After you have been involved in a car accident, figuring out which insurance coverage applies and when can be overwhelming. One of the most helpful but often misunderstood auto insurance coverages is Medical Payments Coverage, commonly called MedPay. Understanding how MedPay works—and how it interacts with health insurance—can make a significant difference in your financial recovery after a crash. Below, our friends at Ganderton Law, LLC explain what MedPay is and how it can help you after a car accident.

What Is MedPay?

MedPay is an optional add-on to your auto insurance policy that pays for medical bills after a car accident, regardless of who caused the crash. It typically covers:

You, your passengers, and household members
You as a pedestrian or cyclist hit by a vehicle

This makes MedPay one of the most flexible and consumer-friendly coverages available for accident-related medical expenses.

Why MedPay Is Valuable After a Car Accident

Because no liability investigation is required, MedPay provides fast payment for medical treatment, helping accident victims avoid delays, collections, and out-of-pocket costs. Coverage can be used for a wide range of expenses, including:

Ambulance transportation
Emergency room care
Hospital visits and surgery
X-rays, diagnostic imaging, and lab work
Chiropractic and physical therapy
Dental injuries
Prosthetics
Funeral costs

MedPay limits generally range from $1,000 to $25,000, though some insurers offer much higher limits—up to $100,000. Some states require insurers to offer MedPay unless the driver opts out. For example, in Colorado, insurers must provide at least $5,000 in MedPay coverage unless you reject it in writing.

How MedPay Works During a Personal Injury Claim

MedPay pays medical bills immediately, reducing financial stress while your bodily injury claim is pending.
Using MedPay does not reduce your settlement or your ability to file a claim against the at-fault driver.
Fast payment through MedPay helps keep accounts out of collections and prevents large medical bills from damaging your credit.

MedPay vs. Health Insurance After a Car Accident

MedPay is considered the primary payer for accident-related injuries. This means medical providers typically bill MedPay first. MedPay pays until the policy limit is reached, and then health insurance covers the remainder.

Advantages of MedPay Over Health Insurance

No deductibles
No copays
No network restrictions
Pays the full medical charge (not a discounted rate)
Usually no reimbursement is required from your settlement

Once your MedPay limits are exhausted, your health insurance kicks in normally, applying your deductible, copay, or coinsurance as usual.

MedPay and Subrogation: A Key Financial Difference

Health insurance companies often assert subrogation rights, meaning they may demand repayment from your settlement for accident-related bills they paid. MedPay typically does not require reimbursement—depending on state law and your policy. This can significantly increase your net settlement.

Should You Provide MedPay Information or Health Insurance First?

Best practice:

Give MedPay first, then health insurance.

Why This Works Best

MedPay processes claims quickly
Reduces your out-of-pocket expenses
Minimizes medical liens
Prevents large ER or imaging bills from hitting your health insurance deductible
Helps keep medical bills out of collections

Many personal injury lawyers strategically manage MedPay to maximize your compensation and reduce medical liens at the end of the case. Understanding how this coverage works ensures you get the full financial benefit of a resource you’re already paying for. MedPay can also help you maintain consistent medical treatment, which is essential for both your physical recovery and the strength of your injury claim. Consistent care creates accurate documentation of your injuries, making it easier to prove the extent of your damages when negotiating with the insurance company.

If your MedPay coverage is high enough, it can cover several months of treatment, reducing financial pressure while you wait for a settlement. Even smaller MedPay limits can make a meaningful difference by covering emergency room care, initial imaging, and early follow-up visits. For many accident victims, MedPay is the difference between receiving timely treatment and delaying care due to cost concerns. Understanding the value of MedPay—and using it correctly—helps protect your health, your credit, and the outcome of your personal injury claim.

What Is MedPay? How Medical Payments Coverage Works After A Car Accident