Can I Drop Med Pay If I Have Good Health Insurance
In most states you can drop medical payments coverage if your health plan covers you well, but a few states require it on every policy.
Yes, in most cases, if your state allows it
You can usually drop med pay from your auto policy if your health insurance already covers your medical bills after a crash. Med pay was built to fill gaps for people without health coverage, or with high deductibles they can't meet right away. If your health plan already handles hospital visits, follow up care and the deductible that comes with it, med pay may be paying for something you won't need.
A few states require med pay or a similar coverage on every policy, no matter what health insurance you carry. Check your state's requirement before you ask your insurer to remove it. If your state doesn't require it, the decision comes down to how well your health plan would actually cover a car accident, not just whether you have one.
What your health insurance actually covers after a crash
Good health insurance isn't the same as good coverage for a car accident. Look at your deductible and your out of pocket maximum, because those apply before your health plan pays much of anything. Med pay often covers that gap, including the deductible itself, with no waiting and no claim dispute.
Health insurance also usually doesn't cover a few things med pay does. Lost wages, in some cases. Medical bills for passengers in your car who aren't on your health plan. A funeral expense, if it comes to that. If any of those apply to how you'd use your car, that's worth weighing against what you'd save by dropping med pay.
Also check whether your health plan has any exclusion for injuries covered by another insurance policy. Some health plans will deny a claim or seek reimbursement if your auto insurer should have paid first. Call your health insurer and ask directly whether that applies to you.
What people get wrong about med pay and health insurance
The biggest mistake is assuming med pay and health insurance cover the same ground, so one makes the other redundant. They often don't overlap as much as it seems. Med pay pays out regardless of fault and usually faster than a health insurance claim, which can matter if you need care right after an accident and don't want to wait on a claim decision.
Another common mistake is dropping med pay without checking what it actually costs on your policy. For many drivers it adds very little to the premium compared to what it would pay out. If the cost is small, the health insurance comparison may not be worth the trouble.
People also forget that med pay covers passengers in their car, not just themselves. If you often drive family members or friends who have their own health coverage questions, med pay protects you from being the reason their medical bills become a dispute.
Questions people ask about this
Does med pay cover passengers in my car?
Yes, med pay typically covers anyone injured while riding in your car, regardless of whether they have their own health insurance. This is one of the main reasons drivers keep it even with good health coverage of their own. Check your policy's declarations page to confirm who is included.
Will my health insurance pay for a car accident injury?
In most cases, yes, but check your deductible and out of pocket maximum first since those apply before your health plan pays much. Some health plans also have rules about injuries caused by someone else, including a right to be reimbursed later. Ask your health insurer directly how they handle auto accident claims.
What's the difference between med pay and PIP?
Med pay is optional in most states and covers medical bills only, while personal injury protection, or PIP, is required in some states and can also cover lost wages and other costs. Which one appears on your policy depends on your state. Check your declarations page to see which you have.
Can I add med pay back later if I drop it now?
Usually, yes, you can ask your insurer to add it back at your next renewal or anytime during your policy term. There's typically no waiting period or special requirement to requalify. Ask your agent or insurer directly about the process and whether it changes your premium.
Does dropping med pay lower my premium by much?
It depends on your insurer and your state, since med pay is usually a small part of the overall premium. Ask your insurer for the exact dollar difference before deciding, since the number varies by policy. For some drivers the savings are modest enough that the coverage is worth keeping regardless.
See what dropping or keeping med pay would actually change on your policy.
Pull up your current auto policy and find the med pay line, then call your health insurer and ask what your deductible and out of pocket maximum would be after a car accident. Ask specifically whether your health plan has any reimbursement clause for accidents involving another insurance policy. Check your state's minimum coverage requirements, since a few states require med pay or a similar coverage regardless of your health plan. Once you know what your health insurance would actually cover and what your state requires, call your auto insurer and ask what dropping med pay would change on your premium. Get that number in writing before you decide anything.
