As a New York driver, you should know the differences between personal injury protection (PIP) insurance and MedPay, and how either may come into play after a car accident. MedPay and PIP serve different functions, and even exhausting both policies may not be enough to cover all your damages from a crash.
The first major difference between these insurance policies is that PIP is mandatory in New York and MedPay is not. They also cover different damages. PIP pays medical damages, a percentage of lost wages, and property damage costs, up to at least state minimums. MedPay can only be used to cover medical or funeral expenses and typically caps out at $10,000. Despite their differences, PIP and MedPay share some similarities, such as covering all passengers of a car and paying damages regardless of fault.
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Does New York Have Different Insurance Requirements for PIP and MedPay?
A fundamental difference between PIP and MedPay is that the former is required for all drivers, while the latter is not. You must carry PIP that covers at least $50,000 per person to meet state minimums. While PIP is mandatory, New York is not a “no pay, no play” state, meaning failing to carry PIP doesn’t block you from suing if your injuries are otherwise severe enough.
Comparatively, MedPay is entirely optional. While there are no minimum coverage requirements, insurers may not offer policies of less than $5,000 per person.
While MedPay is optional, many drivers choose to purchase it in addition to PIP in case of an accident. MedPay benefits only cover specific benefits, so they may only be marginally helpful after an accident.
The difference in insurance requirements typically leads to a difference in cost as well. Generally, PIP is more expensive because it is a legally required coverage for all New York drivers.
Do Personal Injury Protection and MedPay Cover Different Damages?
The other major difference between PIP and MedPay is what damages these policies cover. Coverage from PIP is broader, while MedPay benefits are very limited in scope.
While PIP doesn’t provide any non-economic damages, it can cover a significant chunk of medical expenses, lost wages, and property damage costs from a collision. PIP isn’t always sufficient to cover all expenses, especially medical damages, which is when having MedPay becomes useful.
Like the name suggests, MedPay benefits primarily cover medical expenses, but may also be used toward dental and funeral costs. You can’t rely on MedPay benefits to cover lost wages, even if the economic damages from PIP are insufficient. MedPay won’t cover any other non-medical economic damages, such as property damage costs or childcare services.
Do PIP and MedPay Plans Have Different Policy Limits in New York?
In addition to covering different damages, PIP and MedPay policies also typically have different policy limits. While many drivers choose to purchase the minimum PIP policy in New York, others get more coverage for greater protection in case of an accident. Even if you purchase more than the minimum required amount in New York, PIP may not cover enough of your economic damages.
At the very least, your PIP should cover up to $50,000 for bodily injury. That is much more than MedPay provides, which generally ranges between $5,000 and $10,000, and policyholders only get this after exhausting their PIP.
When victims suffer serious injuries, their medical damages might quickly exceed what their PIP and MedPay can cover because of policy limits.
Will You Have to Reimburse MedPay or PIP Benefits in New York?
Even if you have MedPay coverage in addition to personal injury protection insurance, it may not be sufficient to cover all the damages you incur from a crash. This leads many victims to file car accident lawsuits to seek more compensation. Keep in mind that if your claim is successful, you may have to reimburse MedPay benefits.
This is a common caveat in most MedPay policies, so keep this in mind when filing a lawsuit in New York. Generally speaking, you may not have to reimburse and PIP benefits you’ve received, even if you file a lawsuit in New York and get additional damages from the negligent driver.
The settlement or jury award our New York personal injury lawyers get on your behalf may be greater than any MedPay benefits you received and must reimburse. Because of that, you may not have to be concerned about reimbursement very much.
Are There Any Similarities Between Personal Injury Protection Insurance and MedPay in New York?
With all the differences between personal injury protection insurance and MedPay, there are some similarities worth noting.
For example, both PIP and MedPay are examples of “no-fault” insurance. Policyholders are entitled to benefits after an accident, no matter who is liable. Even if the other driver is at fault, you start by filing a claim with your own PIP. If that is not enough, you may turn to your MedPay coverage, regardless of who is at fault for the accident.
Also, MedPay and PIP both cover all passengers in your car and members of your household injured in a crash.
Furthermore, despite the PIP’s higher policy limits, both personal injury protection insurance and MedPay may be insufficient to cover your damages after a lawsuit, even when used together. MedPay may only provide several extra thousand dollars of medical benefits, which may not be enough for all the upcoming surgeries, therapies, or other treatments you need.
Lawsuits can provide victims with the extra compensation they deserve. Although New York is a no-fault state, victims may sue after sustaining “serious” injuries, according to I.S.C. Law § 5104(a). You may also sue for incurring a “basic economic loss” of $50,000, the same amount as PIP minimum policy requirements.
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Call the Albany, NY car accident lawyers of The Carrion Law Firm at (718) 841-0083 for a free case assessment.