What is medical payments coverage? How does the coverage work? Do I need it?
These are questions that Colorado residents probably think about every time they review their auto insurance policy or consider purchasing a new one. Our office strives to educate our clients on each coverage available, and medical payments are a very important part of your policy.
What is medical payments coverage?
State Farm offers $5,000, $10,000 or $25,000 in medical payments coverage. Put simply, if you carry the coverage your policy will protect you up to the limit you choose if you are injured in a car accident. It doesn’t matter who is at-fault. It protects you and anyone riding in your vehicle with you.
How does the coverage work?
The medical payments coverage comes primary to your health insurance. It will pay for the first $5,000, $10,000 or $25,000 in medical bills you incur due to a car accident. Some examples of what you might use the coverage for are ambulance charges, chiropractic appointments, emergency room fees, surgery, deductibles and copays.
Do I need medical payments?
We always advise clients to check with their health insurance provider to see what is covered by their plan. Some plans exclude injuries due to car accidents. Each individual should also evaluate their deducible and out of pocket costs to decide if they are comfortable paying them on their own. If they would like assistance with those expenses in the event of a car accident, medical payments coverage is the best option.
How are you covered in case of an accident?
You were stopped at a red light when another car hit yours. You were injured. Medical payments coverage will pay reasonable medical expenses up to specified limits for covered persons. Now, let’s say that your passenger was injured as well but they don’t have health insurance. Medical payments would protect your passenger in that situation.
Consider this example: A Mom is in charge of picking up her children along with two others from school this afternoon. The two children do NOT have health insurance. The kids are yelling and playing in the back seat, and she is distracted. She runs a stop sign and causes an accident where everyone is injured. Luckily, she carries $25,000 in medical payments so those children’s hospital bills, along with her own, are paid by State Farm.
Perhaps she is driving home and another driver runs the stop sign and hits her vehicle. Mom and the children are injured but the other driver doesn’t have insurance. Their bills are paid by State Farm through her medical payments coverage and anything above and beyond that amount is handled by her uninsured motorist coverage.
How much coverage do you need?
The coverage is not required by most states. You can sign a waiver in Colorado to decline the coverage. It does provide great coverage at an affordable price. The cost will correspond to the limits you select. There are no deductibles or copays, so this coverage can pay from the first dollar of incurred, covered expenses.
Insurance is complicated, and each family’s situation is different. In our office we help manage the risk of everyday life and protect the assets our clients have worked so hard for. In addition to auto insurance our office provides Homeowner’s, Renter’s, Life, Health and Bank products. Please contact our office to set up a time for us to put together obligation-free rate quotes and a comprehensive review of your current insurance policies.
9100 W. 100th Ave Unit B-2
Westminster, CO 80021