Medical payment insurance, commonly referred to as "med‑pay" is an optional provision of a motor vehicle liability insurance policy.
North Carolina law does not require this type of insurance. However, most people have this insurance even though many people do not realize they have it until they look at their policy.
Med‑pay insurance is simply a provision added to a liability insurance policy which provides that the insurance company will pay all the medical bills for
anyone injured in an insured motor vehicle. This payment will cover all medical bills up to the limit of the policy. For instance, if someone has $3,500.00 in medical bills but has only a $2,000.00 med‑pay insurance policy, the insurance company will only pay $2,000.00.
What happens though if you are injured in someone else's car and that car is not covered by med‑pay insurance?
The answer is that if you have med‑pay insurance on your own car, your own insurance company will step in and pay you under the medical payment provision of your own insurance policy.
Your own liability insurance policy which contains a medical payment provision will pay your medical bills up to the limit of your policy even if you are injured in any car or motor vehicle which is not covered by medical payment insurance. If the other car you are riding in when you are injured did have medical payment insurance the other car's insurance policy would pay first. Your own policy would not pay unless there is no insurance on the other car or the med‑pay coverage on the other car is less than your own coverage. For instance, if you are injured while riding in another car which had medical payment coverage of only $1,000.00 and your medical payment coverage on your own car had a $2,000.00 limit on the med‑pay coverage, you can recover $1,000.00 from the med‑pay coverage for the car you're riding in and your own insurance policy will pay the additional $1,000.00 for a total coverage of $2,000.00. Of course, you have to have bills of $2,000.00 or more in order to collect the $2,000.00
Your med‑pay insurance will not pay more than the medical bills or the limit of its coverage whichever is less.