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MedPay Coverage is Critical for Your Protection if You Are Injured in an Auto Accident

I've used this website for the past year for many things, but especially to help readers protect themselves against financial disaster caused by auto accident injuries. In past postings here, I have stressed the importance of regular review of one's own auto insurance policy with a mind to making sure you will not be financially strapped if the other party has no insurance or not enough to cover a judgment you may obtain.

I've also discussed the benefits of having MedPay coverage in substantial amount on YOUR auto policy to reimburse you for your medical bills even if your bills have been paid through your health insurance carrier. This is why: if your medical expenses are paid by your health care provider, and you obtain a judgment against the other party (or settle the case with them), your health care insurer will demand to be repaid the amounts it paid in your behalf. This is called subrogation, and it reduces the amount of any settlement or judgement you put into your pocket.

However, MedPay coverage is something you pay for as a part of YOUR contract of insurance with your auto carrier. It is YOUR money to keep, regardless if some other carrier has already paid the medical bills.

Some MedPay provisions in auto insurance contracts permit stacking coverages. "Stacking" means if your policy has 2 or 3 cars insured under it, you can combine -- or "stack" -- the MedPay amounts if the total medical bills exceed the available coverage offered on a single car. For instance, if your policy covers 2 vehicles, and your MedPay limit is $10,000, but your medical bills total $15,000, your insurer will pay the full $15,000 because your "stacked" MedPay coverage total is $20,000.

Recognizing the increased amounts that they must pay in such situations, some insurers may put into their MedPay policy language "no-stacking" provisions so that all they will be liable to pay is the amount on one car. Such no-stacking provisions might appear in the body of the contract, or on the Declarations page. This practice was recently upheld in a Chesapeake circuit court case involving underinsured motorist coverage which left the injured plaintff without enough coverage to satisfy the amount of the judgment he obtained against the other driver.

So, the lesson here is READ and UNDERSTAND the terms of your auto policy to make sure you are getting the coverage you desire!!

Mr. Stelly regularly appears in the courts of the City of Richmond, Henrico County, Chesterfield County, Goochland County, and Hanover County.

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