It's that time of year again: Thanksgiving, Christmas, Hanukkah,
and Open Enrollment for the Affordable Care Act! Well, I'm not
going to open that can of worms, but I am going to discuss how you may want to
adjust your auto insurance due to changes in the hospitalization market.
Med Pay:
There is an optional coverage on your policy called Medical
Payments. Medical payments coverage will reimburse you, your
family member, and/or any one in your covered car for the medical bills
sustained while either riding in, exiting, or entering your vehicle. Essentially,
if someone gets hurt in your car the insurance company will reimburse you for
bills. This is regardless of who is at fault; whether you run into
Santa’s sleigh or he sideswipes you—it doesn't matter.
Don't confuse this with your
Liability insurance. Liability will cover medical expenses to the other
party in the event of your negligence.
The question is, "do I need Med Pay?"
Years ago I would tell people that it was nice to have, but if you had good health
insurance you might not really need it.
Today is a different market and a different story. This is the ACA part: in the last couple of
years, low deductible hospitalization plans have basically disappeared. Therefore, an inexpensive addition of Medical
Payments on your auto policy is shifting towards a “need to have.”
Even if your injuries are the other person's fault, it might be
months before your claim is settled and many individual health insurance plans
have $5,000 through $10,000 deductibles. The upside? The cost for Med Pay coverage is minimal as
long as you have a good record. For
example, a two car policy might only be $35 a year for $5,000 in coverage.
(This coverage can be added mid-term, but of course it cannot be added and
applied to a previous accident.)
As always, I'm talking about North Carolina and if you would
like more information give us a call!
