Medical Payments or Personal Injury Protection
Medical Payments Coverage, also known as MedPay, pays for medical expenses incurred as a result of an accident for both you and your passengers. You and your family are additionally covered should you be driving someone else’s car (with their permission), or if you are not in a car but are injured as a pedestrian. MedPay coverage will kick in no matter who is at fault, although your car insurer reserves the right to recoup the expense from another party should someone else be liable.
Personal Injury Protection, or PIP, takes MedPay to the next level by covering expenses related to an injury that are not necessarily medical in nature. Lost wages, childcare or funeral costs, to name a few. PIP coverage is currently required in only sixteen states.
If you already have a good health insurance plan, you may decide to go with the bare minimum of PIP or MedPay coverage — especially if you already have disability insurance.