Medical Payments Coverage – USE IT, DAMN IT.

Written by jeffreyhoward on February 28, 2020. Posted in North Carolina Law Blog.

In North Carolina auto insurance, you have an option to purchase extra, no-fault coverage called Medical Payments coverage, or “Med Pay” as we generally call it in the biz. It’s like a tiny, limited health insurance policy for use with treatment of injuries associated with an auto accident. It comes in various increments, but normally we see $500, $1000, $2000, $5000, and sometimes $10,000, but you can have much more.

As mentioned, this is no-fault coverage. You can use it whether the accident is your fault or not. Where I tend to have frustrating conversations about this coverage is when a victim comes to me with an injury claim and they have Med Pay but don’t want to use it. Here’s the deal:

If you have Med Pay, you’ve PAID for it. It’s yours. The only trigger to get to it is suffering an injury by auto accident that requires treatment. It has nothing to do with fault, as it’s no-fault coverage. So using it WILL NOT trigger an automatic rate increase on your auto policy. If you are paying for it and have the opportunity to use it and refuse to, then I can only assume you think that your auto insurance company is a charity in need of donations because that’s EXACTLY what you’re doing. You’re giving them money for nothing in return. If you’re not going to use it, just cancel the coverage because there’s no point giving away that money for nothing. Or you could take my advice and use the product that you’ve already purchased.

Think about it this way: Let’s say you’ve had the same policy for 5 years, and let’s assume your $500 Med Pay costs you $50 every 6 months. At that point, you’ve paid $500 for your Med Pay. When you are in an accident, you can get that $500 back now and there’s no reason you shouldn’t. You’ve paid it in, and now the coverage is triggered. You’re entitled to it. Choosing not to use that coverage only benefits your insurance company. And trust me, they don’t need your help.

Call me if you need any guidance on this or any other personal injury issue. 919-929-2992.