Medical Payments vs. PIP Coverage on Car Insurance

When choosing car insurance, you might have the choice between adding medical payments (MedPay) coverage or personal injury protection (PIP) coverage to your car insurance policy. Some people think these policies are the same and interchangeable, but they aren’t. Think carefully over which type of coverage you might need to add to your policy. One might prove more of a benefit to you than the other. In some cases, you can buy both types of coverage. Here’s how each works. 

Coverage for Crash Injuries 

If you have a car wreck, then you might sustain injuries, have a lot of medical bills and even lose income. While health insurance might help you pay, that doesn’t mean you might not have outstanding costs. Your car insurance might offer MedPay or PIP coverage to help you cover what remains. That’s why it’s a good idea to carry one of these types of coverage. 

MedPay Coverage 

Medical payments coverage is usually the simpler of the two types of coverage. Coverage might pay for the medical bills of both the insured driver and their passengers.  

It doesn’t matter if you are at fault for the accident, this policy can still compensate you. It will also contain a limit on the maximum benefit it will pay. For more compensation, you might be able to file against another driver’s bodily injury liability insurance. That only applies if the accident was their fault, however. And, if that party does not have liability coverage, then your own policy might pay if you have uninsured/underinsured motorist bodily injury coverage. 

PIP Insurance 

Personal injury protection is often a bit more expansive than MedPay coverage. Like MedPay coverage, it will cover the driver’s and passenger’s injury costs regardless of fault. However, PIP coverage might also comp for lost income and extraordinary household expenses. Injured parties might therefore have help with other costs that beckon after accidents. 

Some states require drivers to carry PIP insurance because they are no-fault states. Regardless of who causes a wreck, the affected driver must first file against their PIP coverage for injury compensation. Only after they meet a certain threshold will they be able to file against another driver’s liability coverage. 

If your state doesn't require PIP coverage, you might be able to turn down the coverage when enrolling. However, if you lack health insurance, or might face a significant cost burden from car wreck injuries, then it might be a good idea for you to keep some level of protection. Even a low PIP level can provide several thousand dollars of assistance when needed.