Medical Payments Insurance

Published: | Updated: August 27, 2017

Definition - What does Medical Payments Insurance mean?

Medical payments insurance is part of car insurance. If the insured person gets into a car accident and gets injured, the medical payments insurance will help pay for the medical bills. For example, if someone has $1,000 of coverage and has $1,500 of medical bills after a car accident, their medical payments insurance will pay for $1,000 of the bills.

Insuranceopedia explains Medical Payments Insurance

In some states, medical payments insurance is mandatory coverage for car insurance, while it's optional in other states. When someone buys car insurance, they decide how much medical payments insurance they want. If their medical bills go over their medical payments coverage, the insured will need to cover the costs some other way.

The medical payments insurance coverage amount applies to everyone involved in a car accident and everyone gets the full amount of coverage for their medical bills. For example, if an insured person has $1,000 of medical payments coverage and gets into an accident that hurts themselves and a passenger, both the insured and the passenger will have $1,000 of coverage for their medical bills.

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