In our opinion, Med-Pay is a waste of money.  We discourage our clients from purchasing it and recommend they buy PIP instead.  Med-Pay is similar to PIP in that it is a "no-fault" type of insurance that you can purchase on your own.  However, Med-Pay only covers medical bills which you incur and does not reimburse you for your lost wages like PIP does. 

The worst part of Med-Pay coverage is that if you ultimately recover money from a third party in an injury claim, you must pay the Med-Pay carrier back.  The Med-Pay carrier has a lien on your case!  If you have an injury claim, then your insurance company is basically only loaning you the money to pay your medical bills until your case settles.  Since you are charged premiums year after year, this "loan" comes with a very steep price.  Of course, if you’re in a one-car accident and there’s no claim to make against someone else, then you don’t have to pay the insurance company back.  In that particular instance Med-Pay is similar to PIP.

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