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Insurance · General

What is 'medical payments coverage' (MedPay) and how does it differ from bodily injury liability?

Correct answer

MedPay is a first-party no-fault coverage that pays medical expenses for the insured and passengers regardless of fault — it does not require proving the insured was liable; BI liability is a third-party coverage that pays damages to others when the insured is at fault

  1. A They are the same coverage
  2. B MedPay is a first-party no-fault coverage that pays medical expenses for the insured and passengers regardless of fault — it does not require proving the insured was liable; BI liability is a third-party coverage that pays damages to others when the insured is at fault
  3. C MedPay only covers the driver, not passengers
  4. D BI pays for medical bills; MedPay pays for pain and suffering

Why this is the answer

MEDPAY vs BODILY INJURY LIABILITY: MEDICAL PAYMENTS (MedPay): First-party coverage — pays for the INSURED and passengers in the insured vehicle; No-fault — pays regardless of who caused the accident; Covers medical expenses only (not pain and suffering, lost wages); Lower limits (typically $1,000-$10,000); BODILY INJURY (BI) LIABILITY: Third-party coverage — pays for OTHERS injured when the INSURED is at fault; Requires fault determination; Pays all bodily injury damages including medical, lost wages, and pain and suffering; Higher limits (state minimums often $25,000-$100,000+); ADJUSTER RELEVANCE: MedPay claims are handled as first-party — insured cooperates, no fault determination needed; BI claims require liability investigation; some states have PIP (Personal Injury Protection) instead of or in addition to MedPay — PIP is broader (includes lost wages) and may have coordination of benefits with health insurance requirements.
Source: Insurance Adjuster — Coverage Types, MedPay vs BI Liability

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