Medical Payments Coverage, often referred to as MedPay, covers the medical expenses for both you and your passengers that result from an accident.  In addition, you and your family are covered in the case you are driving someone else’s car (with their permission), or if you are injured as a pedestrian.  MedPay coverage kicks in no matter who is at fault, although your car insurance carrier has the right to recoup the expense from another party should someone else be liable.

Personal Injury Protection, or PIP, is similar to MedPay, but also covers expenses related to an injury that are not necessarily medical in nature:  Lost wages, childcare or funeral costs, for example.  PIP coverage is only required in sixteen states at this time.

InsureMeOnline.com tip: If you already have a good health insurance plan, you may decide to go with the bare minimum of PIP or MedPay coverage — especially if you already have disability insurance.