What is Medical Payments Coverage (Med-Pay)?
Medical Payments Coverage, also called Med-Pay, is typically insurance that you purchase along with your car’s liability insurance. Med-Pay will cover medical bills caused by an accident. These medical bills are submitted to your insurance company and it usually pays the medical providers directly. Insurance companies are required by Colorado law to offer at least $5,000 in Med-Pay when liability insurance is purchased. Most Med-Pay policies that we see are in the amount of $5,000, but they range from $1,000 to $100,000 depending on the policy.
Because Med-Pay policies are only $5,000—and hospital bills can be huge—you should consult with your attorney regarding which bills to submit to Med-Pay.