What does Part B auto coverage stand for?


Part B coverage refers to the medical payments coverage frequently offered by insurance companies to the buyers of Personal Auto policies (PAP).

Essentially, it guarantees that all medical or funeral expenses of the insured and the occupants of the insured's vehicle will be covered if they sustain bodily injuries or die as a result of a car accident within three years of the accident.

How Part B Auto Coverage Works

  1. The insurance company promises to cover all medical, X-ray, surgical, dental or funeral expenses that the insured or the passengers in the insured's automobile have sustained.
  2. There are two groups of insured people under the Part B coverage: the insured and members of the insured's family, and other individuals who occupy the insured's covered automobile. However, Part B coverage does not apply to passengers in a non-owned auto driven by the insured, i.e. occupants of the auto which you have been behind the wheel of, will not receive medical compensation under your Auto insurance policy if you don't own the vehicle.
  3. The medical payments coverage indemnifies the injured insured or occupants of the insured's car, regardless of who has caused the accident. Even if the insured is at fault, the insured's will receive medical expense compensation.
  4. Medical payments benefit limits are significantly lower than, say, liability limits. Medical benefit limits are usually between $1000 and $10,000 per injured person in a car accident.
  5. Medical payments coverage cannot replace the insured's health insurance if the insured has such. Instead, it is meant to pay for medical expenses that your health insurance does not cover. This means that if you have Part D coverage and you are involved in a car accident, your health insurance will be used to pay for any medical expenses it covers, and the ones not covered by it are left for the medical payments auto coverage to pay.
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