Med Pay, short for medical payment coverage, is an optional type of insurance coverage that individuals living in Indiana can choose to add to their policy. If you elect to add Med Pay to your policy, it will be part of your auto insurance and can help you if you are involved in an accident.
Med Pay is most often used after an accident happens, and only helps those that hold the policy. This means that the other driver in an accident can never benefit from this part of your insurance policy. It will only cover you and those in your vehicle when the accident happened.
How Does It Work?
Med Pay is offered in two different ways. You can choose to either have primary coverage or secondary coverage. Primary coverage is usually more expensive than secondary but gives the insurance policy holder more coverage. With primary coverage, you can use Med Pay to pay your medical bills up to the amount listed on your coverage.
If you opt for secondary coverage with Med Pay, you must already have health insurance in place. In this case, Med Pay will step in to cover anything that is not already covered by your primary insurance policy. For example, if you have a copay after your insurance pays your bills, you can use Med Pay to pay that remaining balance.
Benefits of Med Pay
For many lucky drivers, Med Pay will never be a word they need to know. But for those involved in an accident, having this coverage added to your auto insurance policy can be a great help when it comes to paying for damages and injuries. Med Pay is no-fault, so you can reap the benefits of it whether the accident was your fault or not.
One of the biggest benefits of Med Pay is the ability to receive your Med Pay benefits while you wait for your accident case to settle. For many, the hardest part of an accident claim is figuring out how to pay bills while the insurance companies work with your attorney to settle, which can take a long time. With Med Pay, you will receive money to help pay for any medical expenses caused by the accident before the claim is finalized, helping you return to your normal life much quicker.
Cashing Out Med Pay
While having Med Pay as part of your auto insurance policy will help with your cash flow following an accident, it can only help with the cash flow related to your medical expenses. Many people unfamiliar with Med Pay will assume that they can essentially cash out their policy amount, but in fact, Med Pay is often paid directly from your insurance company to your healthcare provider, so you will never actually see the money in your hands. If you can prove that you already paid your medical bills, there is a chance that you can change this. Speaking with your car accident attorney will help you understand what, exactly, you can do with your Med Pay benefits.
For more information about Med Pay or to add it to your policy, contact us at Stewart & Stewart. You can give us a call at 1-800-33-33-LAW or visit our website.