Medical Payments Coverage in Auto Insurance Policies

What does the medical payment coverage section of your auto policy do? What is the coverage of medical payments? What does the medical payment coverage do to coordinate with your health insurance?

You will need to have automobile insurance if you are going to be driving a motor car in every state. Insurance requirements vary from one person to another. Therefore, the rates for automobile insurance can differ depending on what type of coverage you choose. People who own new cars will usually have to pay higher rates because the car is more costly to repair in the event of an accident. Older cars typically only receive the minimum coverage required by the state. Most people think of automobile coverage as covering their car, and paying for repairs in case of an accident. However, all states require you to have minimum medical insurance coverage.

This is due to the fact that Americans are not good at mixing with cars. An estimated 6,420,000 automobile crashes occurred in the United States in 2005. A total of 2.9 million people were hurt and 42,636 were killed in these car accidents. As more Americans take to the roads, automobiles are becoming a necessity. The United States has an estimated 243,023,485 cars. This makes it the largest vehicle market in the world.

Despite some people arguing that they don’t need medical coverage in their auto insurance policies, it is required by every state. Each state requires that the driver purchase the minimum amount of Personal Injuries Liability and Property Damage. However, some states don’t require the Bodily Injury Liability. This coverage doesn’t cover you but the other person involved in an accident. Florida is one example of a state where the Bodily Injury Mandatory does not apply. Florida residents are at high risk for subrogation due to this absence of regulations.

Because it can increase the amount of treatment you receive for injuries sustained in an auto accident, medical coverage is essential in automobile insurance policies. This coverage will usually cover your funeral expenses and medical expenses in the unfortunate event of your death. This coverage can help you in case you get hurt while riding in another vehicle. It can also protect your family members (wife, teenage drivers) in the unfortunate event they are injured while on the road.

There are currently 12 US states, excluding Puerto Rico, that have no fault auto insurance laws. Important to know that this type of insurance includes a form medical insurance as part of the actual automobile insurance policy. PIP is the name for this type of coverage. PIP covers more than just what the name implies (“Personal”), it also covers things like lost wages, child support, and other issues related to it. It can also be used in conjunction with your health insurance and will cover 100% of any medical expenses.

Although people think they have enough coverage with their health insurance, they do not realize the importance of your auto insurance’s medical component in case of an unavoidable accident. Important to note is that the amount you pay monthly will affect how high or low your coverage. A higher deductible will mean that you have more expenses out of pocket after an accident. You will be covered if an accident occurs if you have a low or no deductible.