Adding Med Pay to Your Auto Insurance
Re-posted on 2/22/19
Med Pay is a great little benefit that is a good idea to be added to your auto insurance policy. Med Pay is usually available in lower sums, like $1000, $5000, etc., regardless of who’s at fault in an accident. Med Pay can be used to pay for you and your passengers’ health insurance related costs like: ambulance costs, your health insurance deductible, your share of your co-insurance, your co-pay, even dental bills and more.
Med Pay Follows YOU Not Your Car
Each member of your vehicle has access to your selected Med Pay amount. Meaning, if you added $2000 Med Pay to your policy, and everyone in your car gets a little beat up in a car crash, you each have $2000 to help pay the urgent care, ER for stitches, or whatever medical bills you have. Even if you are the driver and are at fault. Some insurance companies only offer “excess med-pay” which is not as good as having “Med Pay” because it only pays for bills that your health insurance company doesn’t pay for.
Med Pay can be used if your foot gets run over by a car as you cross the street, and the other driver takes off. It can be used if you are in someone else’s car and you get hurt and need to see a doctor, or even if you are riding in a public bus. Med Pay follows YOU, not your car.
Med Pay can pay your medical bills in the event you are hurt, and the other “at-fault” driver’s insurance is taking forever to get your settlement paid. Your Med Pay can pay for these smaller medical bills while the battle between your insurance companies are being hammered out. In Nevada, if your insurance pays the Med Pay, and you win a settlement, your insurance company cannot make you pay back the Med Pay amount you received (but there are exceptions).
If you have medical insurance, it’s not a bad idea to use your health insurance plan to pay for your medical bills, because they have already negotiated with medical providers and hospitals a discounted “network” rate. This will eventually help you keep more of your settlement. But…the health insurance company will probably have the right to get money from your settlement, to get paid back, what they actually paid in your medical bills. This is called “subrogation” (see link below). Subrogation in this case makes it fair to your health insurance company for them to get paid back what they paid out on an auto accident. But only what they actually paid out.
Blog post explaining subrogation: Auto Insurance Word of the Day: Subrogation