Q & A: Should I purchase Medical Payment Coverage on my Automobile Insurance Policy?

Probably. If you can afford it, most people should carry some amount of Medical Payment Coverage, also known in as Med-Pay for short.  Medical Payment insurance pays for automobile accident related medical bills for you, your family living in your house and persons riding in your car, regardless of who is at fault for the crash. Medical Payment coverage is surprisingly cheap; I pay only $10 per month for $5,000.00 in coverage.

If you have a high deductible health insurance plan or you have no health insurance, you should certainly purchase medical payment coverage. lf you have gold-plated health insurance coverage with very low co-payments and deductibles, you may not need Med-Pay coverage much.

How much Med-pay coverage should you purchase?

For most people, the answer is $5,000.00. If you have no health insurance coverage you may consider purchasing more coverage such as $10,000.00 or more. However, in Arizona, the return on investment  to the consumer is often lost when purchasing medical payment coverage above $5,000.00. This is because Arizona law - A.R.S. § 20-259-01(1)(J) allows the automobile insurance carrier to claim a lien on all amounts paid in excess of $5,000.00 against the at fault party's insurance. Thus, the Med-Pay can get reimbursed and reduce a personal injury settlement from the at fault-insurance carrier. So the person who paid for coverage in excess of $5,000.00 doesn't get a lot for their premiums money.

Jay Ciulla is a Phoenix personal injury lawyer. Call (602) 495-0053 for a free initial consultation.