MBN - Medical Payment - Quiz

Medical Payment Coverage in Auto Insurance

• Medical Payment coverage is an optional insurance add-on that covers medical expenses resulting from an auto accident.
• Its purpose is to provide financial protection for medical expenses resulting from an accident.

What is Covered by MedPay?

• Hospital bills
• Doctor's fees
• Ambulance fees
• Not typically covered: vehicle repair costs

Who is Covered by MedPay?

• Both the driver and passengers of the insured vehicle

Characteristics of MedPay

• It is not a mandatory component of auto insurance
• It has a predetermined limit
• It covers medical expenses regardless of fault
• It does not cover only the medical expenses of the driver

Coverage Limit in MedPay

• The purpose of a coverage limit in MedPay is to define the maximum amount the insurance company will pay for medical expenses

Relationship with Health Insurance

• If you have both health insurance and MedPay coverage, MedPay typically pays first for your medical expenses
• MedPay is not a required coverage in most states in the United States

Using MedPay for Others' Injuries

• You cannot use MedPay coverage to cover medical expenses for injuries sustained by others in an accident

Situations where MedPay is Particularly Useful

• When you're involved in a hit-and-run accident
• When you're involved in an accident and you don't have health insurance or have a high deductible