What is the Difference Between Medical Payments and Liability Insurance Coverage?

When it comes to auto insurance, there is a clear distinction between medical payments and bodily injury coverage. Medical payments insurance (MedPay) covers the policyholder, while bodily injury coverage applies to a third party. Liability insurance only pays for damages caused to third parties, but MedPay applies regardless of fault. In most states, bodily injury coverage is mandatory, while medical payments insurance is only required in Maine and New Hampshire.

Medical payments insurance (MedPay) covers the medical bills of the policyholder and their passengers after a car accident, regardless of who was responsible for the accident. This type of coverage often deters injured parties from taking costly legal action against them, so experts recommend opting for the highest coverage limit offered by your insurance company. Liability coverage is included in home insurance policies, and some insurers offer the consumer the option of adding or waiving medical payments to other coverages. The purpose of this coverage for renters is the same as for homeowners, so that you can pay for the medical expenses of guests for injuries that occur during the rental.

MedPay can also cover deductibles, copays, and coinsurance expenses that come with other types of coverage, so it can help you avoid additional costs if you're seriously injured in an accident. When a guest is injured on your property, medical payment coverage is intended to cover minor injuries that guests may suffer, regardless of who is at fault. This type of coverage is quite limited and is only intended for minor physical injuries, but it can prevent an injury from becoming a lawsuit. Medical payments to other people pay for “necessary medical expenses” that occur within three years from the date of the incident, according to the Office of Insurance Services (ISO).

An injured guest may think twice before suing you if you offer to cover their hospital bills through medical payments to other people's coverage. In summary, car insurance for bodily injury and medical payments cover similar things, but in different situations. While both medical payment coverage and personal liability coverage reimburse you for medical expenses if a guest suffers a physical injury at your property, there are some key differences between the two. Medical payment coverage covers your medical expenses after an accident, regardless of who was at fault, so it often overlaps PIP and standard health insurance.

If you're the victim of an accident when you're not in a vehicle, medical insurance covers you. However, if you cause the accident yourself, you must file a claim with your own medical payments insurance or with your personal injury protection (PIP) coverage if you don't have MedPay.

Carl Somilleda
Carl Somilleda

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