Technically, medical insurance is any insurance which covers bodily injury or other medical needs, which includes health and any type of injury liability coverage. You are probably referring to health insurance, which does not usually cover any expenses related to auto accidents. Some health insurance policies will provide coverage for specific medical costs, such as ongoing physical therapy, but others consider all car related claims to be the responsibility of the auto insurance policies involved.

The reason a car insurance company will ask whether you have health insurance is not so that they can create limits on your coverage. You have the option of setting your own limits, and many people use limit and deductible adjustments to help get the best price possible. The reason you are asked about health insurance is to help the company determine your risk assessment, not to set policy limits. People with existing health insurance are considered to be a lower risk for auto insurance, so having health insurance is almost like getting an automatic discount on your car insurance premiums.

Most companies will also offer you a larger discount if you have more than one type of insurance policy with the same company. This includes auto and health insurances, as well as home and life insurance. And finally, if you want to have the maximum amount of injury liability insurance, one of the best things to do is to purchase what is known as an umbrella policy, which picks up on you liability insurance coverage when your auto or home coverage maxes out.