There are a lot of different insurance policies. After all, there is plenty going on in our lives that requires (or at least needs) coverage. Perhaps the scenario we encounter most often is driving our cars. We know that California, as well as most other states, mandates a minimum level of liability insurance to operate a vehicle on the roads. That includes bodily injury liability.
The bodily injury coverage you are required to carry will help pay for medical treatments for others if you were at-fault. This insurance will pay up to the limits of your policy. If you are carrying the minimum, you can expect to be covered up to $15,000 for each person up to $30,000 for one incident. This is “other guy” coverage and does not apply to your injuries.
PIP doesn’t look at fault. Where bodily injury coverage only applies to the “other guy,” your injuries will be covered under PIP. This coverage can include Hospital and doctor’s bills, prescriptions, in-home services and rehabilitation, lost wages and funeral expenses.
Med-Pay is purchased on a “by vehicle” basis, so if you have two or more vehicles, you must purchase coverage for all. One of the biggest benefits for carrying Med Pay is that it covers all passengers in your vehicle. The maximum coverage amount is per person and not an aggregate total. Remember that Med Pay only covers injuries pertaining to a particular accident and is in no way a substitute for personal health insurance. In fact, many insurers require that Med Pay limits be exhausted before your health insurance kicks in.
While you must carry bodily injury liability, there are definite benefits to purchasing Med-Pay or PIP coverage as well. We all know how expensive medical care and associated treatments can be. But there are differences in the two policies that your insurance professional will explain to you. Getting you the correct coverage at a price you can afford is their top priority.