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How Does Medical Payment Insurance Work?

Written by Jared Staver

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Jared Staver is a Personal Injury Lawyer based in Chicago, Illinois and has been practicing law for over 20 years.

Jared Staver

CATEGORY: Auto Accidents, Insurance, Personal Injury


After being hurt in a car accident, you need help with the bills. Whether it is your health insurance, your auto policy, or the other driver’s coverage, you need someone’s insurance to step up and pay – particularly when these medical costs are someone else’s fault.

When money is an immediate factor, Medical Payment Insurance (MedPay) or Personal Injury Protection (PIP) is exactly what you need. These types of auto insurance policies can cover various medical expenses following an accident, ensuring you do not incur a significant amount of debt.

If you were in an auto accident and need help covering the expenses, contact a lawyer of Staver Accident Injury Lawyers, P.C. at (312) 236-2900.

What is MedPay?

MedPay is a type of auto insurance that pays for medical expenses associated with personal injuries arising from an accident. It is not the same as auto liability insurance or health insurance. Instead, it steps in to pay medical costs that may not be covered by your health insurance, when you do not have health insurance, or before you have an insurance or personal injury settlement. This type of coverage kicks in quickly, ensuring your medical bills are paid before you have to wait for a slow-coming auto insurance settlement or jury award. MedPay covers medical expenses for not only you, as the policyholder, but also passengers and family members who were in the car at the time of the collision. This type of coverage covers costs no matter who was at fault for the accident and has no deductible or co-pay.

MedPay insurance covers a number of of medical expenses arising from a collision, including:

  • Health insurance deductibles and co-pays
  • Ambulance fees
  • Emergency department fees
  • Physician fees
  • The cost of a hospital stay
  • X-rays and scans
  • Surgery
  • Prosthetics
  • Dental care
  • Funeral expenses

Your MedPay insurance pays your medical expenses immediately up to your policy limit, drastically reducing how much you pay out of pocket following an accident.

What is PIP?

PIP coverage is similar to MedPay. It will cover the medical costs directly related to your injuries without any concern as to who caused the accident. However, it covers additional expenses beyond MedPay. PIP coverage will also pay for less-directly-related expenses like rehabilitation, mental health care, other professional services, lost wages, and even necessary child care. The exact costs covered by your PIP insurance will depend on your policy.

Is it Required?

Illinois does not require drivers to carry MedPay or PIP insurance. Illinois only requires liability insurance up to $25,000 for the injury or death of one person, $50,000 for the injury or death of two or more people, and $20,000 for property damage. However, while neither of these types of coverage are required, they can be incredibly helpful after an accident.

How Does it Work?

If you have MedPay or PIP coverage, you should immediately call your insurer following an accident. Your policy cannot kick in if your insurer is not notified of the collision and your injuries. You will also need to file a formal claim with your insurer, which can be a complicated process. You should work with a lawyer to cut through the red tape and make sure you benefit from the coverage you’ve been paying for.

In regard to MedPay or PIP coverage, how it works will depend on whether you are using it as your primary or secondary insurance. For instance, if your MedPay is used first, it will cover the medical costs up to your policy limit and you will not have to pay any out-of-pocket expenses. If it is secondary, you can use it to reimburse you for the co-pay and deductible you had to pay under your health insurance.

Contact a Lawyer Right Away

If you are not sure how to use your MedPay or PIP insurance, contact Staver Accident Injury Lawyers, P.C. immediately. We will work with your insurance provider to ensure your medical bills are paid quickly or that you are reimbursed. When you have paid premiums for MedPay or PIP coverage, you deserve to benefit as soon as possible. Additionally, we will help you file a third-party claim or a personal injury lawsuit to recover from the driver who caused the accident and your injuries. By working with the other driver’s insurer or filing a personal injury claim, you may be able to recover for your property damage, medical costs, lost wages, pain and suffering, disability, and disfigurement.

Call Staver Accident Injury Lawyers, P.C. today at (312) 236-2900 to schedule a consultation.

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(312) 236-2900
(312) 236-2900