Texas General Lines — Property and CasualtyPersonal LinesEasy
A client is considering purchasing a Personal Auto Policy (PAP). They are concerned about covering medical expenses for themselves and their passengers if injured in an accident, regardless of who is at fault. Which PAP coverage would address this concern?
- AUninsured Motorist Coverage
- BBodily Injury Liability
- CProperty Damage Liability
- DMedical Payments Coverage
Show answer & explanationAnswer & explanation
Correct answer: D. Medical Payments Coverage
Medical Payments Coverage in a PAP pays for reasonable and necessary medical and funeral expenses incurred by an insured and their passengers due to an auto accident, regardless of fault. It is a 'no-fault' coverage.
Why the other options are wrong
- A. Uninsured Motorist Coverage protects the insured if they are injured by a driver who does not have insurance or is underinsured, but it's not primary 'no-fault' medical coverage for all passengers.
- B. Bodily Injury Liability covers injuries to others for which the insured is legally responsible, not the insured or their passengers.
- C. Property Damage Liability covers damage to other people's property for which the insured is responsible, not medical expenses.
PAP Medical Payments Coverage
Medical Payments Coverage (Med Pay) in a Personal Auto Policy pays for reasonable and necessary medical and funeral expenses for the insured and passengers who sustain bodily injury in an auto accident, regardless of fault.
- It is a 'no-fault' coverage.
- Covers expenses incurred within a specified period (e.g., 3 years).
- Can be used as primary coverage or secondary to health insurance.
Memory trick: Med Pay 'M'akes 'P'eople 'C'overed, 'N'o 'F'ault.