Insurance Premiums and Med Pay

Will filing for coverage under the Medical Payments (Med Pay) portion of your policy allow your insurance company to raise your auto insurance premiums?

In short, it should not!  But there’s more to that answer.

Med Pay is coverage that is optional and additional to any mandatory liability policy in North Carolina.  In other words, you don’t have to have it, but you can get it if you want to pay for it.  It simply offers to pay up to the limits of that Med Pay coverage (normally between $500 and $5000, but it can vary) for any medical expenses incurred as the result of an auto accident that involved an insured.  This is considered n0-fault coverage because it covers any insured in any auto accident regardless of fault, per the policy language.

In North Carolina, insurance carriers are only allowed to raise your individual rates in the even that an insured is convicted of a moving violation or causes an accident in which they have to pay damages.  You will note that filing for Med Pay coverage is not in that list, so this shouldn’t result in a rate increase for you.  Of course, insurance companies are generally in my experience just a step up from pirates, so might they find some nefarious way to charge you more?  Sure, it’s possible, but remember that you’re always free to change companies, too.  Moreover, I always tell people that while something might be illegal, that doesn’t always necessarily stop people from doing that thing.  As a result, I can never answer this question with a definitive “no,” only a qualified “no.”

Med Pay is extremely helpful to people in auto accidents who need immediate funding of their treatment.  So I always urge clients that have it to use it.  Otherwise, why are you paying extra for it?

If you have questions about this stuff, call me!  I’m super-available.  919-929-2992