Understanding the Differences Between PIP and Med-Pay


You may have heard of the terms “Med-Pay” and “PIP” while exploring auto insurance options. The two are similar in that both Med-Pay and PIP are types of no-fault insurance that provide coverage for medical expenses you incur as a result of auto accident injuries.

However, there are some key differences between Med-Pay and PIP, most notably that PIP provides coverage for lost earnings, and a death benefit.

Read further for a more detailed explanation of these two no-fault insurances.

Medical Payments Coverage (Med-Pay)

If you are involved in an auto accident, Med-Pay will cover the cost of:

  • Medical care
  • Surgery
  • Dental care
  • Chiropractic care
  • Ambulatory services
  • Hospitalization
  • X-rays
  • Nursing services
  • Prosthetic devices
  • Funeral services

Med-Pay will cover you, anyone authorized to drive your car, passengers, and sometimes even pedestrians injured by you, regardless of fault. So, if you are involved in an auto accident, Med-Pay will pay for the medical expenses of anyone insured under your policy. However, it will not pay for pain and suffering.

Personal Injury Protection (PIP)

PIP offers the same coverage as Med-Pay, while going a lot further. It also covers services such as:

  • Psychiatric care
  • Physical therapy
  • Occupational therapy
  • Rehabilitation services
  • Many other health-related services

However, the most significant difference between PIP and Med-Pay is that PIP covers lost wages. If you are unable to return to work after the accident, PIP may cover your lost earnings and other expenses incurred while you were unable to work.

Lastly, PIP can offer some death benefits to your survivors, should you pass on as a result of the accident. If you are killed in a fatal accident, PIP coverage may provide benefits to anyone related to you by blood, marriage, or adoption.

Which is Right for You?

The main difference between PIP and Med-Pay is that Med-Pay covers your medical expenses – and those of anyone under your policy – resulting from an auto accident. PIP, on the other hand, covers your medical expense and lost earnings, and may provide certain death benefits on top, if the need arises. It should be noted, however, that neither is a substitute for regular health insurance.

Contact an Experienced Personal Injury Attorney Today

Personal injury lawyers handle personal injury cases that involve both Med-Pay and liability payments to people injured in accidents. If you have questions about Med-Pay and PIP and how they can be used to pay for the medical treatment that you or someone you love needs, call a qualified injury attorney.