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What Is the Difference Between Med Pay and PIP?

If you are a responsible vehicle owner, then it is likely your car is insured. But how much do you really know about car insurance? Car insurance policies are protection plans that are intended to cover damages incurred to your vehicle. But they does not cover people. Nor do they cover others drivers and passengers involved in a car accident.

So how do you protect yourself from a lawsuit on the chance that you might cause a car accident that injures others? The answer is a third party protection plan, either in the form of Med Pay or Personal Injury Protection (PIP). Continue reading to learn more about each plan, the differences between them, and who to call for accurate industry advice.

Med Pay

Med Pay is a colloquial term for “Medical Payments Plan”, which is a separate insurance policy available to vehicle owners. It is a policy that covers the medical payments of all the passengers inside your vehicle if they are injured in a car accident, regardless of who is at-fault. It is NOT health insurance. It only covers medical payments incurred as a result of car accidents. The difference is MP covers your passenger’s medical payments as well. It is a great match for those who car pool regularly.

Common limits to these plans often average around $25,000. But it is important to know that Med Pay is based per vehicle. So if you have two vehicles, you will need two different policies to be covered. It is also important to understand that this does not include any other economic or non-economic losses, such as pain and suffering, lost wages, loss of limb, permanent disfigurement, prolonged physical therapy, and more. If you wish to have these covered as well, you’ll need to look into Personal Injury Protection, or more commonly known as “PIP.”

Personal Injury Protection (PIP)

If you are concerned about coverage for additional losses and damages, like the ones mentioned above, then you would need to consider a different type of coverage instead of a medical payments plan. One option is Personal Injury Protection, or PIP. This coverage is more comprehensive compared to Med Pay. Not only does it cover injuries and losses incurred as a result of a car accident, it goes above and beyond, covering more specific economic or non-economic losses. For instance, PIP will help with hospital bills, medical expenses, loss wages, mortgage payments, and more. It is more expensive than Med Pay, but not by much. And you do not need to have both PIP and Med Pay insurance. Choose one or the other if you are interested in extending your coverage.