Medical Payment Auto Insurance Coverage
The next time you receive a policy renewal from your automobile insurance company, take a look at the Declarations Page (coverage break-down) to determine the amount of “Medical Payments” coverage you carry. Unless otherwise requested, most auto insurance companies in Indiana, automatically quote medical-payment limits of liability coverage in the amount of $5,000 each person. If you or a family member, have never had to use this important benefit due to a traumatic injury from an auto accident, chances are you may not have given much consideration to the amount of med-pay coverage you should have.
What is med-pay insurance?
Medical-payment insurance exists for the benefit of the policyholder(s) injured in an auto accident. This coverage insures the automobile insurance company will make timely payments to the medical provider(s) for hospitals, medical treatment, physical therapy, and reimburse out-of-pocket medical costs including prescriptions, co-pays and other medically-necessary incidentals resulting from an accident.
How much medical payment insurance should I buy?
Most major health insurance policies today put forth high annual deductible plans. A good rule of thumb is to look at the deductible of your health insurance. How much of your family’s deductible could you affordably self-insure if you were seriously injured in an auto accident? Medical payment coverage of $5,000 may cover only half of the medical bills for someone with a $10,000 deductible health plan. Would you be comfortable withdrawing $5,000 from your savings or investments to make those medical payment arrangements which could have been easily avoided by doubling your med-pay auto insurance for just a few pennies a day?
It takes time to resolve a legal action. In the mean time, hospital and medical creditors require payment. You can avoid the financial and medical hardship created by callous collection agents, whom it seems (tongue in cheek) lock your phone number on their speed dial — by properly assessing your financial needs. The next time you have a moment, review your coverage. If you need clarification, get the answers you need from your agent or call lawyer Charlie Ward at 317-639-9501 for an in depth explanation of your auto insurance coverage. Then determine how much medical payment coverage is right for you.