If you suffer physical injuries or property damage in a California car accident, one or more insurance policies may be available to cover your losses. Med Pay or Medical Payments Coverage is an optional type of insurance you can purchase for your own policy. Med Pay will contribute coverage to your medical expenses regardless of who is at fault for the car accident.
What Is Med Pay Insurance?
Med Pay insurance is a type of no-fault, first-party automobile insurance coverage that is available on California policies (though not mandatory). The “no-fault” aspect means that as a policyholder, you do not have to prove that the other driver is at fault to qualify for Medical Payment Coverage for your injuries. “First-party” means that you are submitting a claim for Med Pay coverage with your own insurance provider.
What Does Med Pay Cover?
The primary purpose of Med Pay insurance is to pay for the policyholder’s medical bills after a car accident. This can include:
- Ambulance fees
- Emergency room visits
- Hospital stays
- Emergency treatments
- Surgeries
- X-rays or scans
- Specialists
- Physical therapy
- Rehabilitation
- Chiropractic care
- Prescription drugs
- Medical equipment
- Funeral and burial costs
Med Pay insurance can also pay for the policyholder’s family members or vehicle passengers. The policy will offer coverage up to its limit, which is a minimum of $1,000 in California.
Is Med Pay Required in California?
No, Med Pay is not required in the State of California. It is an optional type of auto insurance coverage that drivers can elect to add to their policies. The only types of insurance that are mandatory in California are bodily injury and property damage liability insurance (30/60/15 coverage). Liability insurance pays for the losses of others after an at-fault accident. If you wish to have coverage on your own policy to pay for your own losses, regardless of fault, you can purchase Med Pay, collision, comprehensive, uninsured and underinsured motorist, GAP, and/or rental insurance.
What Is the Made Whole Doctrine?
In California, a law known as the “Made Whole Doctrine” gives you the guarantee of being made whole financially before your car insurance company can take money from your settlement to reimburse payments that it already made to you, such as in Med Pay coverage. A process known as subrogation occurs when an insurance company recovers money from the person at fault for an accident to reimburse itself for benefits already paid to its policyholder. Under the Made Whole Doctrine, you must be reimbursed first before the insurance company has the right to recover what it paid you from the defendant, in Med Pay coverage or otherwise.
The Benefits of Med Pay Insurance
Med Pay insurance is a fast and stress-free source of financial compensation that can pay for your immediately necessary medical treatments. While your claim is still pending, Med Pay can pay for your hospital bills upfront. It can also provide supplemental coverage to fill gaps that may exist if the at-fault driver does not have enough bodily injury liability insurance to fully pay for your losses. Unlike most other types of insurance, Med Pay provides coverage without requiring any deductibles or copays. There are also no restrictions on the type of health care provider you can visit. For these reasons, Medical Payment insurance is a good choice if you want additional financial security on your automobile policy in California.