Health insurance pays medical bills after a crash. It does not pay lost wages, pain and suffering, or the deductible and coinsurance you still owe. If the other driver has no insurance, or only state-minimum limits, those gaps land on you. Uninsured motorist (UM), underinsured motorist (UIM), and MedPay sit on your auto policy to fill them. Below we show what health insurance leaves out, how UM and UIM pay, and what to carry in Arizona, California, Nevada, and Utah.
In this comprehensive guide, we’ll explain exactly what health insurance doesn’t cover after a car accident, why uninsured and underinsured motorist coverage is essential (even though it’s gotten expensive), how medical payments coverage works, and what you need to know if you live in Arizona, California, Nevada, or Utah. We’ve also created a detailed video explanation that walks through these concepts step-by-step if you prefer a visual breakdown.
Understanding the Fundamental Gap: Health Insurance vs. Auto Insurance
Health insurance is designed to pay for medical treatment when you’re sick or injured, regardless of the cause. If you’re in a car accident, your health insurance will typically cover your doctor visits, hospital stays, surgeries, prescriptions, and ongoing care like physical therapy. That’s the good news.
The problem is that health insurance comes with significant out-of-pocket costs and coverage limitations that can leave you financially vulnerable after a serious car accident. Here’s what most people don’t realize until they’re dealing with the aftermath of a crash:
Deductibles, Copays, and Out-of-Pocket Maximums
Your health insurance plan likely includes a deductible — the amount you must pay out of pocket before your insurance starts covering costs. High-deductible health plans (HDHPs) have become increasingly common, with deductibles often ranging from $3,000 to $7,000 or more for an individual, and even higher for family coverage. If you haven’t met your deductible for the year when the accident happens, you’ll be paying thousands of dollars before your health insurance pays a cent.
Even after you meet your deductible, you’re still responsible for copays (fixed amounts for specific services) and coinsurance (a percentage of costs you pay until you hit your out-of-pocket maximum). For a serious accident requiring emergency care, multiple specialist visits, imaging, and months of physical therapy, these costs add up quickly. Your out-of-pocket maximum might be $8,000, $10,000, or even $15,000 depending on your plan.
What Health Insurance Categorically Doesn’t Cover
Beyond the direct costs of medical treatment, health insurance has absolute exclusions that leave major financial gaps after a car accident:
- Lost wages: If your injuries force you to miss work — whether for a few days, a few weeks, or months — your health insurance doesn’t replace that income. For many people, even a week or two of lost wages creates immediate financial hardship. If you’re out of work for an extended period, the financial impact can be devastating.
- Pain and suffering: This legal term refers to compensation for physical pain, emotional distress, loss of enjoyment of life, and other non-economic damages resulting from the accident. Health insurance doesn’t address these damages at all — they’re not part of the medical treatment equation.
- Permanent injury or disability: If the accident leaves you with permanent limitations, scarring, or disability, health insurance won’t compensate you for the long-term impact on your quality of life, earning capacity, or future medical needs beyond what your current plan covers.
- Future medical expenses: While your current health insurance may cover ongoing treatment, what happens if your condition requires care beyond what your plan covers, or if you lose your health insurance coverage down the road? Health insurance doesn’t provide a settlement to cover future medical costs related to the accident.
This is where uninsured motorist coverage, underinsured motorist coverage, and medical payments coverage come in — they’re not duplicating your health insurance; they’re filling critical gaps that health insurance leaves completely unaddressed.
Uninsured Motorist Coverage: Protection When the Other Driver Has Nothing
Uninsured motorist coverage (UM) protects you when you’re hit by a driver who has no auto insurance at all. This might seem like an unlikely scenario, but according to the Insurance Information Institute, recent data shows approximately 1 in 7 drivers nationwide is uninsured. In California, that number jumps to about 1 in 5. These aren’t rare edge cases — there’s a very real chance you’ll encounter an uninsured driver at some point.
What Uninsured Motorist Coverage Actually Pays For
When you’re hit by an uninsured driver and you have UM coverage on your own policy, your insurance steps in to pay for:
- All medical expenses related to the accident: This includes not just the treatment your health insurance covers, but also the deductibles, copays, and coinsurance you’d otherwise pay out of pocket. It covers medical costs even if they exceed your health insurance plan limits or if certain treatments aren’t covered by your health plan.
- Lost wages: Every day of work you miss due to injuries is compensated based on your actual earnings. This includes both immediate lost income and future lost earning capacity if your injuries prevent you from returning to your previous work or working at all.
- Pain and suffering: UM coverage provides compensation for the physical pain and emotional distress you experience as a result of the accident. The amount varies based on the severity of injuries, length of recovery, and impact on your daily life.
- Permanent injury or disability: If you’re left with permanent scarring, disfigurement, loss of bodily function, or disability, UM coverage compensates you for these life-altering impacts.
- Loss of consortium: In some cases, your spouse may be entitled to compensation for loss of companionship, affection, or relations due to your injuries.
Your UM coverage pays up to your policy limits. If you have $100,000 in UM coverage and your total damages (medical bills, lost wages, pain and suffering, etc.) are $75,000, your UM coverage pays the full amount. If your damages exceed your policy limits, you’re responsible for the difference — which is why having adequate UM limits is so important.
The Reality of Collecting From an Uninsured Driver
Some people think, “If the other driver caused the accident, I’ll just sue them for damages.” In theory, yes — you can sue an uninsured driver. In practice, this almost never results in meaningful recovery. If someone doesn’t have auto insurance, they typically don’t have significant assets to pay a judgment. You might win a lawsuit and receive a judgment for $50,000, but if the defendant has no money, no property, and no means to pay, that judgment is essentially worthless. Your UM coverage is your practical, reliable source of compensation when an uninsured driver hits you.
Underinsured Motorist Coverage: When the Other Driver’s Insurance Isn’t Enough
Underinsured motorist coverage (UIM) protects you when the at-fault driver has insurance, but their policy limits are insufficient to cover your total damages. This scenario is actually more common than being hit by a completely uninsured driver, because many drivers carry only state minimum liability limits — and those minimums are shockingly low.
State Minimum Coverage Is Dangerously Inadequate
Current state minimum bodily injury liability limits in the states we serve are:
- Arizona: $25,000 per person / $50,000 per accident
- California: $15,000 per person / $30,000 per accident (though this increased to $30,000/$60,000 in January 2025)
- Nevada: $25,000 per person / $50,000 per accident
- Utah: $25,000 per person / $65,000 per accident
These minimums were set decades ago and haven’t kept pace with medical cost inflation or the real cost of serious injuries. A single day in the hospital can easily cost $5,000 to $10,000. Emergency surgery can run $20,000 to $50,000 or more. A serious accident requiring multiple surgeries, extended hospitalization, and months of rehabilitation can generate medical bills exceeding $100,000 — and that’s before factoring in lost wages, future medical needs, or pain and suffering.
How Underinsured Motorist Coverage Works: A Detailed Example
Let’s walk through a realistic scenario to illustrate how UIM coverage functions:
You’re stopped at a red light when another driver rear-ends you at high speed. You’re taken to the emergency room with neck and back injuries. Initial ER treatment costs $8,000. You need follow-up care with an orthopedic specialist, several rounds of imaging (MRI, CT scans), and three months of physical therapy twice a week. Total medical bills: $22,000.
Your injuries force you to miss six weeks of work. Your normal gross income is $4,000 per month, so you’ve lost $6,000 in wages. Additionally, you’ve experienced significant pain, sleep disruption, inability to exercise or enjoy normal activities, and ongoing discomfort even after completing physical therapy. A reasonable valuation of your pain and suffering might be $15,000 to $20,000.
Your total damages: $22,000 (medical) + $6,000 (lost wages) + $17,000 (pain and suffering) = $45,000.
The at-fault driver’s insurance? State minimum: $25,000.
Without UIM coverage, here’s what happens: The other driver’s insurance pays their $25,000 policy limit. You’re still owed $20,000 in damages. Your health insurance has already processed your medical bills (minus your deductible and coinsurance, which you paid), but health insurance doesn’t pay you back for those out-of-pocket costs, and it definitely doesn’t cover your lost wages or pain and suffering. You could sue the other driver personally for the remaining $20,000, but if they only carry minimum insurance, they probably don’t have $20,000 in accessible assets. You’re left absorbing that $20,000 loss yourself.
With UIM coverage, here’s what happens: The other driver’s insurance pays their $25,000 limit. Your UIM coverage then pays the remaining $20,000 (assuming you have at least $20,000 in UIM coverage). You receive the full $45,000 you’re owed, properly compensating you for all your damages.
UIM Coverage Doesn’t Cover Property Damage to Your Vehicle
An important clarification: uninsured and underinsured motorist coverage specifically addresses bodily injury damages — medical bills, lost wages, pain and suffering, and related losses. These coverages don’t pay for damage to your vehicle. That’s what collision coverage is for. If the at-fault driver’s property damage liability coverage is insufficient to repair or replace your car, your collision coverage handles your vehicle repairs (minus your deductible), and your insurance company can then pursue the at-fault driver for reimbursement. Some states offer uninsured motorist property damage (UMPD) coverage as a separate option, but it’s distinct from UM/UIM bodily injury coverage.
Medical Payments Coverage: Immediate Cash Flow When You Need It Most
Medical payments coverage (MedPay) operates on a completely different principle than UM/UIM coverage. While UM/UIM is about compensating you for damages caused by an uninsured or underinsured driver (which can take months to settle), MedPay is immediate, no-fault coverage that pays your medical bills right away, regardless of who caused the accident.
How MedPay Works
MedPay is pure cash-flow coverage. If you’re injured in an accident — whether it’s your fault, the other driver’s fault, or no one’s fault — MedPay pays your medical expenses immediately, up to your policy limits, with no deductible and no waiting period. This includes:
- Emergency room treatment
- Ambulance services
- Hospital stays
- Surgeries and medical procedures
- Doctor visits and specialist consultations
- Diagnostic imaging (X-rays, MRIs, CT scans)
- Physical therapy and rehabilitation
- Prescription medications related to accident injuries
- Dental work necessitated by the accident
- Funeral expenses (in the tragic event of a fatal accident)
MedPay vs. Health Insurance: Why You Need Both
MedPay and health insurance work together, not in competition. Here’s how they typically coordinate:
Scenario 1: You have a high-deductible health plan. Your health insurance deductible is $5,000. You’re in an accident and incur $8,000 in medical bills. Normally, you’d pay the first $5,000 out of pocket, then your health insurance would cover the remaining $3,000 (subject to coinsurance). With MedPay (let’s say you have $5,000 in MedPay coverage), your MedPay pays the first $5,000 in medical bills directly — effectively covering your entire health insurance deductible. You pay nothing out of pocket.
Scenario 2: You have traditional health insurance with a moderate deductible and copays. Your health insurance has a $1,500 deductible and requires 20% coinsurance after the deductible. You have $10,000 in medical bills from an accident. Your health insurance processes the claim: you pay the $1,500 deductible plus 20% of the remaining $8,500 ($1,700), totaling $3,200 out of pocket. If you have MedPay, it pays that $3,200 in out-of-pocket costs. Again, you pay nothing.
Scenario 3: Immediate expenses before health insurance processes claims. You’re in an accident on Friday evening. The ER wants payment or a deposit before discharge. Your health insurance hasn’t processed anything yet, and you don’t have $2,000 cash on hand. MedPay can pay immediately, resolving the financial pressure while your health insurance claim is still being processed.
MedPay Covers Your Passengers Too
One often-overlooked benefit of MedPay: it covers anyone injured in your vehicle, regardless of whether they have health insurance. If you’re driving friends or family and you’re in an accident, your MedPay can cover their medical expenses too (up to your policy limits). This is particularly valuable if your passenger doesn’t have health insurance, has a very high deductible, or has health insurance that doesn’t cover certain treatments.
Is MedPay Optional?
In Arizona, California, and Nevada, MedPay is optional coverage — you can choose to add it to your policy or decline it. It’s relatively inexpensive (typically adding $5 to $20 per month to your premium, depending on the coverage amount you select), but the value it provides in the event of an accident far exceeds the cost. Common MedPay limits range from $1,000 to $10,000, with $5,000 being a popular middle-ground option.
Utah’s Personal Injury Protection (PIP): A Different Approach
If you’re in Utah, you don’t have the option of MedPay — instead, you’re required to carry Personal Injury Protection (PIP) coverage. PIP is mandatory in Utah and serves a similar function to MedPay but with some important differences.
What Utah PIP Covers
Utah PIP coverage includes:
- Medical expenses: Up to your policy limits (minimum $3,000 required by law, but you can and should carry more)
- Lost wages: Unlike MedPay, PIP in Utah covers lost income due to accident injuries, typically up to 85% of your gross income, subject to policy limits
- Funeral and burial expenses: If the accident results in death
- Household services: If your injuries prevent you from performing normal household tasks (cooking, cleaning, childcare), PIP can cover the cost of hiring someone to perform those services
How Utah PIP Works with Health Insurance
Utah is a “no-fault” state with a monetary threshold. This means PIP is primary — it pays first, before your health insurance. Your health insurance may process the claims after PIP, depending on your specific health insurance policy’s coordination of benefits provisions.
The “threshold” aspect means that in order to step outside the no-fault system and pursue a bodily injury claim against an at-fault driver (using your UM/UIM coverage or their liability insurance), your injuries must meet certain criteria: medical expenses exceeding $3,000, permanent disability or impairment, permanent disfigurement, or death. If your injuries don’t meet the threshold, PIP is your primary (and potentially only) source of compensation, which is why carrying PIP limits well above the $3,000 minimum is advisable.
Why UM/UIM Coverage Has Gotten Expensive (And Why It’s Still Worth It)
If you’ve reviewed your auto insurance policy lately or received a renewal notice, you’ve probably noticed that UM/UIM coverage has become one of the largest components of your premium — in many cases, more expensive than your liability coverage. This isn’t an accident or an arbitrary rate increase. There are concrete reasons why UM/UIM premiums have risen significantly in recent years.
The Rising Cost of Uninsured and Underinsured Motorist Claims
Several factors have driven up the cost of UM/UIM claims:
Medical cost inflation: Healthcare costs have increased dramatically over the past decade, far outpacing general inflation. What used to be a $20,000 injury claim might now be a $40,000 or $50,000 claim due to higher hospital costs, specialist fees, and imaging costs. Since UM/UIM coverage pays medical expenses, the insurance company’s exposure per claim has increased substantially.
Higher uninsured rates in some areas: Despite mandatory insurance laws, uninsured motorist rates remain stubbornly high in many states, meaning UM claims are more frequent than they were in the past.
More underinsured drivers: Even among insured drivers, many carry only state minimum limits. As medical costs rise and minimum limits remain stagnant (or increase only slightly), more drivers are functionally underinsured, leading to more UIM claims.
Larger verdicts and settlements: Juries are awarding higher damages for pain and suffering, particularly in cases involving serious or permanent injuries. This trend has increased the average payout on UM/UIM claims.
Increased litigation: More UM/UIM claims are going to litigation rather than settling quickly, which increases legal costs that insurers must absorb.
All of these factors combine to make UM/UIM coverage genuinely expensive to provide. Insurers aren’t arbitrarily raising rates — they’re pricing for real, substantial risk.
Why You Should Still Carry UM/UIM Despite the Cost
Yes, UM/UIM coverage is expensive. But consider this: the premium you’re paying — whether it’s $400, $600, or even $1,000+ per year — is insurance against a potential $50,000, $75,000, or $100,000+ loss that you’d otherwise pay out of pocket.
Think of it this way: if you’re paying $700 per year for UM/UIM coverage and you’re hit by an uninsured driver, suffering $60,000 in total damages (medical bills, lost wages, pain and suffering), your coverage just saved you $60,000 at a cost of $700. That’s not an expense — that’s a 85-to-1 return on your “investment” in the year of the claim. Even if you carry UM/UIM coverage for 20 years without filing a claim, and then finally need it once, you’ve paid $14,000 in premiums over two decades to receive $60,000 in benefits. You still come out far ahead.
More importantly, most people don’t have $60,000 sitting in savings to cover an uninsured motorist accident. Without UM/UIM coverage, that accident could force you into debt, bankruptcy, or financial ruin. The premium is high because the risk is real — and if you’re the one who experiences that risk, you’ll be profoundly grateful you paid for the coverage.
State-Specific Requirements: What You Need to Know in AZ, CA, NV, and UT
Insurance requirements and options vary significantly by state. Here’s what you need to know if you live in Arizona, California, Nevada, or Utah.
Arizona
UM/UIM coverage is optional in Arizona, but insurers are required to offer it to you. If you decline it, you must do so in writing. Many Arizona drivers decline UM/UIM without fully understanding what they’re giving up, often to save money on premiums. Given that Arizona’s uninsured motorist rate is significant, declining UM/UIM coverage is a risky choice.
MedPay is also optional in Arizona. There’s no minimum requirement, and you can choose your coverage amount based on your health insurance situation and budget.
California
California requires insurers to offer UM/UIM coverage, and you can only decline it by signing a written waiver. California also has some unique UM/UIM rules: underinsured motorist coverage is calculated on a “difference in limits” basis, meaning your UIM coverage pays the difference between the at-fault driver’s policy limits and your UIM limits (not the difference between their limits and your total damages). This can affect how much coverage you should carry.
As of January 2025, California increased its minimum liability limits from $15,000/$30,000/$5,000 to $30,000/$60,000/$15,000 (bodily injury per person / bodily injury per accident / property damage). While this is an improvement, $30,000 per person is still woefully inadequate for a serious injury, making UM/UIM coverage essential.
MedPay is optional in California, with no minimum required amount.
Nevada
Nevada requires UM/UIM coverage unless you specifically reject it in writing. The minimum UM/UIM limits must match your liability limits. If you reject UM/UIM, you’re taking on significant personal financial risk given Nevada’s relatively high uninsured motorist rate.
MedPay is optional in Nevada. Some insurers may offer it with a minimum amount (often $1,000), but it’s not required by law.
Utah
Utah requires UM/UIM coverage, and while it can technically be rejected in writing, many drivers don’t realize they have this option — and even if they do, it’s generally not advisable to reject it. The minimum UM limits in Utah are $25,000 per person / $65,000 per accident, but these minimums are often insufficient for serious accidents.
Utah also requires PIP coverage (minimum $3,000), as discussed earlier. You cannot reject PIP in Utah — it’s mandatory.
How Much UM/UIM and MedPay Coverage Should You Carry?
Minimum coverage limits are exactly that — minimums. They’re not recommendations, and they’re certainly not sufficient for many real-world accident scenarios. So how much coverage should you actually carry?
UM/UIM Coverage Limits
A common recommendation is to carry UM/UIM limits equal to your liability limits. If you carry $100,000/$300,000 in liability coverage (meaning $100,000 per person, $300,000 per accident), you should carry the same limits in UM/UIM. This ensures that you’re protected to the same degree you’re protecting others.
Consider your personal financial situation when choosing limits:
- Income: If you earn $60,000 per year, missing even a few months of work due to accident injuries could cost you $15,000 to $30,000 in lost wages. Add medical costs and pain and suffering, and a serious accident could easily generate $50,000 to $100,000+ in total damages.
- Health insurance deductible: If you have a high-deductible health plan, you’re already facing thousands in out-of-pocket medical costs. UM/UIM coverage helps ensure you’re compensated for those costs if hit by an uninsured/underinsured driver.
- Family status: If you have a spouse and children who depend on your income, the financial impact of a serious accident extends beyond just your own losses. Higher UM/UIM limits provide more protection for your family’s financial security.
- Assets: If you have significant assets (home equity, savings, investments), you have more to lose financially if you’re underinsured and have to pay accident costs out of pocket.
Common UM/UIM limit choices range from $50,000/$100,000 (absolute minimum for meaningful protection) to $100,000/$300,000 (better protection) to $250,000/$500,000 or even higher (comprehensive protection). The cost difference between minimum limits and substantially higher limits is often surprisingly small — sometimes just a few hundred dollars per year for significantly better protection.
MedPay Coverage Limits
Your ideal MedPay limit depends primarily on your health insurance deductible and out-of-pocket maximum:
- If your health insurance deductible is $3,000 or less: Consider $5,000 in MedPay. This covers your deductible plus some coinsurance/copays.
- If your health insurance deductible is $5,000 to $7,000: Consider $10,000 in MedPay. This covers your deductible and provides a cushion for additional out-of-pocket costs.
- If you have a high-deductible health plan with a deductible of $7,000+: Consider $10,000 to $25,000 in MedPay, depending on your out-of-pocket maximum and financial situation.
- If you frequently have passengers (family, friends, carpool): Consider higher MedPay limits since it covers all occupants of your vehicle.
For Utah PIP, the same logic applies, but remember that PIP also covers lost wages, so you might want higher limits if you have significant income that would be lost during recovery from injuries.
What to Do If You’re in an Accident
Understanding your coverage is one thing; knowing how to use it effectively when you’re actually in an accident is another. Here’s what you should do:
Immediate Steps After an Accident
- Ensure safety and call 911 if anyone is injured. Your health and safety come first.
- Call the police and file a report, even if the accident seems minor. This creates an official record.
- Gather information from the other driver: name, contact info, insurance company, policy number, license plate, driver’s license number. If they claim to have insurance, don’t just take their word — get the actual policy information.
- Document the scene: Take photos of all vehicles, damage, road conditions, traffic signs, and injuries if visible.
- Get witness information if there are any witnesses to the accident.
- Seek medical attention immediately, even if you feel fine. Some injuries (soft tissue injuries, concussions, internal injuries) don’t present symptoms immediately. A gap between the accident and seeking treatment can be used against you later to claim your injuries weren’t caused by the accident.
Reporting the Accident to Your Insurance
Report the accident to your own insurance company as soon as possible, even if you weren’t at fault and even if the other driver has insurance. Your insurer needs to know about the accident to protect your interests, and if you have MedPay or PIP, you’ll want to start that claim immediately so your medical bills are covered.
If the Other Driver Is Uninsured or Underinsured
If the other driver has no insurance or insufficient insurance, notify your insurance company immediately that you’ll be filing a UM or UIM claim. Your insurer will investigate the accident, determine fault, and assess your damages. This process can take time — often several months — so patience is important. Document everything: all medical treatment, bills, prescriptions, therapy appointments, time missed from work, and how the injuries have affected your daily life.
Using MedPay or PIP
Your MedPay or PIP claim should be straightforward. As you incur medical expenses related to the accident, submit them to your auto insurer for payment under your MedPay or PIP coverage. These claims typically process much faster than UM/UIM claims because there’s no fault determination needed — MedPay and PIP pay regardless of who caused the accident.
Common Misconceptions About UM/UIM and MedPay
“I have good health insurance, so I don’t need this.”
As we’ve explained throughout this guide, health insurance and auto insurance serve different purposes. Health insurance doesn’t cover lost wages, pain and suffering, or the full financial impact of an accident caused by an uninsured driver. Even “good” health insurance leaves significant gaps.
“UM/UIM is too expensive; I’ll take my chances.”
The cost of being hit by an uninsured driver without UM/UIM coverage can easily exceed $50,000 to $100,000 for a serious accident. The annual premium for UM/UIM coverage — even if it’s $1,000 per year — is a bargain compared to the potential out-of-pocket cost of a single accident. You’re not paying for something you’ll probably never use; you’re protecting yourself against a financially catastrophic scenario that’s far more common than you think.
“If the other driver doesn’t have insurance, I’ll just sue them.”
You can sue an uninsured driver, but winning a judgment and actually collecting money are two very different things. If they don’t have insurance, they likely don’t have assets. A judgment against someone with no money is worthless. UM coverage is your practical remedy.
“My employer provides disability insurance, so I don’t need coverage for lost wages.”
Employer-provided short-term or long-term disability insurance typically has waiting periods (often 7 to 14 days for short-term disability, 90 to 180 days for long-term disability) before benefits begin, may only cover a percentage of your salary (often 60% to 70%), and may have other limitations or exclusions. UM/UIM coverage compensates you for 100% of your lost wages from day one, with no waiting period.
“I’m a safe driver, so I won’t be in an accident.”
You might be the safest driver in the world, but you can’t control other drivers. You can’t prevent someone from running a red light and T-boning your car, or rear-ending you while you’re stopped at a light. Being a good driver doesn’t protect you from other people’s negligence or recklessness.
Reviewing Your Current Coverage
When was the last time you actually looked at your auto insurance policy? Most people set up their coverage once and never review it again — until they need it and discover they don’t have what they thought they had.
Pull out your current auto insurance policy (or log into your insurance company’s website and download your declarations page) and check:
- Do you have UM/UIM coverage? Look for “uninsured motorist” and “underinsured motorist” on your declarations page. If you don’t see it listed, you probably don’t have it.
- What are your UM/UIM limits? Are they the state minimum, or do you have higher limits? Compare them to your liability limits — are they equal?
- Do you have MedPay (or PIP in Utah)? Again, check your declarations page. If it’s not listed, you don’t have it.
- What are your MedPay/PIP limits? Do they align with your health insurance deductible and out-of-pocket maximum?
- When did you last update your coverage? If your coverage limits have been the same for 5+ years, they’re probably outdated. Medical costs have increased, your income has likely increased, and your coverage should increase accordingly.
If you’re not sure what you have, or if you’re realizing your current coverage is insufficient, reach out to us for a policy review. We work with drivers across Arizona, California, Nevada, and Utah to make sure they have appropriate protection — not just the minimum required by law, but coverage that actually protects their financial well-being. You can also watch our detailed video breakdown of these concepts for a visual walkthrough of how these coverages work.
The Bottom Line: Health Insurance and Auto Insurance Work Together, Not Separately
Health insurance and auto insurance aren’t redundant — they’re complementary. Health insurance pays for medical treatment. Auto insurance (specifically UM/UIM and MedPay/PIP) fills the gaps health insurance leaves: out-of-pocket medical costs, lost wages, pain and suffering, and protection when the at-fault driver has no insurance or insufficient insurance.
Trying to save money by declining UM/UIM or MedPay is a false economy. The small amount you save on premiums exposes you to potentially catastrophic financial losses if you’re hit by an uninsured or underinsured driver. The question isn’t whether you can afford UM/UIM and MedPay coverage — it’s whether you can afford NOT to have it.
If you’re ready to review your coverage and make sure you’re properly protected, get a quote or schedule a policy review with us. We’ll walk you through your current coverage, explain your options, and help you make informed decisions based on your specific situation and needs. Just as business owners need to protect key people in their organization, individuals need to protect themselves and their families from financial risks. Whether you need business insurance or personal auto coverage, the principle is the same: proper insurance isn’t an expense, it’s protection.
Don’t wait until you’re in an accident to discover you don’t have the coverage you need. Take the time now to review your policy, understand what you have and what you’re missing, and make sure you’re truly protected.
Frequently Asked Questions
Does health insurance cover everything after a car accident?
No. Health insurance covers medical treatment but does not cover lost wages, pain and suffering, permanent disability compensation, or out-of-pocket costs like deductibles and coinsurance. If an uninsured or underinsured driver hits you, health insurance alone can leave you tens of thousands of dollars short.
What is the difference between uninsured motorist and underinsured motorist coverage?
Uninsured motorist coverage (UM) protects you when the at-fault driver has no auto insurance at all. Underinsured motorist coverage (UIM) protects you when the at-fault driver has insurance but their policy limits are not enough to cover your total damages. Both cover medical expenses, lost wages, and pain and suffering up to your policy limits.
What is MedPay and how is it different from UM/UIM?
MedPay is immediate, no-fault coverage that pays your medical bills right away regardless of who caused the accident, with no deductible and no waiting period. UM/UIM is fault-based coverage that compensates you for all damages including lost wages and pain and suffering, but only when the other driver is at fault and uninsured or underinsured. MedPay handles cash flow; UM/UIM handles full compensation.
Is UM/UIM coverage required in Nevada, Arizona, California, and Utah?
Nevada and Utah require UM/UIM coverage unless you reject it in writing. Arizona and California require insurers to offer it, but you can decline it by signing a written waiver. In all four states, declining UM/UIM coverage is a significant financial risk given how many drivers carry only state minimum limits or no insurance at all.
How much UM/UIM coverage should I carry?
A common recommendation is to match your UM/UIM limits to your liability limits. If you carry $100,000/$300,000 in liability coverage, carry the same in UM/UIM. The cost difference between minimum limits and substantially higher limits is often just a few hundred dollars per year, but the protection difference in a serious accident can be tens of thousands of dollars.
