It is a “First-Party” benefit, in that it pays for your medical (and other related) expenses due to an occurrence. It will pay up to the limit of coverage for each person in the vehicle, and there is no deductible for using it. Another little-known fact about this coverage is that it often provides payment if you are injured by a car while walking, or while riding a bicycle!
Medical payments (MP) is typically offered in increments from small to large, for example $ 500 to $ 10,000. The more coverage, the more premium, but not always proportionately to the increased coverage amount. You may be able to purchase the maximum amount for only slightly more than the minimum. Even people fortunate enough to have health insurance, which will in most states pay for these types of injuries, still have to pay for deductibles, co-pays, prescription drugs, and other miscellaneous charges not entirely covered by the health policy.
If this is the case for you, a small amount of MP will do just fine— pick the lowest amount that will cover your expected out of pocket medical expenses should you incur them. Funeral expenses and ambulance rides also are typically covered by MP, so drivers who like to live dangerously may want to include this coverage, at an amount large enough to cover the ride to the hospital, a decent funeral, or both, so as to not unnecessarily burden loved ones during their time of loss.
“Extended” Medical Benefits/ Payments (EMP)
“Extended” Medical Benefits/ Payments (EMP) are sometimes offered in addition to the standard coverage. These extended benefits typically offer a death benefit, and sometimes a small amount of income replacement. They may also include a reimbursement for “essential services replacement,” which means simply that if you require assistance with common household tasks as a result of your accident-related injuries, you will be compensated up to a designated amount.
Declining these optional coverages has no effect on your premium. $ 1000 worth of MP can usually be had for about $ 2 a month (or less!). EMP typically will cost you around another $ 2 a month.