PIP vs. MedPay: Understanding Medical Coverage in Commercial Auto Policies
When it comes to commercial auto insurance, two commonly confused coverages are Personal Injury Protection (PIP) and Medical Payments (MedPay). While they sound similar, these coverages serve different purposes—and knowing the difference can impact how your business handles vehicle-related injuries.
What Is Personal Injury Protection (PIP)?
PIP, also called “no-fault insurance,” covers medical expenses for you and your passengers regardless of who caused the accident. It’s required in some states and often includes additional benefits.
What It Covers:
- Medical bills
- Lost wages
- Rehabilitation costs
- Funeral expenses
- Essential services (like childcare or housekeeping)
Where It’s Required:
- States with no-fault laws such as Florida, Michigan, and New York typically require PIP.
What Is Medical Payments Coverage (MedPay)?
MedPay is a more limited form of coverage that only pays for medical or funeral expenses after an accident—without covering lost wages or other extras.
What It Covers:
- Medical expenses for you and your passengers
- Funeral costs
Where It’s Available:
- Available in most states but not required everywhere
Key Differences Between PIP and MedPay
- Scope: PIP is broader, covering lost wages and services, while MedPay focuses only on medical/funeral expenses.
- State Requirement: PIP is mandatory in no-fault states; MedPay is typically optional.
- Use Case: PIP is suited for broader financial protection; MedPay works as a supplement when PIP isn’t required.
Understand Vehicle Injury Protection
TriPack helps business owners and commercial drivers compare auto policy options—so you can make sure your business is covered where it matters most.