There is a lot of confusion on medical payments insurance. Many of our prospects and customers ask us if they need this coverage or not. In this entry we will go over what Medical Payments (“Med Pay”) coverage is and why we recommend it.
Buying medical payments coverage may seem like overkill for someone who carries health insurance, however, if you have a minor injury medical payments will kick in with no copayments or deductibles if you are hurt in an accident. Medical payments also covers your passengers for their minor injuries.
If the other driver is at fault their insurance should pay for your injuries, but bodily injury liability coverage could take several months to resolve, especially if there is litigation. Meanwhile your medical bills stack up and can go unpaid until the claim is settled.
By adding Med Pay coverage to your food truck auto insurance policy, you can make sure medical bills get paid quickly.
Important features of Med Pay insurance:
The cost can be very low, often less than $3 a month.
Coverage is typically for $5,000 per person.
There are no deductibles or copays.
Provides broader coverage than most health insurance, including extra expenses like dental care, ambulance fees, and chiropractic care.
MedPay protects the policyholder and family members in case of vehicle-related accident while riding public transit, walking, or cycling.
Covers other drivers of the insured vehicle.
Protects passengers of the insured vehicle regardless of fault.
Filing a Claim Under a MedPay Policy
If you are injured in an auto accident it’s important to seek coverage as soon as possible. After you are safe and able, here are some steps to filing a claim.
Notify your car insurance carrier of your injuries as soon as possible to get the claims process started.
Provide the medical service with any and all information you have about the accident including parties involved.
Ask the medical service provider how they require payment so you are well prepared. They may require payment up front or bill through your health insurance.
If you choose to be represented by an attorney they can assist you with dealing with insurers and health care providers.
Should You Buy Medical Payments Insurance?
Because the cost is low to purchase Med Pay and chances are good you will need it in an accident, it makes sense to always include this vital coverage. You want to take care of yourself and your food truck employees if they are injured in an accident. If you don’t have health insurance coverage for yourself or your family, Med Pay is an affordable way to make sure medical bills will get paid after a car accident.
Some states require you to purchase Personal Injury Protection (PIP) insurance. Like Med Pay, PIP will cover health care costs for you, your family and your passengers. Unlike Med Pay, PIP insurance can cover additional expenses outside of medical bills such as lost income and child care expenses. Keep in mind that PIP can carry a deductible and could require you to pay a percentage of medical bills.
Med Pay and PIP insurance can work together. You can use Med Pay to pay the deductibles and coinsurance that you are responsible for under PIP. If your medical bills exceed the limits of your PIP insurance, Med Pay can cover the difference.
If you have questions about Med Pay or PIP and if it’s right for your food truck business, please feel free to contact us. We have food truck insurance professionals ready to help!