Medical Expense Payments Benefits, also known as “MedPay,” is an optional insurance coverage that is offered in DC, Maryland, and Virginia. MedPay is essentially a supplemental health insurance policy that pays for your medical bills when you have been in a car crash or motorcycle accident.
MedPay is a no-fault provision. It pays out if you are either hit by another driver or are the one who caused the accident.
MedPay is a good purchase even if you have regular health insurance because it can help you maintain a steady cashflow while you are waiting for your case to settle. You will not recieve any money from the insurance company of the driver who hit you until you have actually settled your case. Therefore, MedPay can be used to pay your co-pays as they come in or to offset some outstanding healthcare balances.
Additionally, the MedPay carrier does not have a right to be repaid at the end of the case if you ultimately get a recovery from the liability carrier.
We typically advise that our clients carry at least $5,000 in MedPay coverage. Remember that, under most auto policies, the amount of MedPay that you carry is multiplied by the number of vehicles on the policy. So, if you have a $5,000 policy and three vehicles, you have $15,000 in coverage.