Personal injury protection (PIP) insurance helps with expenses, including medical bills, lost wages, and funeral costs, regardless of who caused the vehicle accident. The standards for this coverage vary from state to state.
Sometimes, health insurance will cover additional costs if the cost of required medical care exceeds the PIP limits of the auto insurance policy.
What distinguishes medical payment coverage from personal injury protection?
You and your family who reside with you may be covered under PIP and medical payments. PIP and Med-Pay may also cover your passengers. What each coverage will pay for in the event of an accident-related injury is the crucial distinction between the two plans.
Insurance with medical payment assistance contributes to the cost of medical care for injuries sustained in accidents. If the wounds from the accident result in death, it can also pay funeral costs.
PIP provides financial assistance with both medical and non-medical expenses. These costs may include lost wages or hiring someone to complete jobs you cannot complete because of your injuries.
What is covered by personal injury protection?
PIP coverage typically includes:
- Medical costs associated with an automobile accident
- Wages lost as a result of the wounds
- Costs of rehabilitation
- Services to replace your inability to care for your family or yourself due to the injury, including replacement services for home duties and child care
- Funeral costs and survivors’ compensation
PIP promises to compensate victims of auto accidents for their losses rapidly. PIP claims are paid out regardless of who caused the collision, so there is no need to wait for the outcome of a culpability case.
What is not protected by PIP or no-fault insurance?
After an automobile accident, expenditures or payments that are unrelated to personal injuries are not covered by no-fault insurance. For instance:
- Unless you reside in Delaware, no-fault insurance does not cover damage to your vehicle. If you’ve added collision coverage to your policy, it will assist in covering the cost of repairing your automobile if it is damaged in an accident with another vehicle.
- Theft of a car is not covered by no-fault insurance. If you’ve chosen to include comprehensive coverage, it will aid in replacing your vehicle in the event of theft.
- There is no coverage for damage to other people’s property under no-fault insurance. Your property damage liability coverage helps pay for the harm you do to another person’s automobile or property if you cause a car accident.
- No-fault insurance does not pay for medical costs higher than your plan’s limits.
- Your PIP insurance won’t cover medical expenses or lost wages exceeding your policy’s limits.
- If another motorist caused significant harm to you or another person in your car, or if your medical expenses are more than a particular amount, you might be able to sue them for your injuries.
Do I require personal injury insurance?
Some states mandate PIP for drivers. In some states, it is a mandatory benefit, whereas it is not in others.
In states where it is optional, PIP is typically a wise choice.
This is because PIP can assist in paying for costs like your health insurance deductible, missed wages, and substitute services for jobs you cannot perform due to your injuries, including child care or house cleaning.
How does PIP interact with other car insurance types?
Personal injury protection (PIP) is often the first recourse you would use if another driver hurt you and your auto insurance covered it.
You can submit a claim under the other driver’s liability insurance if your medical expenses exceed the limitations of your coverage.
If your injuries are severe and permanent or if your medical costs exceed the state’s tort limit, you can choose to forego your PIP coverage and sue the driver who caused your accident.
Liability insurance against personal injury protection (PIP)
Liability insurance and personal injury protection are not the same things. No matter who was at fault, PIP covers medical expenses for policyholders and anybody else who was in their car at the time of the accident.
If it is ruled that the policyholder is at fault, liability insurance pays for the third party’s medical expenses rather than the policyholder’s. Liability insurance covers harm to a third party, such as a passenger in another vehicle. The insurance does not cover your medical expenses if you were the one who caused the accident.
What influences PIP coverage?
Driving in a state with “no-fault” insurance does not guarantee a person’s rate won’t increase following a collision. Your final PIP insurance rate may be based on the following factors:
- Whether or not it is required in your state
- Your claims history and driving history
- Your gender and age
- Your marital status and residence
How do I decide how much personal injury protection coverage I need?
Think about your medical insurance:
You might choose less PIP coverage if you have excellent health insurance. If you are aware that your health insurance has you adequately protected, that could be a wise financial move. This is particularly valid if your health insurance deductible is modest.
Think about the deductible on your health insurance:
If you don’t have health insurance and reside in a state where PIP is optional, you should consider obtaining the most fundamental kind of protection. In most PIP states, there are no deductibles.
Identify the insurance that pays out first:
When paying out a claim, PIP typically comes before your health insurance. In most areas, if you are hurt in an auto accident, your PIP coverage will precede any health insurance you may have.
If you don’t have life insurance, add PIP:
Adding PIP can help your family pay for unforeseen expenditures if you’re in a tragic car accident.
Think about your lost income:
Can you afford to leave work if you are hurt in an auto accident if your job involves physical labor? If not, consider including PIP or raising your restrictions because it compensates for lost wages.
1-800-Injured
If you have been in a car accident, contact the 1-800-Injured car accident lawyers for assistance. They will make every effort to secure a fair reimbursement for you.
