Will Auto Insurance Quotes Be Affected by Obamacare?
Obama’s Patient Protection and Affordable Care Act (Obamacare) has the green light—courtesy of this past election. Insurers and states are still scrambling to figure out how it will be administered in ways that implement needed changes. The question on many people’s minds is how this new law will affect the medical payments option.
What Does Obamacare Cover? Obamacare covers a number of areas, including:
- Access to health insurance for over 30 million Americans
- The ability of individuals and businesses to purchase affordable health insurance plans from a regulated marketplace
- The assurance that insurers don’t discriminate against insuring people with pre-existing conditions
- Additional investments in Women’s health
- Senior discounts on name-brand drugs
The Medical Payments Option of Auto Insurance
As it stands, an auto insurance medical payments option is designed to give drivers and extra cushion of coverage in case of an accident. Insurance coverage can vary from payouts of $600 all the way up to $150K or more. The medical payments option is easy to add to a policy, since it only costs the insured an additional $3 to $4 per month to maintain it. Regardless of who’s at fault, in many instances, the medical payment options will cover the insured and the passengers who are injured.
The fact is that many people believe that many employer and private insurance health plans will pay for medical expenses resulting from a vehicle accident. This isn’t always true. The odds are the majority of health insurance policies will not pay for medical expenses incurred as a result of auto injury.
There is a possibility that insurance providers are/will raise insurance quotes as they anticipate what they think the costs of Obamacare will be? If you’ve had a policy with an insurer for many years, and your rates are increasing, call and ask why! Are car insurance rates rising because insurance companies are paying medical bills for those injured in car accidents? Or, are insurance companies raising rates simply in anticipation they will be forced to provide a specific coverage due to your injury or a passenger’s injury? The case may be made that it is a validated increase. Or, the case can be made that companies raise rates simply to increase profits.
Speak with Your Insurance Agent
The laws are complex, and it often takes a person with legal training to interpret them. It’s difficult to know the type and amount of coverage you need without the help of an expert. It’s also difficult to know If your company will raise its auto insurance quotes as a result of increased client insurance coverage, or simply as a result of a need to increase profits by passing the “buck” to the consumer. Talk with your insurance agent and get the straight facts. If you’re not happy with the answers, shop around.