Why Do You Need Personal Injury Protection (PIP)?
‘No-fault insurance’ is also known as Personal Injury Protection (PIP). It is a component of an automobile insurance plan which covers the healthcare expenses caused by a car accident. For both affected policyholders and passengers, PIP provides medical expenses, even if someone doesn’t own health insurance. Sometimes Health insurance also covers further expenses if the auto insurance policy’s PIP can’t bear the cost of essential medical care exceeds. Policies have a maximum amount of per-person, which means that coverage is restricted to a certain amount per person if more than one person gets hurt in an accident.
What Does Personal Injury Protection Cover?
Personal Injury Protection insurance bears expenses which result when you, anyone insured by your policy, or your passengers get wounded in a car accident and if no fault can be recognized. It covers required medical procedures as well as reasonable expenditures related to recovery as you recover from an accident. The expenses must have to be related to the injury. That means that PIP won’t pay for the property damaged by the accident. Depending on which state you are in, the types of expenses covered vary. Normally, the following are covered by PIP.
Personal Injury Protection covers your medical bills and also those of your passengers and other people insured by your policy, except for expenses paid for by health insurance. Even if you’re not driving while the accident takes place, your coverage covers you automatically. For instance- if you get hit by a car at the time of walking.
Even your Personal Injury Protection coverage may be applied for your health insurance deductible. Medical bills are typically defined as “reasonable” or “necessary” expenditures, which may include:
- Surgery, emergency care, nursing, X-rays, prescriptions, dental care and prosthetic devices.
- Therapy, remedial care and rehabilitation.
- Psychiatric and psychological care.
- Optometry services.
- Speech and audiological services.
- Nonmedical care which is in accordance with your religious beliefs.
If you become injured from a car accident and you can’t go to work, some forms of PIP insurance replaces some of your wages. However, not every insurer offers this type of PIP. Also, it may cost some extra bucks to add to your base insurance policy.
Insurers usually decrease the amount you’re owed by 20% besides any applicable deductible. Your earnings settlement may also be reduced by social benefits you take, such as workers’ compensation or Social Security disability insurance. It depends on state law.
Personal Injury Protection coverage can also pay out a small amount to the survivors of someone killed in a no-fault auto accident. It is called a death benefit. The amount is usually limited to a dollar amount or the remainder of any unused PIP benefits.
However, if you already own life insurance, the death benefit of PIP will be very small in comparison. As life insurance covers you if you pass away in a car accident, the PIP provision for death benefits isn’t worth it that much.
Since the death benefit provision, your PIP may also cover benefits that provide compensation for funeral expenses. But, it will also be limited by the terms of your policy. As funerals can be very costly, the funeral expenses provision may not provide you with the full amount of coverage you’d need for the reimbursement.
When your injury binds you to become unable to do necessary services, the expenses you have to make to hire people to complete those services may be eligible for compensation under your PIP coverage. Such essential services include:
- Child care
- Lawn mowing
- House cleaning
- Shoveling snow
- Doing laundry
What is not covered by PIP insurance?
Personal Injury Protection coverage has a range of costs that are not included. If you suffer in an accident that was caused by one of these exclusions, you’ll be disqualified to receive reimbursement under the PIP terms. Common exclusions are:
- The driver did the accident intentionally.
- The driver was committing a crime, including fleeing from the police.
- The driver was driving the car for a fare, like for Uber or as a taxi.
- The injured person was struck by or was occupying a car you or an immediate family member owns that was not insured.
- The injury was caused because of perilous human activity, such as war, insurrection, rebellion, or a nuclear explosion.
- Property damage is also not covered by Personal Injury Protection. If the property damage was caused by another driver, then his or her property damage liability coverage will provide reimbursement. If you caused the damage, or if a force beyond your control (other than a driver) caused the damage, your collision insurance or your comprehensive insurance will reimburse you.
Where You Require Personal Injury Protection (PIP)?
PIP auto insurance is essential in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Puerto Rico. It is a mandatory add-on to auto insurance in Arkansas, Delaware, Maryland, Oregon, and Texas and an optional add-on in New Hampshire, South Dakota, Virginia, Washington, Wisconsin, and Washington, D.C. That’s a grand total of 22 states, one territory, and one federal city. Minimum coverage requirements are fixed by the governments and can vary. Maximum amounts are determined by insurance companies and it varies, but they are usually no more than $25,000.
Besides US, different countries also have PIP policies. The features and benefits vary from country to country and state to state. You can take help from specialists. For instance- personal injury solicitors Dublin can help you with PIP insurance in Dublin.
Do You Need PIP?
If you are living somewhere where PIP coverage is required, you must claim under that policy before you turn to your health insurance. However, even if it is not required, PIP insurance offers some benefits that you won’t receive from a health insurance policy. So, if you want to receive some benefits, PIP will definitely help you. But where it is not a must, you can simply avoid.