I slammed my hand in a car door while picking up an order. Broken fingers. I couldn’t drive for 6 weeks. I had “Medical Payments” (MedPay) on my policy, so I thought I was fine. The adjuster paid the $500 ER bill but laughed when I asked for my lost income. “MedPay doesn’t cover wages,” he said. I should have moved to a PIP state.
Key Takeaways
- MedPay is for Bills Only: Medical Payments coverage pays doctors and hospitals. It does not pay for rent or groceries while you recover.
- PIP is the “Gold Standard”: Personal Injury Protection (PIP) pays medical bills plus a percentage of lost wages (in most states).
- Health Insurance isn’t Enough: Health insurance has deductibles and doesn’t pay lost wages. You need auto-based injury coverage.
- The “Work Loss” Waiver: Many drivers accidentally sign a form rejecting “Work Loss” coverage to save $5/month. Go check your policy now.
The “Why”: The Coverage Definition
- MedPay: Strict reimbursement for necessary medical services. $5,000 limit means $5,000 to the hospital.
- PIP (Personal Injury Protection): Often called “No-Fault” coverage. It is broader. It covers medical, lost wages, and sometimes “replacement services” (paying someone to clean your house while you are hurt).
For a gig worker, Lost Wages are the biggest risk. If you can’t drive, you earn $0.
[IMAGE: Table comparing a MedPay payout (Bills only) vs a PIP payout (Bills + Rent)]
The Investigation: Configuring the Policy
I played around with coverage configurators on Progressive and Geico to see the cost difference.
1. Adding $5,000 MedPay
- Cost: ~$5/month.
- Benefit: Pays the deductible for your health insurance. Good, but basic.
2. Adding PIP (Where available) or “Work Loss”
- Cost: ~$15 – $30/month.
- Benefit: Covers 60-80% of lost income.
- Crucial Step: You must provide proof of income (tax returns) to claim the lost wages. If you haven’t filed taxes, PIP won’t pay the wage portion.
Comparison Table: Injury Protection
| Feature | MedPay | PIP (No-Fault) | Health Insurance |
| Pays Doctors | Yes | Yes | Yes |
| Pays Lost Wages | NO | YES | NO |
| Pays Deductibles | Yes | Yes | N/A |
| Fault Required? | No | No | No |
Step-by-Step Action Plan
- Check Your State: Are you in a PIP state (like FL, NY, NJ, MI)? If so, do not waive the “Work Loss” portion.
- Add “Income Disability” Riders: If you are not in a PIP state, ask your agent for “Income Loss” protection or buy a separate Aflac-style accident policy.
- File Your Taxes: You cannot claim lost gig wages if you cannot prove you had gig wages.
FAQ
Can I have both MedPay and Health Insurance?
Yes. MedPay pays your Health Insurance deductible/copays. It effectively makes your crash “free” medically.
Does Uber’s insurance pay lost wages?
Generally, no. Their Optional Injury Protection (if you bought it via the app, usually ~3 cents/mile) does, but the standard free policy does not.