Medical Payments – the best kept Secret
During my time selling auto insurance, I was always amazed when the question of med pay came up. It surprised me when someone in their 40’s who has been buying auto insurance for many years would admit to not having any idea what Med Pay coverage is. They would usually admit that they never asked and the agent never offered. Wow! People will actually buy things without knowing what they are; even in the age of the internet.
Medical Payments (Med Pay) is kind of like an accident plan that covers the named insured, resident relatives and any passengers in the insured vehicle. Med Pay provides coverage while driving the insured car, any other car that you might borrow or rent, and public transportation.
The coverage kicks in when the named insured is in an auto or pedestrian accident and pays no matter who is at fault. Since there is no proof of liability required, the insurance carrier will pay benefits very quickly.
The insured purchases med pay according to the limit they prefer which can be from $1,000 to $100,000 depending on the insurance company. The higher the limit you select, the higher the premium charged. It makes good financial sense to buy as much of the coverage as you can afford; and here’s the reason why:
If you are involved in an accident that may or may not be your fault, you will be unable to prove this to your insurance company or the at-fault driver’s insurance company until an accident report is completed and made available to all interested parties. In most cases, this can take three or more business days.
So then, if you and any passengers in your vehicle require medical treatment and the provider wants proof of coverage, you can simply offer up your med pay coverage and the insurance company will take it from there. The best news is that med pay limits apply per person and not per accident. This means if you have selected a $10,000 limit and there are five people in your vehicle, you will have $50,000 (5 X $10,000) in coverage for the accident.
Medical Payments is a great coverage to purchase in the auto policy and I haven’t a clue why many agents don’t discuss it and recommend it to all prospective customers. It just makes good sense.