Medical Payments Coverage and PIP Car Insurance
Medical coverage on your car insurance policy may provide double coverage with your health insurance plan, but it’s probably wise not to drop it in certain situations. There are some benefits to medical coverage versus health insurance, however, PIP car insurance provides the most coverage at an additional cost.
For instance, medical coverage generally pays $1,000 to $5,000 in medical expenses for each injured passenger in your car, regardless of fault. Although this sounds like insurance protection everyone should have, most drivers already have it covered through their health insurance plan, duplicating coverage from your health insurance company who is probably offering better pricing and quotes than your car insurance company on this coverage.
Your health insurance company will pay those hospital bills if anyone in your family is hurt, and probably provide better quality healthcare than your car insurance company.
Medical Cover Payments versus Health Insurance Coverage
However, in certain situations with a family who has cheap health insurance coverage, it may be prudent for a driver to keep some medical payments coverage just to cover the health insurance deductible and any out of pocket expenses that may be a result of a very high deductible health insurance policy.
Additionally, the medical payments coverage option in your car insurance protects you against passenger’s in your car who may not have health insurance. In this situation, if an accident were to occur and the at-fault driver does not have car insurance, is underinsured, or their insurance company drags their feet paying the medical bills, your medical payments coverage could help cover your passenger’s medical expenses. This can be valuable if your passenger happens to be a loved one who no longer shares insurance plans with you.
Just to give you an idea, the average American family with a teenage daughter pays about $100/year to include $5,000 of medical payment coverage in their car insurance coverage, but about $40 per year for a $2,000 coverage limit. This is a $60 savings that could or could not be worth it to your family to save.
PIP Car Insurance
Personal injury protection (PIP) is a car insurance policy option that reimburses drivers for bodily injury expenses during a collision or incident. Like medical coverage, PIP coverage and payout is not determined based on fault, and pays for the medical expenses of the passengers in the other party’s car. Though similar, medical payments coverage and PIP car insurance have some distinct differences.
PIP Car Insurance versus Medical Payment Coverage
Medical payment coverage and PIP both protect the insured from medical liability, however, personal injury protection takes a step further by offering additional insurance coverage such as the ability recoup lost wages, funeral expenses, and professional needs, including home care, nanny, nurses, physical and mental therapy, etc. PIP car insurance also protects all the passengers in your vehicle, and includes pedestrians hit by a vehicle.
Compare Car Insurance Rates Online
Research and compare affordable car insurance quotes available online at MyCarInsuranceRates.com to find cheap car insurance rates. You can choose from plans with or without PIP coverage and see what car insurance company makes sense for you and your family. Getting the best free car insurance quotes will help you make the right decision on your next car insurance policy purchase.
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