The Importance of Personal Injury Protection (PIP) in Car Insurance
Personal Injury Protection (PIP) Insurance covers medical expenses and lost wages if you or one of your passengers is injured in an automobile accident. In most states, PIP insurance is optional. In 16 states, however, you must have a minimum level of PIP insurance.
The PIP coverage may overlap with MedPay or health insurance. However, there are situations when it is recommended to have multiple policies.
Health insurance may cover additional expenses if the medical care exceeds the auto policy PIP limit. Per-person coverage limits the amount of money that can be claimed if more than one person is injured in an accident.
What is Personal Injury Protection Insurance?
PIP is also available if you are a passenger or pedestrian in another person’s vehicle or hit by a vehicle while on a bicycle or as a cyclist.
PIP insurance is different than bodily-injury liability insurance. While PIP covers your expenses, liability pays for other drivers’ and passengers’ medical bills when you cause an accident.
How does Personal Injury Protection Works
The requirements for auto insurance and the features available vary from one state to another. PIP coverage, in particular, is only offered in states with no-fault laws.
In no-fault states, the policy of a policyholder who is injured in an accident pays for their medical care, regardless of the cause. PIP policyholders can still receive benefits if the other party does not have insurance.
What is the cost of PIP insurance?
PIP insurance is inexpensive when considering the benefits it can offer drivers following an accident. You can expect to pay between $5 and $50 monthly to cover the PIP coverage limits.
The cost of no-fault policies is usually higher than in states with at-fault laws. Personal injury protection in states with no-fault laws is usually associated with higher premiums, but this is not always the case.
The costs of medical care that PIP will cover in the event of an accident can often be much higher than what you have paid for the coverage. You can afford to pay for medical services not covered by liability coverage. That is why PIP insurance is required in many states.
You may not need PIP coverage if you live in a state where the driver is at fault, and you can cover your medical costs without filing a claim. The generous PIP coverage limits and low cost make this a great option for eligible drivers.
Personal Injury Protection (PIP) vs Liability Insurance
Liability insurance is not the equivalent of personal injury protection. PIP covers medical costs for policyholders and anyone in the vehicle when the accident occurred, regardless of fault.
Liability insurance covers medical costs for the third party, not the policyholder, if the policyholder is found to be at fault.
Liability insurance covers injuries to another person, like a pedestrian or driver and passengers of another vehicle. This insurance does not cover you if you are the one who caused the accident.
These policies are usually taken out by financial advisers, business owners and landlords, doctors and lawyers, or anyone at risk of being sued.
How do you file a PIP claim?
You can submit your claim online or by phone, just like with any other insurance. PIP helps pay for immediate medical expenses after an accident.
For ongoing claims that are not urgent, you will need to pre-approve or review your treatment plan. That can be done with an expert medical advisor of your insurer or a third-party medical claims processor.
You can be examined by any medical professional of your choice or receive partial reimbursement from your auto insurance company.
Your policy may cover a different amount depending on the state and plan. For example, PIP will only cover 80% of medical expenses in Florida.
New York requires that all medical bills be submitted within 45 calendar days of the treatment to qualify for payment. If not, written explanations are required. Keep a copy of the PIP claim requirements from your insurance agent if you are injured.
Minimum PIP Requirements for Each State
PIP is also known as “no-fault” insurance since you must have a minimum level of PIP coverage if you reside in a state that does not assign blame.
In no-fault states, the insurance company will pay for your expenses even if someone else caused the accident. However, a threshold must be met. Depending on the state, the “tort” thresholds may be monetary or verbal.
Before you can sue a driver, the medical expenses of an individual or accident must exceed a certain amount set by your state. Verbal thresholds define a specific type of injury you must meet before filing a lawsuit.
Verbal thresholds vary by state but typically require that an individual has suffered a permanent and significant loss of bodily function, injury, disfigurement, or death. The tort thresholds can be affected by other variables, such as whether a driver is under the influence.
Do I Need Personal Injury Protection?
The Personal Injury Protection (PIP) coverage pays for medical expenses and rehabilitation, as well as funeral and burial costs. Bodily Injury Liability coverage pays for injuries you cause.
What is PIP (Personal Auto Policy)?
Personal Injury Protection is a type of auto insurance that pays for the medical bills of a driver after an accident. It is required in states with no-fault and is similar to the medical payments coverage.
Does using PIP raise your insurance?
You may see an increase in your insurance rates if you choose to use PIP. That depends on the state, your insurance provider, and your driving record. Consult your insurance agent to determine if you will see an increase in your premiums following a PIP.
Conclusion:
Your car insurance policy should include Personal Injury Protection coverage (PIP). It provides financial protection to you and your passengers in an accident.
However, it also ensures that all medical expenses are covered, regardless of fault. The PIP is a valuable addition to your car insurance. Make sure you look at the options available and choose one that meets your needs.
