What is PIP and MedPay Coverages?

While similar in some ways, PIP and MedPay are not identical. Both of these types of coverages are additional coverages purchased under YOUR own policy to help pay expenses incurred as a result of a motor vehicle accident. Both of these coverage types are NO-FAULT provisions; which basically means it does not matter who is at fault for the auto accident.

PIP (or personal injury protection) covers medical expenses, loss of essential services and loss of income while MedPay generally only covers medical expenses. PIP typically comes in coverage amount increments of $2500, $5,000, $10,000. 

The biggest difference between PIP and Med Pay coverage is that under the MedPay provisions, your insurance company has a right to recovery for any medical expenses they paid out on your behalf. This means that after your case settles with the other dirver’s insurance carrier at fault, you will have to reimburse your insurance company for any money they paid on your behalf for any medical expenses you incurred. Under PIP coverage provisions, however, you do not have to pay back any money paid out on your behalf. The second difference is that PIP coverage is usually more expensive than MedPay coverage.

Who is covered under PIP Provisions:

Those covered by PIP insurance typically include:

  • The policyholder
  • Passengers
  • Relatives in the policyholder’s household
  • Authorized drivers of the policy holder
PIP may also cover:
  • Policyholder and household members, if injured in someone else’s vehicle or when a pedestrian injured by a vehicle
  • Injuries sustained if hit while riding a bike

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