Most people feel that if they use their medical payments coverage, also known as Medpay, they are somehow accepting the liability for the accident, or their premium will go up. So, why use your Medpay? One of the simplest reasons for using your Medpay Insurance Coverage is that if you are paying for it why not make use it? Medpay Insurance Coverage can assist in paying your medical expenses regardless of your fault in an car accident.
Now which one would you prefer? Most individuals decline Medpay coverage when purchasing or renewing their home auto insurance policy. Medical coverage not only covers your medical expenses, but also covers any passengers you might have at the time of the accident. In some states such as, Maryland, medical coverage also known as PIP or Personal Injury Protection, is coverage that the insured purchases with a liability policy in the State of Maryland. This coverage can be waived, but why waive something that can help you if you are injured in an accident. The minimum PIP coverage amount in Maryland is $2,500.00 and can be purchased up to $10,000.00 in coverage. Some states have minimum medical coverage as low as $500.00.
Here are two example cases, one with Medpay/PIP and one without:
Medpay or PIP Coverage: Jane has $5,000.00 in outstanding medical expenses and no health insurance. The liability carrier is offering her $10,000.00 to settle her claim. Jane has $5,000.00 in Medpay/PIP. She also has attorney’s fees (33 1/3%) in the amount of $3,330.00 and no case costs. Jane attorney’s fees are only taken out of what she receives from the liability carrier ($10,000.00). In the end Jane nets $6,670.00.
No Medpay or PIP Coverage: Jane has $5,000.00 in outstanding medical expenses. The liability carrier is offering her $10,000.00 to settle her claim. She also has attorney’s fees (33 1/3%) in the amount of $3,330.00 and zero case costs. In the end Jane will net $1,670.00, as she must use the money she receives from the other driver to pay her medical bills.
So, which one would you choose? The next time you purchase coverage, considering getting medical coverage, even if it is the minimum. In the end it can make a big difference in your settlement.
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