As a Tennessee car accident attorney, I am often asked why it is necessary to have medical payments coverage as part of an automobile insurance policy, especially if the car owner also has health insurance.
Frankly, it is possible that your medical payments ("med pay") coverage will do you little good if you are injured in a car wreck and also have health insurance. However, med pay coverage can be used to pay deductibles, co-pays, and items not covered by health insurance. If you have a health insurance plan that exposes you to minimal deductibles and co-pays and you can comfortably meet those expenses on your monthly income or with your savings, med pay coverage may not be a good investment.
However, my experience has been that many people do not have a financial reserve for these bills and, to the extent that they have a financial reserve it disappears quickly if the injury results in loss of income. Thus, med pay can provide a financial cushion and can avoid the all-too-common situation where medical bills from car accidents are sent to collection agencies.