Will Car Insurance Cover Medical Bills After an Accident?

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Car insurance will pay for medical expenses if you purchased medical payments coverage, personal injury protection or uninsured/underinsured motorist coverage. Certain coverage types will step in depending on the car accident — uninsured motorist insurance pays when the other driver was liable but doesn't have coverage, for instance.

Keep reading to learn how medical coverage through your auto insurance company works.

When Does Car Insurance Pay for Medical Bills?

Traditionally, the liable driver should pay for the other driver’s medical expenses, whether it’s through auto insurance or out of pocket. If you were the at-fault driver, you can still enjoy some first-party medical benefits if you purchased the following coverage:

  • Medical payments (Medpay) and personal injury protection (PIP) pay for your medical expenses regardless of who caused the accident or for single-car accidents.
  • Uninsured/underinsured motorist (UM/UIM) insurance covers your medical costs if the other driver was at fault but does not have insurance or has insufficient coverage.

What Type of Car Insurance Do You Need to Cover Medical Bills and Expenses?

Depending on where you live, purchasing Medpay or PIP will provide medical coverage through your medical insurer.

Medpay is designed to provide medical expense coverage for you and your passengers in the event there is a car accident regardless of who is at fault. Maine and New Hampshire require residents to have Medpay. Below are situations when your Medpay coverage would be used:

  • You or a family member are injured in your car while driving
  • You’re injured while in a different vehicle than your own
  • Funeral expenses resulting from an accident
  • You’re struck by a vehicle as a pedestrian
  • You’re struck by a vehicle while riding a bike

Personal injury protection, also called no-fault insurance, offers the same protections as Medpay plus coverage for lost wages if you’re unable to work while recovering. PIP is available only in no-fault states.

Medpay is optional in most states, while PIP is required in only a few states. You will typically have one Medpay or the other.

Liability coverage kicks in depending on who was responsible for the car accident. If you were the at-fault driver, your liability insurance would pay for the other driver’s medical bills. If the other driver was at fault, their liability insurance would cover your costs. If they don’t have insurance, your UM/UIM coverage would step in.

What if You’re Injured by a Driver Who Doesn’t Have Insurance?

Assuming the other driver was at fault, uninsured/underinsured motorist (UM/UIM) insurance would pay for your post-car accident medical expenses, funeral costs and lost wages if the other driver has no insurance or their liability limits are too low. For example, say your medical costs after a car accident total $20,000. UM insurance would pay for the full amount, while UIM insurance pays the difference if the other driver only has $15,000 in liability coverage. UM/UIM is legally required in some states.

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How Does Insurance Handle Medical Bills When I’m the At-Fault Driver?

Multiple types of coverage can come into play when you are the at-fault driver. Any injuries the other driver sustains from the car accident will be covered by your auto liability insurance. If you sustained any injuries, then you will need to rely on either your Medpay or PIP coverage.

If you have no car insurance, you will be held personally liable. This means you are legally obligated to pay for the other party’s medical costs out of pocket.

What To Do if Car Insurance Won’t Pay for Medical Bills

You have a few options if auto insurance won’t pay for your medical expenses.

  1. Use your health insurance. Check to see if your deductible will need to be met before your insurance will cover your medical costs.
  2. Use your own coverage if the at-fault driver can’t cover your medical expenses. If you purchased Medpay, then your insurer will cover your medical expenses. Similarly, UM/UIM insurance will step in if the other driver’s liability coverage limit is insufficient for covering your medical bills.
  3. Go to court. You can file an appeal if you think your insurance company wrongfully denied your claim. You can also go to court and file suit against the offending driver if they don’t have proper coverage.
  4. Ask for a payment plan. Hospital bills can be a huge financial burden if you do not have medical coverage through your auto insurer. Fortunately, many medical facilities allow patients to divide their large bills into manageable payments over time.


Who pays for medical expenses after an accident?

The at-fault driver’s liability coverage should pay for your medical expenses — UM/UIM coverage will step in if the liable driver cannot cover your losses. If you purchased Medpay or PIP coverage, these coverages will pay for your medical costs regardless of who was responsible for the car accident.

What is included with medical payments coverage?

Medpay will cover doctor visits, hospital bills, ambulatory services, surgeries, health insurance deductibles and copays and funeral expenses.

Does health insurance cover car accident injuries?

Your health insurance will cover medical-related expenses incurred due to a car accident. However, auto insurance will usually pay first and your health insurance coverage will cover the remaining cost.

Do you need Medpay on car insurance?

Medpay is optional coverage in most states but is required for Maine and New Hampshire drivers.

Key Takeaways

  • The liability coverage of the at-fault driver should help cover the medical expenses of other injured parties up to their policy’s limits.
  • Depending on who was the at-fault driver, Medpay, personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage can help cover your medical costs.
  • Medpay is required only in Maine and New Hampshire.
  • You can file an appeal if your insurance company denies your claim.

For the best auto insurance coverage for any situation, SmartFinancial has your back. Enter your zip code below or call 855.214.2291 to receive your free auto insurance quotes.


  1. Nationwide. “States With No-Fault Insurance.” Accessed Nov. 25, 2022.
  2. Insurance Information Institute. “Automobile Financial Responsibility Laws By State.” Accessed Nov. 25, 2022.

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