In Florida, drivers are required to carry a $10,000 automobile Personal Injury Protection (PIP) policy that covers 80% of the medical bills and 60% of the wages lost. That means, if your hospital bill is $1,000, PIP will pay $800. What about the $200? That’s where MedPay comes in.
MedPay (medical payments) is an additional, but optional, coverage in a car insurance policy in Florida. It ensures a 100%2111 payment of your medical bills up to a specific coverage limit.
If you choose the $5,000 coverage limit for MedPay, your medical bills will be covered up to $15,000. That is, $10,000 PIP + $5,000 MedPay. MedPay co-pays 20% of the medical bills not covered by PIP.
Who and What Does MedPay Cover?
MedPay pays the insured’s medical bills, their family, and the passengers and pedestrians injured during the accident, just like PIP.
For instance, if you were injured in a friend’s car, injured when riding a bicycle, or a pedestrian, MedPay will pay the amount not paid by PIP, even if you were at fault.
As the name suggests, MedPay covers the hospital bills only. Unlike PIP, it doesn’t cover the lost wages as a result of the injury. Also, it doesn’t include other losses included in a personal injury lawsuit, such as compensation for pain and suffering.
With MedPay, it doesn’t matter if you’re at fault or not. It will still cover the hospital expenses of the people involved.
Repaying MedPay After Settling a Personal Injury Claim
Getting involved in a car accident is no fun, even if your bills will be paid. MedPay has the subrogation potential.
This means that the insurer can recover the money paid for the insured’s medical bills. In case your personal injury claim is settled, and the insurer seeks the money back, you’ll have to reimburse them.
However, if you hired a personal injury lawyer, the amounts reimbursed will be less the attorney’s fees and costs.
Also, MedPay can lose its right to repayment if they do not ask for it in writing, and if the person at fault is the same person whose insurance company provided the MedPay benefits. The insurance company is not likely to ask for reimbursement from its own insured.
What if You’re from a Different State but Get Hurt in a Car Accident in Florida? How Does MedPay Apply?
Florida is a famous tourist destination. Maybe you were here on a business trip or trip to Disney World.
If you get injured in a car accident, two state laws will be involved. If your state’s car insurance policy pays for your medical bills, the state’s law will likely determine if MedPay insurance has a right to make a subrogation claim.
Unlike MedPay in Florida, you don’t have to repay MedPay in some states.
For instance, if a North Carolina resident is injured in a car accident in Florida and their insurer in North Carolina pays for their medical bills, North Carolina law doesn’t require them to pay back the insurer if they settle the claim.
Should You Take MedPay?
PIP is already mandatory in Florida. So, do you really need MedPay?
The answer is different for different drivers. For drivers whose health insurance is excellent and has fewer deductibles, MedPay might not be useful.
However, if you don’t have health insurance or have one, but it’s not extensive or has many deductibles, you might want to consider MedPay. In situations where your PIP coverage won’t be enough to cover your medical bills, MedPay will offer some peace of mind.
MedPay may not be mandatory but can be a valuable solution for some drivers. Make sure you consider all factors before settling for a MedPay coverage.