Medical coverage on auto insurance policy

[bowlofturtle]

Looking over my statements and I notice i was paying $25/year for $5000 medical payment coverage on my auto premiums. Not really complaining but I was thinking this might not be needed, i'm not hurting for money but $25 is $25.

I have the normal 100/300/100k full coverage.

How i understand it, i get into any accident and my insurance would pay out $100k towards the party involved. I know medical stuff adds up quick BUT what does my $5k coverage do then. Is that just pointless coverage? This is how i'm seeing it. If that is the case... i think i can bump up the coverage to the next level 300/500/300 (if such thing) for the amount of $25/year. Wouldn't that make more sense?

Unless this $5k is instant payout of something.

 

[CKN]

I assume everyone in my car is covered under some sort of medical coverage. And with Obamacare that certainly should be the case. I have not had the coverage on my policy for several years.

I guess if you let a homeless people ride in your car they might not be covered-other than that your probably pretty safe.

 

[A_A_G]

The $5k medical payments coverage is for injuries to you. Your 300/500/300 are coverages for damages/injuries you cause to other parties.

Are you really going to complain about $2/month?

 

[CKN]

Originally Posted By: A_A_G
The $5k medical payments coverage is for injuries to you.
Your 300/500/300 are coverages for damages/injuries you cause to other parties.

Are you really going to complain about $2/month?



Then if you have medical coverage already-it is double coverage regardless of the cost.

 

[The_Jeff]

Read your health insurance policy and see if it covers car wrecks, and who is primary. IIRC the car insurance is primary.

It can actually be worse having redundant insurance as they'll fight each other instead of paying.

 

[Nate1979]

It's not double coverage if you have a deductible on your health insurance (and max out of pocket). This helps cover that gap.

 

[Donald]

When you file a medical claim they will ask if it was an accident and if so they will try to get the responsible person for the accident to pay.

 

[Oregoonian]

Originally Posted By: Nate1979
It's not double coverage if you have a deductible on your health insurance (and max out of pocket). This helps cover that gap.

Bingo.....helps cover the deductable on your insurance . IMO.....its well worth having and the cost is reasonable.

You could have gotten the answer if you had just called your insurance agent.

 

[OneEyeJack]

Medical payments coverage makes life easier in the ER after an accident.

With Obamacare as the law of the land many have large deductibles and co-pays and this coverage can help.

The annual deductible on my supplemental policy for twice the annual premium over my previous policy under Obamacare went from zero to $6K. So, I carry medical payments on my auto insurance.

 

[DBMaster]

My daughter was in a car with three friends last year. They were hit head on by a drunk driver going the wrong way on the highway. He had decent insurance. The car was owned by the used car dealership where he worked and it had decent coverage. Both policies paid out in full and still left expenses unpaid for my daughter. She wasn't even on my auto policy (on the ex wife's who decided she couldn't afford PIP or underinsured motorist coverage). Since I was paying her expenses while she was in college MY auto policy paid the PIP and underinsured limits to my kid. I'll never go without it. In fact, I increased my PIP from $2,500 to $5,000 because of this.

 

[BigD1]

My son was just in a head on collision, and he had 2,000 medical pay. The accident was not his fault. His insurance company said to send in the emergency room bill, and any other medical bill he had to pay out of pocket. The emergency room bill is going to cost more than $2000 I figure because he had to have a CAT scan.

Anyway, I think 5,000 for $25 is a keeper.

 

[bowlofturtle]

Originally Posted By: Oregoonian

You could have gotten the answer if you had just called your insurance agent.


These online only guys are horrible at explaining stuff, language barrier. But they have some of the cheapest rates.

Originally Posted By: CKN
Originally Posted By: A_A_G
The $5k medical payments coverage is for injuries to you.
Your 300/500/300 are coverages for damages/injuries you cause to other parties.

Are you really going to complain about $2/month?



Then if you have medical coverage already-it is double coverage regardless of the cost.



The $2/month is not my complaint, its the possible double coverage.



The late 2 post about the poster's children getting into accidents sealed the deal. The cost isn't much but when i was intentionally reading it, it felt like i was paying extra. Kinda like if i'm home 23hours of the day, i'm paying for cable internet and 10gb of cell phone internet. But i guess that one hour i'm out, i might need to google something on the fly.

I do have a high deduct health plan now with a HSA tied to it, the deduct is right near $5k so that would work out nicely.

 

[A_A_G]

Have you dealt with injuries in a car accident and hospital bills? It is a royal PITA. Your health provider will say they are secondary and that your auto insurance is primary. I haven't dealt with it, but my brother did.

For $25 a year, it's a no brainer to have it.

 

[04SE]

Can you invest your 'savings' for a few years to cover the cost of what you are not buying?

In this instance, you can't.

I changed my deductible on my auto policies from $500 to $1,000. The payoff was at year 4 or 5. I now have saved enough from paying lower premiums to cover the difference in deductible.

You are never going to save enough at $25 annually to cover $5,000.

Poor explanation, I know, hope it makes sense.

 

[Rhymingmechanic]

I just looked at my policy. The medical coverage pays up to the stated amount for each person in my car. It also covers me or any family member hit by a car or trailer as a pedestrian.

Unfortunately, it does not cover injuries from "Discharge of a nuclear weapon (even if accidental)."

 

[DBMaster]

Originally Posted By: Rhymingmechanic
Unfortunately, it does not cover injuries from "Discharge of a nuclear weapon (even if accidental)."


Well, you can forget about that luxurious post-apocalyptic lifestyle then!