Medical Payment Coverage

WHAT IS MED-PAY?

Medical Payments Coverage (commonly referred to as "MedPay") provides insurance for the immediate medical expenses following an auto accident, including the typically substantial expenses associated with emergency services, such as ambulances, doctors, and trauma care. Your auto insurance company will pay for any medical treatment you receive as a result of a car accident up to the Med-Pay limit purchased, and can help cover things like your health insurance deductible and co-pays. Med-Pay covers medical expenses regardless of who is at fault in the accident, and the coverage moves with you, whether you are walking, riding with a friend, or on public transportation, as well as both in- and out-of state. As Commissioner of Insurance Marcy Morrison said, the purpose of Med Pay is for the injured party to be able to "concentrate on recovery instead of worrying about how the immediate bills will be paid."


WHAT DOES IT COVER?

If you're injured in an accident that another driver caused, it can often take months for their insurance company to pay your medical bills, which means without MedPay, you would be paying up front for these expenses, and then waiting for a reimbursement. With Med-Pay, however, your immediate costs are covered up to the limit you've purchased, with no wait-time for benefits to start. This would cover ambulance fees, chiropractic are, dental work, prosthetics, and many more medical expenses that might not otherwise be covered by your health insurance. It is in your best interest to keep, and possibly increase, your Med Pay coverage.

For those with high deductibles on their health insurance, MedPay is highly recommended. Without this coverage, if you are at fault in an auto accident and sustain injuries, you may not have ANY coverage for your own medical expenses. For example, if your health insurance has a $1,000 deductible and a 20% co-pay, and you incur a $5,000 medical claim from a car accident, you would end up paying $1,800 out-of-pocket. However, if you are covered with Med-Pay, you would end up paying ZERO out-of-pocket because this coverage would kick in immediately after the accident.

Medical Payment Coverage will cover:

  • the named insured on the policy
  • the named insured's resident spouse
  • any family member to the named insured, which is any person related to them by blood, marriage, or adoption who is a resident of your household
  • anyone using the vehicle covered under the insured's policy

Med-Pay also covers you and your family in the event of being struck by a vehicle while walking, jogging, etc. Young drivers who may not have health insurance (or who are relatively healthy and have high deductibles that they rarely meet) benefit considerably by having Medical Payment Coverage as well.

HOW MUCH DOES IT COST?

There is no provision in the law restricting companies from increasing premiums when providing MedPay coverage, so it is possible that your premium will increase accordingly. However, the premium for MedPay coverage is miniscule - often less than $20 PER YEAR for up to $10,000 in coverage. Most auto insurance companies offer Med-Pay coverage in increments from $5,000 to $25,000. Remember, there is no deductible or co-pay before you can access your coverage, so in the event of an accident, you having spent a few dollars extra per month on your insurance premium will provide you with instant additional medical coverage. Medical Payment Coverage can also be a cost-effective addition if you do not have an extensive health insurance plan, if you do not have a comprehensive auto insurance plan, or if you simply want extra coverage for yourself and your family in the event of an accident.


HOW DO I GET IT?

Insurance companies in Colorado are required to include a minimum amount of Medical Payment Coverage ($5,000) on all auto insurance policies issued in the state. While the coverage is mandatory, you have the option to opt-out in writing, and, when searching for ways to lower your car insurance premium, an agent may offer - or you may be tempted - to drop MedPay from your policy, as it may be explained to you, or appear, as redundant to your health insurance. It is highly recommended to all policy holders, even those with adequate health insurance, to keep, or add additional Med Pay coverage to their auto policy. For an insignificant increase in your auto insurance premium, the coverage can help protect your family from the financial stressors that are associated with the aftermath of an auto accident.


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