What is the Difference Between MedPay & Personal Injury Protection?

Many clients ask us what is the difference between medpay & personal injury protection benefits. Well, there are several similarities, but there are some very important differences that our clients should take into consideration.

First, what are the similarities?

Both MedPay and personal injury protection benefits, or PIP, are no fault benefits. Basically means regardless of whether you are at fault in an accident or the other driver’s at fault, this coverage and these benefits are available to you. Another important thing is that both MedPay and PIP cover reimbursements for medical expenses related to an accident. One of the primary differences is that PIP will also reimburse you for your loss earnings or any lost wages that are documented, whereas MedPay is strictly limited to reimbursements for medical expenses.

Another very, very important difference is that there is a subrogation interest when MedPay is involved. Let’s say for example, you’re in an accident, you file on your medpay and you receive some reimbursements. Let’s say later on you do recover some more compensation based on the accident being another person’s fault. What you will have to pay your insurance company back, the benefits that they provided under your medpay. Now, if you had PIP and a similar situation took place, there would be no subrogation interest and you would not be responsible for paying your insurance company back. Another difference is that many times we hear that MedPay is sometimes more.. it’s cheaper than PIP, but in the long run in looking at the coverages and flexibility of PIP the whatever difference in price is definitely worth the investment.

Lastly, when reviewing MedPay benefits verses PIP, is that there is an opportunity to almost have a, what would seem as though, a double recovery when it comes to PIP. Let’s say for example you’re in an accident in someone else’s vehicle and you on your own insurance policy have PIP coverage available and the person’s vehicle that you were in also has PIP well you would have both of those PIP policies available to you for reimbursements like I said for any lost wages or earnings as well as medical reimbursements. That is something that is not available for MedPay.

So, when considering MedPay versus PIP, we definitely recommend you really weight these options and seriously consider PIP benefits.