I was shocked in a meeting the other day. The person i was meeting with told me that a popular insurer does not like writing Med Pay in their auto insurance policies.
The person was a relative of the lady i was meeting with. She told me if a client asked for Med Pay, and she sold it to them, her commission was not as high. I can only assume a lot of other insurers follow this same suite. The insurance company we were talking about is one of the big 3.
What is med pay?
Med pay is medical insurance in the event you are hurt in a car accident. It covers you and anyone in your car that is injured as a result of the auto accident. Med pay is a good thing to have regardless if you have health insurance or not.
Med Pay is good to have as a safety net, it would be your primary payer of your medical bills. If you don’t have med pay, you may pay your own bills and may be reimbursed by the insurance company at a later date, or you will have to treat under an attorneys lien.
Who takes med pay
Not all doctors take med pay because of third party billing. Third party billing is when your doctor bills the auto insurance carrier directly. It is a rare occurrence that your primary care doctor will bill med pay. Doctors who deal with car accidents will accept med pay and even do all the paperwork for you. Every doctor on accident doctor will accept med pay.
How does med pay help me
It helps because your medical expenses are already paid. Let’s say you have a personal injury case with an attorney. Your medical bills will already be paid an not have to come out of the settlement. And, you can get the medical care you need and do so without the need for an attorney’s lien. It is easier to get medical care after a car accident with med pay than without.
How much Med Pay do i need?
How Much you need depends on how much you can afford. Med pay is not really expensive compared to the benefits it offers. Most auto insurance companies offer med pay in increments of thousands
such as:
- 1,000
- 2,500
- 5,000
- 10,000 and so on
Med pay is something you should consider if you don’t live in a pip state. Pip states have required personal injury protection, so there is no need for med pay. Pip, would cover your medical expenses just like med pay. So, you may just be throwing your money away if you lived in a pip state and carried med pay. You need to get as much medical payments as you can afford.
Do i need med pay if i have health insurance
Absolutely!!!. The reason is most doctors still wont bill health insurance if they find out you have been involved in an auto accident. Furthermore, they will require you to pay out of pocket for any services they provide you. Your PC just isn’t structured to bill med pay or pip. Most health insurance will do you no good in the event of an auto accident. If you are able to use your health insurance, do so. However, in most cases i have run across, very few doctors visits have been paid for by Health Insurance.
Seeing a normal doctor with med pay
Some auto insurance companies will reimburse you if you see your PC. However, you have to pay out of pocket first, then the insurance company will reimburse you. This does no help you out too much, does it? If you are rushed to the ER or have to see a specialist, a 3k med pay policy is gone into the wind. That leaves no money for any future doctors visits in the event you need them. The increments of med pay usually get cheaper the higher they go.
What does med pay cover?
- ER visits
- Ambulance
- ER doctor
- Follow of visits with an accident doctor
- X-Rays
- MRI
- CT-SCAN
- If a vehicle hits you and you are riding a bicycle
Does the insurance company discourage its agents from selling med pay
Now, that is the big question. Does the auto insurance company directly discourage its agents from selling or even telling their policyholders or future policyholders about Med Pay.
My agent tried to discourage me from getting medical payments on my auto policy when i changed auto insurance companies. I won’t tell who my insurance company is, but it is in the top 3. She was telling me that my Health insurance would cover any medical bills in the event i was in auto accident.
Little did she know, i have been in the personal injury industry for over 20 years. And, i can count on one hand how many times the health insurance company paid for someone’s medical expenses resulting from an auto accident.
Commissions
I have heard that the agents commission is less if they sell med pay with the auto policy. So, essentially they are discouraged from even offering if they won’t make as much money. Im sure they are some auto insurance companies that will tell you about it, but i have yet to find one. Discouraging people from getting something that will help them in the event of an accident is downright wrong. You buy auto insurance for protection, that’s what insurance is. Too bad some of the guys only care about money instead of protecting you.
Lying to you
Even if you know what you’re talking about, the agent may discourage you from buying med pay. The lady i spoke with outright told me all sorts of things about why i did not need med pay. She told me if i had health insurance i had nothing to worry about. I did ask her if she had ever been injured in a car accident, she said no.
You will have a tough time getting to see a doctor with your health insurance after an auto accident. It’s just not going to happen, i don’t care what your insurance agent says. They are in the business of selling you the auto insurance that will make them the most money on commissions. It’s your job to know exactly what you want and need before you even walk in the door.
Do you trust your auto insurance agent?
Do you trust your agent is doing the right thing for you and your family? If not, find a new insurance company or agent. If you lack confidence in the person selling you anything, you need to find someone new. It is their job to explain all of your options and give you the best coverages for you and your family. If they leave out med pay, they are not explaining all your options. Furthermore, they are not protecting you or your family.
What you can do about it
Call your agent and add Med Pay if you do not live in a PIP state. And, ask them what the difference in premium will be. You may be surprised to find out that med pay is not that expensive compared to what you get in return. Do not let the agent discourage you from getting medical payments. In the event you have a car wreck, you will be glad you have medical payments on your policy.
Make sure you and your family are protected from high medical expenses in the event of an accident. Med pay will cover you and anyone in your car, even if the car accident was your fault.