Updated April 2026
What Is Medical Payments Coverage Insurance?
Medical Payments Coverage pays for medical and funeral expenses resulting from an auto accident, covering you, your passengers, and family members driving your vehicle — regardless of fault. For senior drivers already on Medicare, MedPay acts as secondary coverage, paying Medicare Part A and Part B deductibles ($1,632 and $240 respectively in 2024), copays for hospital stays, ambulance bills, and emergency room visits that Medicare doesn't fully cover. Unlike health insurance, MedPay requires no coordination of benefits paperwork and pays out quickly after an accident.
- A 68-year-old driver with a $5,000 MedPay policy rear-ends another vehicle at a stoplight and breaks her wrist. Medicare covers most of her $8,200 emergency room and orthopedic treatment, but she faces a $240 Part B deductible and 20% copays totaling $1,640. Her MedPay pays the full $1,880 in out-of-pocket costs within two weeks, with no fault determination needed and no effect on her liability coverage.
- A 72-year-old driver with a $2,500 MedPay policy is hit by a red-light runner and transported by ambulance with chest pain. The $1,850 ambulance bill and $420 in ER copays (after Medicare) total $2,270. His MedPay covers the full amount immediately while he waits for the at-fault driver's liability insurance to process his claim — avoiding months of out-of-pocket expense on a fixed income.
- A 70-year-old driver with $10,000 MedPay is involved in a single-vehicle accident on icy roads. Her 69-year-old husband, a passenger, suffers a head injury requiring a three-day hospital stay. After Medicare pays its portion, the couple faces $3,100 in deductibles and copays. MedPay covers the full amount for both of them — the driver and passenger — under the single policy limit.
How Much Does Medical Payments Coverage Insurance Cost?
Senior drivers with clean records typically pay $3–$12 per month ($36–$144 annually) for MedPay, depending on coverage limits. A $1,000 limit might cost $3–$5 monthly, while a $5,000 limit runs $8–$12 monthly for drivers aged 65–75.
- Coverage limit selected — $1,000, $2,500, $5,000, or $10,000 per person affects premium proportionally
- State of residence — states with higher medical costs or mandated PIP instead of optional MedPay see different pricing
- Driving record — senior drivers with clean records for 3+ years qualify for lower MedPay rates
- Vehicle type — newer vehicles with advanced safety features may qualify for medical coverage discounts
- Multi-policy discounts — bundling home and auto can reduce MedPay premiums by 10–20%
- Existing health insurance — some insurers offer lower MedPay rates if you demonstrate Medicare coverage, since it reduces their exposure
See How Much You Could Save
Get personalized medical payments coverage insurance quotes in minutes.
Who Needs Medical Payments Coverage Insurance?
Senior drivers on Medicare should strongly consider MedPay in the $2,500–$5,000 range — it costs roughly the equivalent of one restaurant meal per month but can save thousands in Medicare copays and deductibles after an accident. This is especially valuable for drivers who still commute regularly, take frequent road trips, or live in areas where deer strikes or weather-related accidents are common, since MedPay covers you regardless of fault. If you or your spouse have any health conditions that could complicate injuries from even minor accidents (osteoporosis, blood thinners, previous surgeries), the low cost of MedPay makes it worthwhile.
Compare your MedPay annual premium to your Medicare out-of-pocket maximum and driving patterns. If you drive 5,000+ miles per year or lack Medigap coverage, a $5,000 MedPay policy at $100/year is cost-justified — one accident pays for a decade of premiums. If you drive under 2,000 miles annually, have excellent supplemental health coverage, and face premium increases, dropping to a $1,000 limit or removing MedPay entirely can save $75–$150 per year without significant risk.