What is MedPay?

Mary McMahon
Mary McMahon

Medpay is car insurance coverage providing payouts for accidents sustained by the policyholder, as well as any people in the vehicle with the policyholder at the time. This term is short for “medical payments” and may also be seen written as “med pay.” Medpay coverage is optional, and people purchasing insurance are not always made aware of it, despite the fact that it is low cost and can be an excellent supplement for a car insurance policy, as medical expenses associated with accidents can be quite high and increasing medical payments coverage is a often an option worth considering.

MedPay covers funeral expenses after the death of someone in an auto accident.
MedPay covers funeral expenses after the death of someone in an auto accident.

Under medpay coverage, if the policyholder is involved in an accident, she is covered along with any passengers. Policyholders are also covered if they are struck while walking as pedestrians. Fault is not considered; whether someone hits a tree, is hit by another vehicle, or behaves negligently and causes a multiple vehicle accident, the medpay coverage will provide a payout.

In addition to covering medical expenses, this coverage provides funeral expenses. Funerals can become extremely costly, even when people opt for minimal services, and they are often not covered by insurance. Having medpay coverage can relieve stress on family members after a death in an accident by covering all or part of the funeral costs, allowing people to hold on to life insurance policies, savings, and other bequests.

This coverage does not extend to people in other vehicles or pedestrians the policyholder hits. These individuals should be covered under the minimum car insurance required by law in most regions. People should be advised that coverage minimums are often low, and it is a good idea to get more coverage for protection. In regions where there are no insurance mandates for drivers, getting car insurance anyway might be worth considering, as people who cause accidents can be liable for large sums of money.

People shopping for car insurance can ask about medpay coverage and find out about the rates. It is sold in increments and people may receive a discount for buying multiple increments. Insurers typically limit the overall amount of coverage they will provide. The medpay is attached to the policy as a rider and can be canceled at any time if people no longer feel it is necessary or cannot afford it. Ending this insurance service will not affect the underlying policy, and it can always be added back on later.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a wiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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