MedPay is optional car insurance coverage in most states where it's offered, so you probably aren't legally required to have it. However, it may make sense to you if you're not sure if you can afford your medical bills after a car accident, let alone those of your passengers. If you have health insurance, MedPay can also help you cover your out-of-pocket expenses, such as your deductible. If you don't have health insurance, you should definitely consider MedPay for peace of mind and potentially avoid the financial burden of significant medical expenses.
If you have an accident, medical payments cover medical and funeral expenses. Medical payments can also cover your family members or passengers, regardless of fault. This type of car insurance coverage also applies if you or your family members are traveling as passengers in other vehicles or are hit by a car while walking or biking. Also known as the amount of your coverage, your insurance limit is the maximum amount your insurer can pay for a claim, as stated in your policy.
Most insurance policies, including home and car insurance, have different types of coverages with separate coverage limits. The medical payment coverage in your auto insurance policy will cover your co-worker's hospital bill up to the limits of your policy. Comprehensive car insurance and collision insurance are also common types of car insurance coverage, although no state requires them. When you receive a quote for a new insurance policy, the agent or insurer can pre-select coverage limits or present you with some options.
Car insurance coverages vary depending on individual and state needs, but almost all policies contain liability coverage. The insurance limits in your policy determine the maximum amount your insurer can pay for claims in each category of coverage. However, drivers who choose not to purchase auto insurance must show that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident. Progressive roadside assistance pays for towing services if your car breaks down for any reason, whether it's on the road or in your driveway.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. By requiring specific liability insurance for victims of an accident caused by you, they can receive financial help for injuries and property damage without seriously affecting their own financial well-being. For other types of auto insurance coverage, such as comprehensive auto insurance coverage and collision auto insurance coverage, the insurance limit is usually the cash value of the car, which normally takes into account the depreciation of the vehicle. In most cases, when an insurance company, agent, or lender refers to full-coverage car insurance, they are generally referring to all risks and collisions, in addition to any other coverage required by their state.