Friday, December 9, 2011

Two Questions that Define Need for Auto Insurance Med Pay

By Todd Sherwin

Many auto insurers are fighting for your business, which is good for clients to price shop. Unless you've a copy of your current policy or you understand all your coverages, you will not be getting a precise quote or an apples-to-apples comparison.

An agent who is attempting to beat your prior comparison quotes might be persuaded to omit Medical Payments (MP) to scale back your rate. Educate yourself on the coverage and your desire for it before deciding with or against it. MP will pay for medical costs if you or another passenger is wounded in an accident irrespective of fault. Some states have Injury Protection (PIP) as an alternative so these options will not apply.

1. Do you have health insurance?

* If you have health insurance which has great coverage, you may not need medical payments because your healthcare insurance can take care of your expenses related to an accident.

* Before making the decision to exclude this coverage, find out how much your health plan charges for ER or hospital deductibles. Be sure to ask many questions when getting quotes for health insurance.

* You could have a superb health plan, but if you're answerable for a $2000 deductible, you still need to pay that money in the red.

* If you do have a deductible then consider making your MP coverage perhaps the amount of your deductible.

2. Do you commonly have others riding with you in your auto?

* Consider including a high quantity of MP if you generally have carpoolers, neighborhood children, household members, friends and/or roomies in your car.

* It doesn't even need to be an accident for benefits to be available. MP pays for any injury that occurs in or because of your car: Hand slammed in door, or head cut on doorframe, for example.

Avoid omitting Medical Payments on your auto insurance. For the small price you are probably going to pay for this coverage, it provides significant benefit and may help you to avoid a suit if somebody is injured in your car.

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