It is no secret that, because the economy has taken a nosedive, most families are reevaluating their expenses, cutting costs or “trimming the fat” whenever possible. Although it may be tempting, consumers should think long and hard before lowering their automobile insurance coverage or cancelling some of the “extras” in their policy, such as medical payments coverage (also known as “medpay”). This is a particularly important decision as most companies are also reevaluating their expenses and “trimming the fat” whenever possible, and new cost cutting measures by auto insurance companies may have a negative impact on the average family.

Auto insurance companies make money by collecting more in premiums than they pay in benefits. In the last several months, innocent victims who have been injured in automobile accidents have learned that many insurance companies are (1) unwilling to pay fair value for the injuries received; (2) disputing liability even when the plaintiff, defendant, and police all agree to who was liable; and (3) dragging out paying claims to keep insurance payouts in the company’s coffers (and the interest they earn) for as long as possible. These tactics are having a negative impact on those who are injured and seeking recovery.

Accident victims do not usually receive any compensation prior to settling their claim, a process that can take months or even years. As a result of this delayed recovery, unanticipated expenses become due regardless of whether the injured party has the money to cover these costs prior to settlement. Medical deductibles, co-pays, and non-covered medical expenses can quickly add up, and as a result, many accident victims’ credit has been ruined because they were unable to pay these expenses when the insurance company refused to settle the case for a fair amount or in a timely manner.

Medpay is coverage that provides money upfront to help pay accident related medical expenses, co-pays, and other non-covered out-of-pocket medical expenses resulting from an automobile accident. Along with providing immediate payment to medical providers, medpay also provides the peace of mind that credit ratings will not be ruined simply because of an auto accident. If you have recently cancelled your medpay coverage or have never had medpay, please contact your automobile insurance provider for a price quote.

If you are in an automobile accident, you should consult with an attorney who can explain your legal rights. I will gladly meet with you in person, speak with you by telephone, or come to you, all at no charge.