Before you go off and hit the road, it’s important to get auto insurance coverage first. After all, having car insurance is a legal requirement for anyone who owns a road-worthy vehicle in almost every country.
As you might have already heard, insurance policies are complex. To ensure that you’ll arrive at the most suitable coverage, it’s best to familiarize yourself with a few insurance terms first. The term, “Personal Injury Protection (PIP)", is one of those you might want to understand.
Below is a brief guide on what you need to know about this coverage. Read on to know what it means and how it applies and see for yourself whether it is the perfect match for your road needs. Check out our discussion below to learn more.
What Is Personal Injury Protection (PIP)?
Personal injury protection (PIP) – also called “no-fault insurance” – is a feature of an automobile insurance plan that pays for the medical expenses of car-related injuries.
In other words, when one got into a car accident and got hurt, PIP will take on the responsibility of paying the medical bills, and in many cases, even lost wages of policyholders.
Its other name, “no-fault insurance”, summarizes its unique characteristic as insurance coverage. Specifically, as the name suggests, PIP pays out claims regardless of who is at-fault for the accident.
How It Works
Typically, in the event of an accident, the standard practice is that the party at fault will cover the damages and medical expenses of the other party through their insurance provider.
However, this is not the case for people with no-fault insurance. Specifically, when a Personal Injury Protection coverage is in place, it won’t matter who is at fault for the accidents, as each driver will have to rely on their own insurer to get the coverage they deserve.
What Does it Cover?
Specifically, PIP covers minor car-related injuries. To shoulder the necessary medical expenses of the policyholder, the insurance carries a minimum coverage amount and a per-person maximum coverage limit.
Generally, the specifics of PIP vary by state. However, among the most common expenses it shoulders include hospitalization expenses, operations, rehabilitation costs, lost wages (if unable to work), funeral expenses, and others.
How to Get PIP
To date, PIP insurance is mandatory in 13 states. These include the District of Columbia, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Meanwhile, it is considered an obligatory add-on to auto insurance in Arkansas, Delaware, Maryland, Oregon, and Texas. In states where PIP is mandatory (also called no-fault states), the local government will set the minimum coverage requirement.
Meanwhile, maximum coverage limits are decided by insurance companies. Often, the maximum amounts score to no more than $25,000.
If you don’t live in a no-fault state, you can still opt to avail PIP if you want to. However, before you do, it’s best to check out your health insurance to learn how it covers expenses related to car crashes and assesses whether getting a PIP is still worth it.
The Bottom Line
Are you satisfied about what you’ve learned regarding Personal Injury Protection (PIP)? To know how you can apply for one, it’s best to visit the website of your own state’s government.
If you’re a resident of District of Columbia, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, or Utah, getting PIP is mandatory. Would you like to learn more? Consult an insurance analyst today!
