KNOW YOUR MED PAY INSURANCE LIMITS IN YOUR AUTO INSURANCE POLICY

By Ben Sessions on March 3rd, 2016 in Car / Auto Accident

DON’T DRIVE AROUND ANOTHER DAY WITHOUT CHECKING ON YOUR MEDICAL PAYMENTS COVERAGE LIMITS IN YOUR AUTO INSURANCE POLICY

Nobody likes to think about and plan for an accident. However, part of being an adult is planning for the unexpected. Even if you have health insurance, part of your planning should include med pay insurance within your automobile insurance policy.

Medical payments coverage or med pay coverage is a must-have type of insurance coverage for many people. Because it is so cheap and driving is one of the most risky activities that we engage in, most people should have med pay coverage, and most people should have a lot of med pay coverage. 

In Georgia, med pay insurance coverage are typically written in policy amounts of  $1,000, $2,000, $5,000, $10,000, $25,000, and $50,000. Med pay insurance provides money to pay for necessary medical treatment and funeral expenses following a car accident. O.C.G.A. § 33-34-2(1) states, “Medical payments coverage includes any coverage in which the insurer agrees to reimburse the insured and others for reasonable and necessary medical expenses and funeral expenses incurred as a result of bodily injury or death caused by a motor vehicle accident, without regard to the insured’s liability for the accident.”

MEDICAL PAYMENTS COVERAGE CAN PAY FOR MEDICAL EXPENSES EVEN IF YOU WERE AT FAULT

Here is the real kicker to med pay insurance coverage applicable following a car accident: the coverage provided under a med pay policy is payable even to people that caused the accident.  It is a no-fault insurance coverage. 

(a) All insurers writing private passenger automobile insurance in this state shall file rates and forms for medical payments coverage for a limit of at least $2,000.00 but may file rates for higher or lower limits. The requirement for filing forms and rates under this subsection shall not be construed as a requirement for the offering or quoting of medical payment coverages to insureds or as authority for the Commissioner to require the offering or quoting of such coverage.

(b) Insurers may offer other optional coverage including combinations of sublimits and interests restricted to named insureds and resident relatives. Insurers may make collision, comprehensive, and loss of use coverages available as separate individual coverages and subject to differing levels of deductibles at the request of the policyholder.

(c) Any rule or regulation promulgated which expands or conflicts with this Code section shall be null and void.

O. § 33-34-3.1.

April 10, 1996

TO: All Property and Casualty Insurers Licensed To Conduct Business in the State of Georgia

FROM: John W. Oxendine Commissioner of Insurance

DATE: April 10, 1996

RE: PRIVATE PASSENGER AUTOMOBILE INSURANCE MEDICAL PAYMENTS

It has come to my attention that consumers are having difficulty in receiving comparable private passenger automobile insurance quotes due to the inclusion or exclusion of medical payments coverage without adequate explanation.To avoid this confusion, you are hereby directed to instruct all of your licensed agents to quote private passenger automobile insurance with and without medical payments coverage and to provide an explanation of the coverage. This action is being taken to ensure that all Georgia consumers receive information sufficient to make educated decisions regarding the merits of this coverage.