Medical Payments Coverage

Transcript: Hi, I’m Indiana personal injury attorney David Holub, and this video discusses the subject of MedPay insurance coverage that sometimes can be purchased when you purchase automobile insurance. So here’s the key question: how does having Med Pay insurance coverage help me if I’m in an auto accident? Medical Payments coverage, sometimes referred to as Med Pay, provides for the payment of medical expenses that are attributable to injuries that you suffer in an automobile crash. It’s extra coverage over liability coverage, and you generally need to ask for the special coverage. Generally, it’s a benefit that the automobile insurance carrier agrees to pay in result of injuries that have suffered in a car or while alighting from a car, or entering a car. The benefit is generally payable regardless of who is at fault for the crash. As mentioned, Med Pay coverage can also extend to situations in which you are injured while getting out of a car, entering a car that is covered, or sometimes just walking to or from a car that is covered. For example, if you’re in a parking lot loading groceries into your trunk after shopping and another car hits you, Med Pay coverage will apply. Suppose you get run over in a parking lot walking from your car to the store and another careless driver hits you. Med Pay coverage usually can apply in that situation, unless there’s something unusual in the policy preventing it. Also, sometimes Med Pay coverage can apply if you or one of your children is engaged in crossing a street having exited a car or on your way to a car and you’re hit. In that situation, Med Pay coverage could apply to protect you against the bills you incur because of your injuries. Typically, the Med Pay coverage is sold in limited dollar values, such as $1,000 to maybe $25,000, and typically you see Med Pay sold at $5,000 increments, but it can be purchased for up to $100,000 in some cases. Many times, the better coverage you have, the better you will financially be in the event of a crash, since you have not only the Med Pay coverage benefits to protect you, but your ordinary health insurance can protect you in the event of a crash. One thing to keep in mind is that the company that is compelled to pay Med Pay benefits also may have what’s called a subrogation right. This means that at a final settlement of a claim, that company that pays Med Pay benefits will have an opportunity to be reimbursed a certain percentage of what it paid in order to recoup some of the losses that it incurred by having to pay you the Med Pay benefit. Med Pay is very helpful if you’re injured and can’t work, since when you’re unable to work your income is restricted and you’re having medical bills coming in. It’s an extremely valuable benefit to have if you can afford it. As with our other videos, this video just gives you some general information on the subject of Med Pay. You’re very welcome to call our office if you have questions about the subject of Med Pay or need other legal advice.