It can be difficult to know what sort of coverage to choose when it pertains to car insurance. In the end, there are two sorts of coverage. You can choose between Personal Injury Protection (PIP) and Medical Payments (MedPay). Both have their own set of advantages and disadvantages, and there is no one-size-fits-all solution, which will fix all of your concerns.
How Do PIP and Medical Payments Work?
MedPay and PIP compensation are wholly reliant on whether the motorist resides in a no-fault or classic tort liability state. Most states are tort liability states, which compel the at-fault driver and their insurance to cover damages to the victim’s automobile as well as any relevant medical expenses.
Nevertheless, in no-fault states, PIP plans cover only the amount required for personal injuries, leaving the coverage for damage to vehicles or other property. In no-fault states, liable drivers or their insurers must reimburse for these damages.
Individuals, without a doubt, must get additional liability insurance as well as collision coverage if they wish to ensure that damage to their vehicle is compensated.
Similarities and Discrepancies
In the case of a crash, both MedPay and PIP cover injuries to the driving policyholders and any passengers. In both cases, the fault is irrelevant. Both will be insured by their respective insurer, meaning they will be held responsible for any damages.
Those are cross-cutting parallels. So, what are the differences between Personal Injury Protection and Medical Payments?
- Personal Injury Protection
PIP covers almost every facet of medical coverage and hospitalization that you can imagine. PIP covers everything from nursing care and medication to surgery.
It is crucial to remember that full reimbursement is not necessary, although a co-pay may be. PIP also covers all lost income, home expenses, child care, and burial expenses in the case of wrongful death.
It is crucial to realize that PIP does not cover suffering and pain. In no-fault states, you may sue the other motorist for suffering and pain, as well as other damages. Nonetheless, the injuries must be significant and exceed a specified amount in medical expenses. You cannot just file a claim for suffering and pain for minor injuries.
- Medical Payments
In many aspects, MedPay is comparable to PIP, but it is not as extensive. It is not mandatory in all but two states (New Hampshire and Maine). It covers healthcare costs for the insured individual and other motorists specified on the policy, members of the insured individual’s family, and any occupants in the vehicle.
Based on your state of residence, MedPay can complement or even replace your health care insurance following an accident, including:
- Your insurance
- Your insurer
If it is deemed supplemental, you will utilize your medical coverage first to cover all of your injuries, followed by MedPay for copays and deductibles. On the other hand, if it is central, MedPay is utilized to cover the initial healthcare bills. The remainder, including recurring costs, will be covered by your health insurance.
MedPay was created to enhance any existing coverage which you may have. Some PIP recipients will complement with MedPay to make their accounts as robust as feasible.
Contact Karnas Law
For more information regarding Personal Injury Protection vs. Medical Payments, contact Karnas aw Firm. An experienced Car Accident Attorney will guide you through the similarities and differences of these two auto insurance policies.
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