When purchasing car insurance, most of us just think about the fundamentals: liability, collision, and comprehensive. There is one product that appears to baffle people, though — personal injury protection. It's sometimes abbreviated as "PIP" on estimates or policy statements, and you might wonder whether you need it.
This article will dissect personal injury protection, how it operates, and whether it's the extra cost on your auto policy you should be paying. Here's PIP insurance explained:
Personal injury protection is a form of car insurance that pays for medical bills and other personal expenses if you get injured in a car accident, whether or not you were involved in a collision with another vehicle or someone crashed into you. PIP covers you for your own damage.
It's also referred to as "no-fault insurance" because you do not have to prove the other driver was at fault in order to get benefits. You simply report it to your own company and receive assistance in paying for things like:
PIP pays promptly and beats the delays found through the justice system. It allows the victim of an accident to get their medical treatment without first waiting for fault to be determined by the court.
No, personal injury protection is not automatic. Not many states enact laws that require PIP coverage. They are typically referred to as "no-fault" states. In those states, motorists are required to have PIP coverage within their car insurance policy.
Some of the most popular states where PIP is mandatory are listed below:
Florida
These states mandate that drivers exhaust their own PIP coverage before they sue someone else or recover on their liability coverage. The aim is to reduce suits and accelerate medical treatment following crashes.
Other states, however, do not have PIP as a requirement. Rather, it is a voluntary option. If you reside in a non-requiring state, you will get to decide if you want to add it or not, but adding it can come with repercussions.
Even though you may reside in a state where personal protection is optional, there are good reasons to take it. Medical costs in the United States are quite high. Suppose you are injured in an automobile accident and do not have proper medical insurance. PIP can pay your expenses.
PIP even covers expenses other than medical. While regular health insurance usually does not cover, PIP can cover:
All these additional benefits can add up significantly following an accident. Without PIP, you may be out of pocket or dealing with lengthy court claims for reimbursement.
Both pay for your medical expenses following an accident, with some variations:
So in choosing between the two, consider what you need. If you already have good health insurance and simply need to supplement co-pays, MedPay would suffice. But if you want more comprehensive coverage such as lost income and recovery assistance, personal injury protection is the way to go.
There are a number of advantages of PIP insurance that make it worth it, particularly if you don't wish to utilize health insurance alone or wait for a court settlement.
It's a legitimate question, and it depends on your unique situation.
If your health insurance policy includes limited benefits, high deductibles, or does not cover accident-caused injuries, PIP can be a smart add-on. PIP can pay out before your health insurance comes into effect, and it covers other types of loss.
For instance, if you're hurt and can't work for a month, health insurance won't cover your rent or groceries — but PIP will. It's meant to cover actual-life expenses, not a bill from a doctor.
Conversely, if you have great health insurance and disability coverage through work, you may not need PIP. But most drivers do opt for it as an added layer of protection.
The cost of PIP coverage varies by state, vendors, and the level of protection you select. Typically, PIP is not as expensive as collision or liability coverage. In some other states, it may only add a few dollars to your premium per month.
If you're on a tight budget, you may be able to opt for reduced PIP limits to save money. Keep in mind: the more you protect yourself, the greater the portion of financial assistance you'll receive in the event of an accident.
Talk to your insurance representative. They will be able to contrast how PIP will influence your premium and what's available in your state.
You should strongly consider adding personal injury protection to your policy if:
Even though it is not mandatory, PIP provides you with coverage for surprise expenses that other aspects of your auto insurance do not.
There are instances where you may choose to waive PIP coverage:
You reside in a state where PIP is not mandatory.
Still, it’s worth at least getting a quote and comparing how much PIP would cost. Sometimes, the price is low enough that it’s worth it for the added peace of mind.
If you're injured in a car accident and you carry injury protection, contact your insurer right away. Most have numbers or apps to call or use to report a claim.
You'll be asked to furnish:
After your claim is processed by the insurance company, they will pay you or your physicians straight away. Since PIP is no-fault, they do not typically hang back and wait to see if the driver was at fault before making payment.
Personal protection is one of those kinds of insurance policies drivers forget about — until they need it. It's not just for doctor visits. It assists you in recovering from a car accident physically, financially, and emotionally.
Although it's mandatory in a few states, it can even become a wise addition in other states where it's not mandatory. PIP insurance perks extend far beyond just the medical assistance. It completes the gaps in medical insurance and accelerates your recovery process.
This content was created by AI