How to Decide Whether You Need Medical Payments Coverage

Car insurance features a variety of different components. All drivers are required to have liability coverage, so if you have a car loan, your lender will typically require you to get comprehensive and collision coverage. Beyond that, there are a few other types of coverage, which are outlined below.  

Do you need medical payments coverage? Here is what you need to consider when making that decision. 

1. What is medical payments coverage?

Medical payments coverage kicks in if you or your passengers are injured in a crash. Generally, you can use this type of coverage whether you or another driver caused the accident. 

2. Do you have health insurance?

If you have a comprehensive health insurance plan, you may not need medical payments coverage. Instead, you can just rely on your healthcare plan if you need medical attention after an accident. However, in some cases, you may want both types of coverage. In particular, if you have a high deductible or high co-pays on your health insurance, medical payment coverage can kick in and cover the difference. 

3. Do your passengers have health insurance?

In addition to thinking about your own situation, also consider whether or not your passengers have health insurance. If you frequently drive around friends or family members who don't have quality health plans, you may want to add this protection for their sake. 

4. Do you have savings for a funeral?

Medical payments coverage can also help you cover funeral expenses if you are in a fatal accident. If you have savings or have set up prepaid services with a funeral home, you may not need this type of coverage. However, if you don't have those elements in place and you want to ensure that your family is not burdened with funeral costs in addition to the stress of grieving you, you should consider this type of coverage. 

5. Do you have personal injury protection (PIP)?

Some states require PIP while others have it as an optional type of coverage. PIP overlaps with medical payment coverage, but it sometimes goes a step further by helping with extra expenses such as childcare after an accident or lost wages. If you're getting PIP, you may not need medical payment coverage, but you should still talk with your insurance provider to ensure you're making the right decision. 

6.  Are there many uninsured or underinsured drivers in your area?

Often, when you are in an accident caused by another driver, their insurance should pay for your injuries and the damage to your vehicle. However, if they don't have coverage or don't have ample coverage, you need to rely on your own policy. Medical payments can help to ensure you're protected. 

7. What is the cost?

Finally, look at how adding medical payments coverage affects your premiums. Typically, this coverage is relatively inexpensive, and it can give you a lot of peace of mind.