What Is Medical Payments Coverage?

Last Updated on December 27, 2025

Medical payments coverage (often called MedPay) is an optional auto insurance coverage that helps pay medical expenses for you and your passengers after a car accident—regardless of who caused the crash. Depending on the state and policy, MedPay may also help if you’re injured while riding in someone else’s vehicle or if you’re hit as a pedestrian.

Many drivers assume they don’t need MedPay because they already have health insurance. But MedPay can still be useful because it can help with out-of-pocket costs (like deductibles and copays), cover passengers who aren’t on your health plan, and pay certain expenses quickly without waiting for fault to be sorted out.

Key Takeaways

• Medical payments coverage (MedPay) helps pay medical expenses after a car accident for you and your passengers—typically regardless of fault.
• MedPay can still be useful even with health insurance because it may help cover deductibles, copays, and passenger injuries that your health plan doesn’t handle.
• MedPay is usually limited to medical and funeral costs (not lost wages or childcare), while PIP in no-fault states is often broader.
• A practical way to choose a MedPay limit is to match your health insurance deductible or other out-of-pocket exposure you’d want covered after a crash.

How Medical Payments Coverage Works

MedPay is designed to be straightforward:

• No-fault medical coverage: It can pay medical bills whether you caused the accident or not.
• Per-person limits: You choose a coverage limit (commonly a few thousand dollars up to around $10,000 in many states, though higher limits may be available depending on where you live).
• Claim speed: MedPay is often used to handle smaller, immediate medical bills quickly—especially before a larger liability claim is resolved.

Important: MedPay rules vary by state and insurer. Your policy language determines exactly who qualifies as an insured person and which expenses are covered.

What MedPay Typically Covers

MedPay generally covers reasonable and necessary medical expenses related to injuries from a covered auto accident. Common examples include:

• Emergency room visits and urgent care
• Doctor visits and specialist care
• Hospital stays and surgery
• Diagnostic tests (like X-rays)
• Rehabilitation and physical therapy
• Chiropractic care (where covered by the policy/state rules)
• Ambulance/EMT transportation (see car insurance covers ambulance ride)
• Funeral expenses in the event of a fatal injury (learn more about funeral costs after a fatal accident)

MedPay can also overlap with other protections you may already have. For example, some people pair MedPay with separate accidental death coverage for broader, non-auto-specific protection.

Who MedPay Can Protect

MedPay is often valuable because it can protect more than just the named driver. Depending on your policy and state rules, it may apply to:

• You (the policyholder)
• Your passengers if they’re injured in your covered vehicle (see are passengers covered by car insurance?)
• You as a passenger when riding in another vehicle (in many cases)
• You as a pedestrian or cyclist if you’re struck by a vehicle, depending on your policy/state (related: does auto insurance cover bicycle accidents?)

Because coverage details vary, always check the policy definitions for “insured,” “occupying,” and any exclusions.

What MedPay Usually Does Not Cover

MedPay is helpful, but it’s not a catch-all. In many states and policies, MedPay does not cover:

• Damage to vehicles (that’s handled by collision/comprehensive or property damage liability, depending on fault)
• Injuries you cause to other drivers (that’s typically covered under your bodily injury liability coverage)
• Lost wages and essential services (these are commonly part of personal injury protection (PIP) in no-fault states, not standard MedPay)
• Pain and suffering (typically handled through an injury claim against the at-fault party where applicable)

MedPay vs. PIP vs. Health Insurance

MedPay is one of several ways medical bills can be covered after a crash. Here’s how it commonly fits into the bigger picture:

• MedPay: Usually limited to medical (and sometimes funeral) expenses, with relatively modest limits.
• PIP: Often broader than MedPay and may include lost wages and other benefits in no-fault states.
• Health insurance: Can cover many crash-related injuries, but you may still face deductibles, copays, networks, and claims coordination.

Which one pays first depends on your state, your policy language, and how your insurers coordinate benefits. If you want a deeper explanation of payment order, see health insurance or car insurance pays first after accident and this guide on when car insurance pays for medical bills after an accident.

Is MedPay Required in Your State?

In most states, MedPay is optional. However, there are a few important exceptions and “look-alike” requirements:

• Maine: Requires a minimum amount of medical payments coverage as part of an auto policy.
• New Hampshire: Auto insurance is not required for most drivers, but if you do buy an auto policy, it must include at least a minimum amount of medical payments coverage.
• No-fault states: Many no-fault states require PIP (not MedPay), which is similar but often more comprehensive. No-fault rules can also affect pricing (see is insurance in a no-fault state more expensive?).

To confirm what’s required where you live, check your state’s minimum auto insurance rules here: state-by-state auto insurance requirements.

How Much MedPay Coverage Should You Buy?

A practical way to pick a MedPay limit is to match it to the amount you’d most hate to pay out of pocket after a crash. Many drivers set MedPay equal to (or slightly above) their health insurance deductible so it can help cover deductible/copay exposure.

Consider choosing a higher limit if:

• You have a high-deductible health plan (HDHP) or large out-of-pocket maximum
• You carpool often or frequently drive with family/friends
• You want extra protection for quick medical bills (ambulance, ER, imaging)
• You don’t have robust health coverage and want a “first line” safety net (more on that here: do you need MedPay if you already have health insurance?)

How Much Does MedPay Cost?

MedPay is often one of the more affordable add-ons on an auto policy, but the price varies by state and insurer. Your rate typically depends on:

• Your chosen MedPay limit
• Your driving/claims history and overall risk profile
• Where you live and where the vehicle is garaged
• The broader factors insurers use to price auto insurance (see top factors that determine your auto insurance rates)

Keep in mind that any claim has the potential to affect your rates at renewal—even if you weren’t at fault. For context, read insurance rise after no-fault accident.

Should You Add Medical Payments Coverage?

MedPay is often worth considering if you want an extra layer of protection for medical costs after an accident—especially if you drive with passengers, have a high health insurance deductible, or want faster help for immediate medical bills.

On the other hand, you may be able to skip MedPay (or choose a lower limit) if you already have strong PIP benefits in a no-fault state and your health insurance has low out-of-pocket costs. Even then, it’s smart to compare the small premium difference against the convenience and passenger protection MedPay can provide.

FAQs on Medical Payments Coverage (MedPay)

Final Word on Medical Payments Coverage

Medical payments coverage isn’t meant to replace health insurance or broad injury coverage. Instead, it’s a simple, no-fault add-on that can help pay medical bills (and sometimes funeral expenses) after a crash—often with fewer hoops and faster payment than a fault-based injury claim.

If you’re not sure whether MedPay is already included in your policy, check your declarations page or call your insurer. It’s usually an easy coverage to add or adjust.