MedPay vs. PIP: Which is the Better Choice for Your Car Accident?
If you’re deciding between MedPay and PIP coverage, PIP is almost always the superior option for car accident claims.
Both MedPay and PIP are types of no-fault coverage designed to help pay for medical bills after an accident, but there’s a crucial difference that can affect how much money you ultimately recover. The key factor is something called subrogation. Subrogation is essentially a contractual lien that allows an insurance company to be reimbursed for money it has already paid on your behalf. Most people encounter subrogation through health insurance. For example, if you have health insurance and your bills are partially paid after an accident, and you later recover money from the person who caused the accident, your health insurance company is entitled to be reimbursed for what they paid. Subrogation prevents “double dipping,” ensuring that you cannot collect twice for the same medical expenses.
MedPay works in a similar way. It is a form of no-fault coverage that pays for medical bills regardless of who caused the accident. Depending on your policy, MedPay coverage can extend up to $10,000. While that sounds beneficial, there is an important limitation. If you later file a lawsuit against the at-fault driver for additional damages, any MedPay funds you received may be subrogated back to your insurance company. Essentially, you can’t stack MedPay on top of a third-party settlement, because your insurance company is entitled to reimbursement.
PIP, or Personal Injury Protection, provides a significant advantage because it is not subject to subrogation. With PIP coverage, you can use the policy to pay for medical bills and still pursue additional compensation from the at-fault driver without reimbursing your own insurance company. For instance, if you have a $10,000 PIP plan, those funds can cover your immediate medical costs. Later, when you pursue a claim against the driver responsible for the accident, you can recover money for pain and suffering, additional medical bills, or lost wages while keeping your PIP payments intact. This makes it possible to legally “stack” your benefits on top of a third-party settlement — something MedPay does not allow.
Another benefit of PIP is that, like MedPay, it is no-fault coverage. This means it pays your medical bills regardless of who caused the accident. However, because PIP is not subject to subrogation, it often provides much more value and protection than MedPay. A skilled attorney can help maximize your PIP benefits while also pursuing full compensation from the at-fault driver, ensuring you get the money you need for recovery.
At The Kaufman Law Firm, we help clients navigate MedPay, PIP, and personal injury claims to maximize recovery and protect their rights. If you’ve been injured in a car accident, it’s important to know your coverage, understand your options, and have a skilled attorney on your side every step of the way.
To see how this coverage plays into your case value, check out [Should I ask for my UM/UIM/PIP signed rejections after a car accident?].
You can also read [Do Insurance Companies in Texas Have to Offer Uninsured/Underinsured Motorist Coverage?] to understand how different protections work together.
