Personal Injury Protection (PIP), otherwise known as “no-fault” insurance, is a type of automobile insurance that covers healthcare expenses resulting from injuries sustained in car accidents. According to the Insurance Information Institute (III), the policy has its origins during the early 1970s by lawmakers who sought to make it easier to determine the one at fault in car accidents.
In this blog, we’ll give a brief overview of personal injury protection and whether purchasing the policy is necessary or not.
What is PIP?
A personal injury protection policy pays for the medical and rehabilitative costs for you and any passengers in your car after you’ve been injured in a car accident. PIP also comes into effect if you’re the passenger in another person’s vehicle or if you got hit while walking or cycling. PIP differs from bodily liability insurance as the latter comes into effect when you’re the one at fault whereas PIP pays for health expenses stemming from other people’s mistakes.
What Does PIP Cover?
PIP covers the necessary medical bills and procedures including any reasonable expenses associated with the rehabilitation process. The extent of the coverage may vary from one state to another and typically include the following costs:
- Lost wages if you are unable to go to work
- Continued professional care
- Accidental death benefits
- Funeral expenses
- House cleaning and/or childcare if the injured person is unable to carry these out himself
PIP Insurance by the State
States in which personal injury protection is required include Washington, Florida, New York, Massachusetts, North Dakota, Utah, Oregon, Hawaii, Kansas, Kentucky, Minnesota, Michigan, New Jersey, Puerto Rico, Delaware, and Pennsylvania. Other states offer PIP as an addition to basic insurance packages. These states include Maryland, New Hampshire, and Arkansas.
Minimum coverage requirements vary from one state to another. The maximum also varies by insurers but rarely ever exceeds an amount of $25,000. If a policyholder has health insurance that already covers for rehabilitation and injury costs related to car accidents, then such a person need only purchase the minimum PIP amount mandated by the state.
It should be noted that PIP is not a substitute or replacement for liability coverage which pays for physical injuries caused to others including pedestrians and is required by most states.
Personal Injury Protection is quite useful in case the person at fault doesn’t have an insurance policy of their own. Manatee Insurance provides cheap auto insurance policies in Bradenton, Florida to car owners and protects them from sinking into financial crisis in case of accidents. Contact us today for more information.