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Medical Expense Benefit Coverage on an Auto Policy

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Medial coverage

 

This post is about auto policyholders in Pennsylvania.  It may also obtain to policyholders in other states but I cannot say for sure.  If you are reading this and have a policy in a state other than PA, you should check with your agent to see how Medical Coverage works for you.

 

Medical Expense Benefit Coverage on an Auto policy is a supplemental coverage that provides Personal Injury Protection (PIP).  You select the amount of coverage ranging from $5,000 up to the Extraordinary Medical Benefits coverage of $1 Million!

 

What Does the Medical Expense Benefit Coverage pay for?

The coverage provides funds (up to the limit you select) for any person listed on your policy as well as any person not listed on your policy but that resides at your household who is injured in an automobile accident.  Even if you have an adult that lives with you who does not have an auto insurance policy would be covered.  All resident family members are covered under this benefit.

 

Your Medical coverage pays First!

It doesn’t matter if you are in At-Fault accident or a Not-At-Fault accident.  If you are injured in any way due to a vehicle, your auto policy will pay first.  Even if you are a pedestrian and are hit by a vehicle, your policy pays first.

 

What happens when you reach your Medical Coverage limit.

If you are in an At-Fault accident and your injuries cost more than the limit on your policy for Medical coverage than you will need to submit all future bills to your primary health insurance carrier.

If you are in a Not-At-Fault accident and your injuries cost more than the limit on your policy than you will go through the other driver’s Liability coverage.  Once the limits from their policy are reached than you will need to go through your primary health insurance carrier.

 

Why You Should Increase Your Medical Limits to at least $100,000.

People are carrying lower limits these days.  Often, people just want to get a basic policy with low liability limits just so they are legal to drive.  This is not good for the rest of us.

Say you have $10,000 for medical coverage on your policy and you are hit by someone with low liability limits.  Your policy would pay the first $10,000 and then the other driver’s policy would pay the next $15,000 (PA state minimum).  $25,000 isn’t a lot of money in the medical field.

At that point you would need to go through your Primary Medical carrier.  You will have to pay deductibles, co-pays. possible hospital bills and bills for medication.  All of this and it wasn’t even your fault.

If you were to increase your Medical Limits to $100,00 you will find yourself in a much better position.  Sure, it’s possible that even $100,000 won’t be enough but it’s a heck of a lot more than $10,000!

 

How much does it cost to increase from $10,000 to $100,000?

Every policy is different but generally the cost is only about $3-$4 a month.  Well worth it for that coverage.

 
My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies. Please contact me at my office, 610-948-4830 or Email Me for any insurance related questions or concerns. You can also visit the Ron Black Agency website or like us on Facebook! Thank you for stopping by, have a great day!

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