Medical payments coverage reimburses reasonable medical expenses for injuries occurring in a covered accident or on covered premises, without regard to liability. Limits are typically small, commonly ranging from one thousand to ten thousand dollars.
Payment does not constitute an admission of liability.
Alternative Names:
Medical Payments Coverage, MedPay
Why it Matters?
Med pay serves a claims-handling function beyond its face value, since prompt payment of initial medical expenses often prevents a claimant from retaining counsel and can resolve minor claims before they develop. The tradeoff is that payments may be argued as evidence of responsibility, though the rules of evidence generally exclude them, and subrogation or setoff rights against any later liability recovery vary by policy and state.
Frequently Confused with
Related terms
Frequently asked questions
Does paying med pay admit liability?
Can med pay be recovered from a liability settlement?
