductible, you chose to carry $5,000 per person in med-pay. Immediately following an accident, $15,000 is available to pay medical providers in the unfortunate event that you and your family members are injured.

What to do now? Most people are unaware that med-pay is available to them and that it generally will not be offered as part of an auto insurance quote unless requested. You need to check your policy declaration page to confirm how much med-pay coverage you have elected. It is worth a quick call to your insurance agent to make sure you have chosen the maximum amount offered. Don't delay! 

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