In Colorado, auto insurance carriers are required to offer drivers Medical Payment insurance, often referred to as “Med Pay”. However, most insurance carriers do not take the time to fully explain these benefits, and policy holders may be persuaded into waiving this coverage. The bottom line, however, is that Med Pay benefits are a huge asset if you are ever involved in an accident.

The first thing to know about Med Pay is that these benefits are paid to you in instances where you have been hurt in a collision, regardless of fault. This means that even if the other driver’s insurance carrier is disputing liability, you can still recover Med Pay benefits from your own carrier to help cover medical expenses.

Second, these benefits are specifically paid to help cover medical expenses resulting from injuries, and can even be issued directly from your insurance carrier to your healthcare provider(s). If you have not waived Med Pay coverage and you are ever injured in an accident, speak with your providers to see if any of them can help you obtain these benefits.

Third, just as with all insurance coverages, there are various tiers of benefits for Med Pay. Colorado law requires that auto insurers offer a minimum of $5,000.00 per incident. Most carriers offer higher benefits in $5,000.00 increments, and the additional cost is not significantly higher. If you are not sure if your policy includes this coverage, it is highly recommended that you speak with your insurance agent soon. If your policy does not have Med Pay coverage, it probably should.

The reason Med Pay coverage is so beneficial, besides the fact that it is paid regardless of fault, is because Colorado law does not allow other insurance carriers to offset other recoveries by the amount of Med Pay you receive. For example, let’s assume you were in an accident caused by the fault of another driver and you incur $10,000.00 in medical bills. When filing your claim with the other driver’s insurance company, you will submit bills showing the $10,000.00 in medical expenses. As long as the insurance carrier does not dispute the charges in any way, the at-fault driver’s carrier will reimburse you for those expenses. But, because of the law in Colorado, you can also submit those same bills to your insurance carrier and receive any Med Pay benefits you may have. Using the same example, let’s assume your policy has $5,000.00 in Med Pay. This means you would recover a total of $15,000.00 for the $10,000.00 in medical bills.

This is a very complicated area of insurance coverage, and we always encourage those injured in an auto collision to seek the advice of legal counsel. If you have been injured, please call Law One today to schedule a consultation to see if representation is right for you.