What Is Medical Coverage on an Auto Insurance Policy?

In general, medical coverage pays for your medical treatment after you are injured in an auto accident. The medical coverage options under an auto policy differ by state. Many states offer additional coverage options to help you offset the costs of an accident-related injury.

Types of medical coverages on an auto insurance policy

Depending on your state, you may have access to the following coverage options:

• No-fault insurance or PIP
  No-fault insurance, also known as Personal Injury Protection (PIP), is required in some states and provides coverage for immediate and necessary medical treatment for you and others insured on your policy, or passengers in your vehicle, no matter who caused the accident.
• Medical payments coverage
  In contrast with no-fault insurance, medical payments coverage is optional, with lower limits, and it also pays for an insured's immediate and necessary medical treatment following a car accident that results in an injury.
• Work loss benefits
  This option provides income continuation if an insured misses work while recovering from an auto accident-related injury.
• Essential services
  This option helps reimburse the extra cost if an insured needs to hire someone to take care of their home or family after an injury in a car accident.
• Accidental death benefits/Survivors loss coverage
  This option provides a payout to an insured's family if the insured is killed in a car accident.
• Funeral expense benefits
  This option contributes to the cost of a funeral if an insured is killed in a car accident.

Some states, such as New Jersey, require you to have a minimum level of personal injury protection (PIP) or medical expense coverage.

Who does medical payments/PIP cover?

The medical benefits in your auto insurance policy cover you and your resident relatives (family members who live with you). It may also cover uninsured passengers in your vehicle. This coverage applies when you are a driver, passenger, or pedestrian injured in any accident involving an automobile.

In some states, like New Jersey, the extended medical expense benefit provides coverage for incidents involving motor vehicles not defined as “automobiles” by state law, such as motorcycles, taxicabs, and commercial vehicles.

What types of medical services are covered?

Your auto insurance policy may cover these medical expenses up to your chosen limit and subject to a deductible or copayment:

• Medical, surgical, rehabilitative, and diagnostic treatment and services
• Hospital expenses
• Ambulance or transportation services
• Medication
• Certain non-medical expenses prescribed by a healthcare provider

Medical services covered may differ by state. Review your policy for a complete list of covered and excluded situations.