Medical Payments Insurance

Medical Payments Insurance explained. Many people consider how much auto insurance coverage they may need, balanced against its cost. Yet, most people don’t think much about the different kinds of auto insurance available to them. Most don’t know medical payments insurance is even available. Unfortunately, despite being legally mandatory, many Alaskan drivers fail to carry any auto insurance – much less the right amounts. One important type of automobile insurance is called “Medical Payments” coverage. It is just as important as Liability and Uninsured Motorist coverage. Alaskan residents can protect themselves by purchasing as much as they can afford – at least $25,000 per person. $100,000 per person is even better. It’s cheap protection.

UNDERSTANDING MEDICAL PAYMENTS INSURANCE

Generally speaking, medical payments insurance covers the cost of medical expenses arising from an automobile accident – regardless of who is at fault. It can also cover the following expenses that may arise out of a car crash – even if you are nowhere near your insured vehicle:

• Medical Transport;
• Emergency Room Expenses 
• Radiology – X-rays / CT Scans / MRIs 
• Anesthesia; 
• Surgeon fees; 
• Medical facility / hospital fees; 
• Prostheses; 
• Doctor’s visits; 
• Dental care required as a result of a car crash; and 
• Funeral expenses. 

It covers all of your occupants and is optional in Alaska. Sadly, many people either decline the coverage, or do not know they have the option of purchasing Medical Payments coverage. Medical payments insurance can be used directly as primary coverage for expenses, or as a supplement to health care coverage you already have – paying co-pays and deductibles when you use your health insurance. Different policies take a different approach to this. Nonetheless, having medical payments insurance offers peace of mind that all expenses will be covered.

HOW TO GET MEDICAL PAYMENTS INSURANCE

The good news is, medical payments insurance can be added to your car insurance policy at any time. The cost of it is directly proportional to the amount of coverage you select per incident. Depending on your insurance policy and the size of coverage you choose, the insurance can be as low as $2.00 – $7.00 per month. This kind of coverage costs very little. Hopefully you never need it, but it ensures occupants receive the medical care they need.

Is it time to review Your Medical Payments (MedPay) Auto Insurance? Most of us buy first automobile insurance when we are “young and poor.” Our interaction with an insurance sales agent goes something like this: “I have no money. Sell me the cheapest coverage you have to let me legally drive in Alaska.” As a result, insurance sales agents normally sell us “statutory minimum”  “50/100” Liability insurance. We may or may not even know there is more protection available such as U/UIM and Medical Payments.

Statutory Minimum Is Not Enough

Problems arise when we get older. We are (hopefully) not so poor. Living the American Dream, many of us have worked hard and saved money. We have a home and are raising families. Through decades of effort, we have a bit of “heel on our shoes.” Yet, we continue to drive with the same terrible automobile insurance that we bought as kids…

If you are over 35 (and certainly if you are over 45), it is time to update your automobile insurance. Here are my nuts-and-bolts suggestions, after 33 years of cutting through automobile insurance like a hot knife through butter. Talk to your insurance sales agent. They are trained to help you understand how much insurance is appropriate in your circumstances. It is his/her job to ask you questions, evaluate your situation, and make informed suggestions. Furthermore, this service costs you nothing. Call your insurance sales agent right now and set up an “Insurance Review Meeting.”

Medical Payments Insurance

Medical Payments or “MedPay” insurance normally pays for medical bills arising from an automobile accident. It covers you and all occupants of your vehicle. And while it is not mandatory under Alaskan law – it should be. Many people have no MedPay or only $5,000. This is not enough.

How Much Does It Cost

I recommend you buy $100K of “MedPay” insurance. It should cost between $50 and $75 every six months. People with sufficient MedPay rarely get bankrupted by medical bills and aren’t harassed by collection agencies after a Motor Vehicle Accident. It is cheap peace of mind. Buy all you can afford.

BOTTOM LINE

If you or a loved one gets hurt in a car crash, be sure to coordinate payment of your medical bills between your health insurer and your Medical Payment insurer. DO NOT let your Medical Payments insurer exhaust your benefit up front. This is a common mistake.

This Blog is Part 3 of a 5 Part Series. Check these posts for information about Liability, U/UIM, Umbrella, and Homeowner Insurance.

Johnson & Associates has been helping Alaskans for nearly 30 years. It’s who we are.

And while we hope you never need us… We’re here if you do. ~ Doug Johnson

Please call Johnson & Associates to discuss your case: (907)277-3090 or use our online contact form.

Secondary Source: Insurance Information Institute

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