Nothing is great about car accidents, and the financial toll of medical expenses is no exception. Luckily, there are several types of car insurance coverage that can help cover the costs of medical bills that result from a car accident, depending on where you live—including personal injury protection (PIP), medical payments coverage (MedPay), and bodily injury liability coverage. In some situations, your health insurance can also help cover these costs.
Here’s how car insurance can help with medical bills from eligible car accidents and what you should know about your coverage.
TL;DR
- Medical bills for you or your passengers from car accidents are usually covered by PIP or MedPay coverages on your car insurance policy.
- Bodily injury liability coverage can help pay for another driver’s medical expenses if you’re the at-fault driver.
- Coverage options and limits often depend on state laws, which can vary and affect the kinds of protections and maximum benefits available in different areas.
- Your health insurance can also help cover the costs if you get injured in a car accident.
How does car insurance cover medical bills?
There’s actually a few ways car insurance helps cover accident-related medical expenses. Here’s a breakdown:
Personal Injury protection (PIP) coverage
Personal Injury Protection, or PIP, covers a bunch of medical expenses and other accident-related costs that you and your passengers might need, regardless of who caused the accident. This coverage is especially helpful in no-fault states, where PIP is usually legally required.
Coverages usually include:
- Medical expenses: Like ambulance rides, hospital stays, surgeries, follow-up visits, and rehabilitation
- Lost wages: Helps replace 60 to 80% of your income if accident-related injuries leave you unable to work. Different states will have specific percentages and limits for this, so make sure to check your policy.
Coverage limits are usually between $10,000 and $50,000, depending on your policy and where you live, so make sure to check your policy.
Medical payments (MedPay) coverage
Medical payments coverage, often called MedPay, helps pay medical bills for you and your passengers after a car accident, regardless of who caused the accident. It’s designed to supplement your what your health insurance covers and includes things like:
- Co-pays and deductibles
- Out-of-network surcharges
- Ambulance fees after a car accident
- Funeral services
MedPay limits are usually between $1,000 and $25,000, based on where you live and the amount you select when you get your policy.
Liability coverage (bodily injury)
Liability coverage helps pay costs related to injuries or damages caused to others in an accident where you (or someone driving your car) are at fault. It does not cover your own medical expenses, since it’s designed to pay for the other person’s hospital bills and lost income.
Most states require you to set limits of $25,000 per person and $50,000 per accident for bodily injury liability, and you can usually choose a higher limit for added protection.
Picture this: You accidentally run a red light on your way home from work and hit another car. The other driver gets injured in the accident, leading to expensive medical bills. Bodily injury liability insurance can help cover the costs of their injuries, like ER visits, treatment, and lost wages, but you could be responsible for costs that exceed the limits of your coverage.
What’s the difference between PIP and MedPay?
PIP and MedPay both help cover medical expenses after a car accident, but they’re not the same thing. PIP, often called “no-fault insurance,” provides more than just medical coverage—it also helps with things like lost wages and essential services like childcare, making it more well-rounded. It can even cover extra costs like transportation to and from medical appointments.
MedPay, on the other hand, covers accident-related medical expenses and health insurance deductibles, but it doesn’t cover non-medical costs.
PIP is usually required in no-fault states and often comes automatically with some car insurance policies. MedPay is typically optional and more common in states with an at-fault system.
Can I choose which coverage I want?
When choosing car insurance, the options you have usually depend on where you live. In no-fault states like New Jersey or Oregon, Personal Injury Protection (PIP) is usually included in policies. Meanwhile, Medical Payments Coverage (MedPay) is more common in states like Tennessee or Illinois. Most insurance companies only offer one type of coverage depending on state rules, but in Texas, you can often choose between PIP and MedPay.
The bottom line is that MedPay is usually an optional add-on, while PIP is mandatory in some states.
When is medical care not covered by car insurance?
Car insurance won’t cover medical bills if they go over your policy’s limits or if your plan doesn’t include the right coverage options. For example, if you only have liability insurance, it won’t cover your own medical expenses—as it’s meant to cover the damages and injuries of others if you cause an accident.
If your medical costs go over your PIP or MedPay limits, you’ll be responsible for the rest unless your health insurance kicks in. To avoid this, it might be a good idea to consider a higher PIP or MedPay coverage.
What should I do if I’m injured in a car accident?
We hope you’re never injured in a car accident, but here’s how to handle it if you are:
- Seek medical attention: Get any injuries, even if they seem minor, checked by a healthcare provider. Immediate treatment also makes sure you have proper documentation for claims.
- File a police report: For major accidents, a police report is usually required before you can file an insurance claim.
- Document injuries and expenses: Save all medical bills, receipts, and reports related to the accident. These will support your insurance claim.
- Report the accident: Notify your insurance company as soon as possible, and provide accurate details about what happened.
- Contact your health insurer, if you need to: If your medical expenses exceed the coverage limits of your car insurance, health insurance coverage may help out.
At Lemonade, we designed our digital claims process to be as quick and easy as possible. Just submit your claim through the app with the help of our friendly chatbot, AI Jim, then you’ll be paired up with one of Lemonade Car’s claims advocates to help you with the rest of the process.
Before we go…
Understanding how car insurance covers medical bills can save you from significant financial stress in the aftermath of a car accident. With the right coverage—whether PIP, MedPay, or bodily injury liability—you’re better equipped to manage accident-related medical expenses and support your recovery.
Ready to get started? Get your free quote today
FAQs
Can I use health insurance to cover car accident-related medical expenses?
Yes, health insurance can help cover accident-related medical expenses that aren’t fully paid by car insurance. This includes costs like hospital bills, doctor visits, and rehabilitation services. However, it’s important to remember that co-pays, deductibles, and out-of-network limitations usually still apply, meaning you may need to pay a portion of the costs out of pocket.
Additionally, your health insurance might require coordination with your car insurance to determine which coverage applies first.
Does liability insurance only cover injuries?
No, liability insurance covers more than just injuries. It also helps pay for property damage, like repairing the other person’s car or other damaged property, if you’re at fault in an accident. However, it doesn’t cover your injuries or damage to your own car.
Do car insurance companies pay medical bills directly?
Most car insurance companies reimburse you for medical bills rather than directly paying healthcare providers. After you submit your claim and documentation, they’ll issue a payment up to your policy limit for eligible claims. For larger bills, you might need to work out a payment plan with your healthcare provider while waiting for reimbursement.
What happens if I can’t afford my medical bills after an accident, and I’ve reached my PIP or MedPay limit?
If your medical costs exceed your coverage limit, you’re responsible for paying the remaining balance. You can explore options like negotiating with healthcare providers, setting up a payment plan, or tapping into your health insurance.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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