Your auto insurance policy may include medical payments coverage (“med-pay”). This coverage can pay your medical bills up to the coverage limit – normally between $1,000 and $10,000.

Medical payments coverage should only be used in select situations. If you use med-pay for your medical bills and then settle your injury claim, you must pay the med-pay back to your insurance. So, your settlement proceeds will be reduced.

If you have health insurance, that insurance should be primary for paying your medical bills. The health insurance carriers have agreed reduction rates with medical providers, so it will be in your interest to have the health insurance pay the bills. Any co-pays you have will ultimately be less than the amount you would owe back to the med-pay carrier if they paid the entire bill.

Contact an attorney before you use any med-pay coverage to ensure you are not jeopardizing your recovery rights.