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Why You Should Use Your Med Pay Coverage (Even If Your Insurance Agent Tells You Not To)

Written by jeffreyhoward on . Posted in North Carolina Law Blog.

One of the most common things I hear after a car accident is this:

“My insurance agent told me not to use my MedPay.”

That advice is almost always wrong.

If you paid for Medical Payments coverage (Med Pay), you should use it. That’s what it’s there for. And refusing to use it because someone says “you don’t want a claim on your policy” makes about as much sense as this:

Imagine you had life insurance. You get murdered. Your family says, “Well, yes, he had life insurance… but we don’t want to collect it. We’d rather make the murderer pay.”

That’s ridiculous.

They’re not mutually exclusive.

You can collect life insurance and pursue the wrongdoer. Just like you can use your Med Pay and pursue the at-fault driver.

What Med Pay Actually Is

MedPay is no-fault coverage under your own auto policy. It pays medical expenses after an accident regardless of who caused it. It doesn’t require a lawsuit (at least it shouldn’t). It doesn’t require a fight (see last caveat). It’s a contractual benefit you purchased.

You are paying premiums for that benefit every time you pay your auto insurance bill.

Why would you not use something you’re paying for?

The Insurance Information Institute explains that Medical Payments coverage is designed to pay medical expenses for you and your passengers after an accident, regardless of fault:
👉 https://www.iii.org/article/medical-payments-coverage

That’s not a loophole. That’s the purpose.

“But My Agent Said It Might Raise My Rates”

Here’s where things get interesting.

Insurance agents are typically compensated through commissions based on the policies they sell and retain. Their income can be affected by underwriting performance, loss ratios, and retention metrics. If claims increase, profitability can decrease. Lower profitability can impact agency compensation structures.

In other words, agents often have financial incentives aligned with keeping claims low.

I’m not saying every agent is acting in bad faith. Many are good people. But understand this:

They are not your fiduciary in a personal injury claim.
They are part of the insurance ecosystem.

Using Med Pay can sometimes affect underwriting decisions at renewal. That’s true. But so can not using it and letting medical bills go unpaid, damaging your credit, or forcing you into collections.

You have to weigh real-world consequences—not hypothetical rate adjustments.

And remember, in NC, they can ONLY raise your rates for things that you’ve done in TWO scenarios: You’re convicted of a moving violation, or YOU cause an accident resulting in payment from the policy. When YOU do not cause the accident, they can’t raise your rates for claims.

If you don’t use MedPay:

  • Your providers may send bills to collections.
  • Your credit may take a hit.
  • You may feel pressured to settle early just to get bills paid.
  • You may appear less “injured” because there’s limited treatment documentation.

If you do use MedPay:

  • Bills get paid promptly.
  • You get appropriate care.
  • Your claim is properly documented.
  • Financial stress decreases.

You bought the coverage. Use it.

The Bottom Line

Insurance companies sell products. Med Pay is one of them. It’s not charity. It’s not a loophole. It’s a contractual benefit you paid for.

Telling someone not to use Med Pay after they’ve paid premiums for years is like telling a family not to collect life insurance because “we’d rather just pursue the murderer.”

They are not mutually exclusive.

If you’ve been injured in a car accident in North Carolina and you’re unsure whether to use your MedPay, call me. I’ll give you a straight answer based on your situation—not on anyone’s commission structure.

📞 Call me if you’ve been injured in a car accident and have questions about MedPay.
🖥️ https://jeffreyhowardlaw.com