Medical payment coverage is an optional type of car insurance that helps pay for medical and funeral expenses after a car accident. It's also known as MedPay and covers the policyholder, family members who drive the car, and passengers, regardless of who is at fault. Third-party medical payments coverage reimburses you for minor medical expenses if a guest is injured on your property, regardless of who is at fault. This type of coverage is quite limited and is only intended for minor physical injuries, but it can prevent an injury from becoming a lawsuit.
Meanwhile, liability insurance protects you from costly litigation and expensive medical bills if you are found legally responsible for the damages. Medical payment coverage is an optional form of auto insurance that can help pay for medical expenses or those of your passengers if you are injured in a car accident, regardless of who caused the accident. This coverage, also known as MedPay, applies to many of the same injuries and medical treatments that Personal Injury Protection (PIP) covers. PIP often has higher limits and insures a wider range of issues related to the accident. Third-party medical payment coverage is a type of liability coverage that is included in all standard home insurance policies. Also called Coverage F, this type of coverage covers economic medical bills when a guest is injured on your property (or outside of it in some cases).
It covers medical payments, such as health insurance deductibles and co-pays, doctor or hospital visits, x-rays and surgery, fees for ambulances and emergency medical technicians, rehabilitation and nursing care, and some medical equipment, such as prostheses. In other words, if you walk, ride in a friend's car, or use public transportation, your medical payment coverage remains active. When a guest is injured on your property, medical payment coverage is intended to cover minor injuries that guests may suffer, regardless of who is at fault. Once your medical expenses reach a certain threshold, the Michigan Catastrophic Claims Association (MCCA) begins reimbursing the insurance company. You may want to consider coverage for medical payments even if you have health insurance and protection against personal injury. While this type of coverage does not cover damage you cause to someone else's property, liability insurance will. Medical payment coverage and personal liability coverage are primarily intended to cover immediate medical and funeral expenses after an accident or to supplement other types of insurance.
They are not intended to replace health insurance or other forms of protection against personal injury.