If you operate or own a motor vehicle to operate the vehicle legally and to protect yourself and your property you need auto insurance. Your auto policy has several types of coverages but what do they mean?

One coverage is “Medpay” or “Medical Pay”

Medpay works like this: When you are in an automobile accident and Medpay is one of your coverages, then your carrier is responsible for your reasonable and necessary medical bills up to the Medpay limit. Most limits are $5000 but over the last 20 years I have seen them range from $500 to $100,000.

If the accident is your fault and therefore, you make no claim against anyone, your carrier is responsible to pay your reasonable medical bills up to the Medpay limit. For example: If your medpay limit is $2000 and you have a $3000 chiropractic bill your carrier shall pay $2000 of your bills and you are responsible for the remainder. Also, when you are making no claim against any third party for your injuries you do not have to reimburse your carrier for the medpay benefits you have received.

But if the accident is caused by a negligent driver against whom you make a claim and you obtain a settlement from the other driver’s insurance, usually you must reimburse your carrier for the Medpay benefits it has paid out.

For example: Let’s say another driver’s negligent driving injures you and your chiropractic bill is $3000 and your medpay limits are $2000. Your carrier shall pay medpay benefits of $2000 to your chiropractor. But if your case against the negligent driver then settles for $15,000 then from that settlement, normally, you must reimburse your carrier for the medpay benefits that they paid. You have to reimburse the $2000 they paid. Medpay works this way because you have a provision in your insurance policy that requires this.

However, if your auto carrier is CSAA then your Medpay reimbursement is $0. CSAA and sometimes Twentieth Century have policies that do not require reimbursement of medpay when you recover from a third party. Check with your insurance company about this matter. The policies offered by insurance companies are always changing.