What is MedPay coverage and how does it help after an accident?

Medical payments coverage (MedPay) is an optional add-on to your auto insurance policy that pays for medical expenses for you and your passengers after an accident, regardless of fault and regardless of which vehicle you were in when injured. Unlike PIP, MedPay has no income replacement component — it covers only medical and funeral expenses. MedPay limits are typically modest ($1,000 to $10,000) but provide fast, no-hassle payment for initial medical treatment while your main injury claim is being processed. Unlike health insurance, MedPay generally does not reduce your medical providers' bills or impose network restrictions. A significant advantage: MedPay typically does not create a subrogation lien against your personal injury settlement, meaning these benefits are not recovered from your recovery (though some states permit MedPay subrogation — check your policy). MedPay is inexpensive to add to your policy and is particularly valuable as a supplement to high-deductible health plans.