Basic automobile liability insurance, at least that mandated by the state of California, consists of property damage liability coverage and bodily injury coverage for one person/one occurrence. There is also another coverage called Medical Payments to Others, or “Med-Pay.” This is an additional coverage some people consider dropping to save money on their auto insurance premiums.
Med-Pay will cover your medical bills up to your coverage limit for you, your family and others involved in an accident which riding in your vehicle. This coverage moves with you — walking, riding in another vehicle, or on public transportation — and with your insured vehicles, regardless of who’s driving. Policy limits refer to the uppermost financial coverage available to each covered injured individual, and not a total limit.
There is also another coverage called Personal Injury Protection (PIP) that is similar to Med Pay in that both coverages will pay for physical injuries caused by an accident and because neither is concerned with who was at fault. PIP is more comprehensive but can be more expensive than Med Pay.
Remember that Med Pay only covers injuries pertaining to a particular accident and is in no way a substitute for personal health insurance. In fact, many insurers require that Med Pay limits be exhausted before your health insurance kicks in.
As always, it is best to consult your insurance professional before making any decisions that will affect your coverage.