MedPay on Your Auto Policy: How It Works and Why You Want It

Short answer: medical payments coverage, usually called MedPay, is the part of your own auto policy that pays medical bills after a crash, no matter who caused it. In Colorado, auto policies include $5,000 of MedPay unless the policyholder rejected it. It pays before your health insurance, so it can save you from deductibles and coinsurance at the moment you need care most. Using it well, and making sure it's on your policy, are two of the simplest ways to protect yourself and your family.

What MedPay Is

MedPay is coverage you buy for yourself as part of your auto policy. After an accident it pays for reasonable, accident-related medical care for you and the passengers in your vehicle, up to the limit on your policy. That can include emergency care, imaging, chiropractic care, physical therapy and other treatment your providers recommend.

Three things make it different from other coverage:

• Fault doesn't matter. MedPay pays whether you caused the crash, the other driver did, or fault is still being argued.
• It pays first. In Colorado, MedPay pays before your health insurance, and it can be used for your health plan's deductible or coinsurance.
• It doesn't wait for a settlement. A claim against the at-fault driver's insurance can take months. MedPay is meant to pay your bills as care happens.

What Colorado Law Says

Under Colorado law (C.R.S. 10-4-635), an auto liability policy must include $5,000 of medical payments coverage unless the named insured rejected it, either in writing or in the same way they applied for the policy, such as online or by phone. If the insurance company can't show a valid rejection, the policy is treated as including the $5,000 benefit.

A few more points from the law:

• For the first 30 days after the insurer learns of the accident, the first $5,000 is held for emergency and trauma care providers, such as the ambulance and the emergency room.
• An insurer that pays MedPay generally cannot recover that money from the at-fault driver, except in cases of fraud.
• The requirement doesn't apply to motorcycles, low-power scooters, off-road vehicles and some other vehicles, so check those policies separately.

How to Use MedPay Well After a Crash

1. Report the accident to your own insurer and get a claim number, even if the other driver was at fault.
2. Tell every provider you have MedPay. Give them your insurance company, claim number and adjuster's contact so bills go to the right place from day one.
3. Get checked promptly. Pain often shows up a day or more after a crash, and a long gap before your first exam can make it harder to connect your injuries to the accident. See why pain can show up days later.
4. Know your limit and track it. Ambulance and emergency room bills can use up much of a $5,000 limit. Ask your adjuster how much remains so you and your providers can plan the rest of your care.
5. Follow your care plan. Insurers review whether care is reasonable and related to the accident. Consistent visits and clear notes from your providers help.
6. Keep copies of everything: bills, explanation-of-benefits letters, notes and letters from the insurance company.
7. Read before you sign. If an insurer asks you to sign a release or to pay MedPay back out of a settlement, ask which part of your policy they're relying on, and talk to an attorney before you agree.

Why It's Worth Having on Your Policy

• It protects your whole car. MedPay covers you and the passengers riding with you, including your kids and other family members, regardless of fault.
• It covers gaps in health insurance. High deductibles, coinsurance and out-of-network care can add up fast. MedPay can pay those costs first.
• It gets care started sooner. You don't have to wait for fault to be decided or a settlement to be reached.
• It costs relatively little. MedPay is usually an inexpensive part of an auto policy compared with the bills it can pay. Ask your agent for the exact price of each limit.

Some people turn MedPay down to save a little on their premium, often without realizing what they gave up. If you've been in a crash, that choice can mean paying deductibles and coinsurance out of pocket, or waiting on another driver's insurer before your care is paid.

How to Check Whether You Have MedPay

1. Look at your declarations page. It's usually the first page of your policy, or in your insurer's app. Look for a line called "Medical Payments" or "MedPay" and the limit next to it.
2. Call your agent or insurer and ask: Do I have medical payments coverage? What is the limit? Does it cover my passengers?
3. If you're told you rejected it, ask for a copy of the signed or recorded rejection. Colorado insurers must keep proof of a rejection.
4. Consider a higher limit. $5,000 is the standard amount, and many insurers offer more. Higher limits can go a long way if you or a passenger needs ongoing care.

How Allied Healthcare Helps

We see car accident patients every week. We bill auto insurance claims directly, and our team will help you understand your coverage before care starts. You'll see your provider one-on-one at every visit, and your care plan is built around you, however it's paid for. We also accept health insurance as an out-of-network provider and workers' comp claims. We're not attorneys or insurance agents, so questions about your policy or a settlement belong with your agent or your attorney.

For a broader look at how auto and health insurance fit together, read how MedPay and auto insurance pay for chiropractic and PT in Colorado, or learn about our car accident injury care.

We accept health insurance as an out-of-network provider, auto insurance claims and workers' comp claims.

Frequently Asked Questions

Does MedPay pay if the accident was my fault?

Yes. MedPay pays regardless of who was at fault, up to your policy limit and subject to your policy's terms.

Will using MedPay raise my rates?

That depends on your insurer and the circumstances of the claim. Ask your agent. Not using coverage you've already paid for can leave you with bills you didn't need to pay.

Does MedPay cover my passengers?

Under Colorado law, MedPay covers you and passengers you allowed in your vehicle. Some policies cover more, such as household members in other vehicles. Check your policy.

What if I don't have MedPay?

Your health insurance, or the at-fault driver's insurance, may still help pay for care. Our team can walk you through your options.

Can my insurer make me pay MedPay back?

Colorado law generally stops an insurer from recovering MedPay from the at-fault driver, and reimbursement requests depend on your policy and the facts. Talk to an attorney before agreeing to repay anything.

This article is general information, not legal or insurance advice. Coverage depends on your policy. Ask your insurance agent or an attorney about your situation.

Sources

1. C.R.S. § 10-4-635, Medical payments coverage. Colorado Revised Statutes.
2. Auto Insurance. Colorado Division of Insurance.