Why do I need medical-payments coverage under my
automobile insurance policy?
The medical-payments coverage in a typical automobile
insurance policy covers your medical and hospital bills (up to a
certain dollar amount) if you or a passenger is injured in a car
accident. You may need to purchase the coverage, even if you have a
separate health-insurance plan. According to "Get a Financial
Life" (Simon & Schuster), "If you live in a no-fault
state, you probably will be required to buy a minimum amount of
medical payments coverage, typically called 'personal injury
insurance' or 'no-fault insurance.' It covers your medical bills (and
in some cases your loss of income if you are disabled) regardless of
who is to blame for an accident. "If you live in a 'fault'
state, you are usually not required to purchase medical payments
coverage, but you may want to anyway. Accidents in which no one can
be proven negligent won't be covered by liability insurance, and
liability insurance will not cover your own injuries in accidents
that you have caused." If you already have good health
insurance, you won't necessarily need medical payments insurance to
cover your own medical bills. But you may want to consider purchasing
it if you often have passengers in your car.