How Personal Injury Projection (PIP) Insurance Works
Not only are car accidents unpredictable, but so are the expenses that can spiral forth afterward. That’s why personal injury protection, or PIP insurance, is so important for many drivers to have on their car insurance policy.
While auto insurance coverages such as liability and collision insurance are important, they won’t be able to help you in the event that you miss your work paycheck or incur other miscellaneous expenses because of a car accident. This article will help teach you how PIP coverage can protect you and your family.
How PIP Insurance Works
While other types of car insurance may or may not kick in depending on which drivers are at fault, PIP auto insurance coverage is different. Personal injury protection insurance is considered no-fault coverage because it covers impacted policyholders, drivers, and passengers regardless of whether another driver or they were deemed to be at fault for an accident.
What Does Personal Injury Protection Cover?
If you are unable to work because of injuries caused by a car accident, in some cases, you’re entitled to cover up to 80 percent of lost wages through PIP. Other potential expenses covered by PIP insurance include:
- Medical bills and hospital expenses
- Rehab costs
- Funeral expenses
- Household cleaning services
Depending on the severity of injuries and length of recovery, PIP may represent a significant financial stake. It’s important to make a distinction between PIP and medical payments coverage, commonly known as med pay. While PIP covers more expenses, it also carries a deductible, where med pay does not. Drivers choose one of these coverages, not both.
States with Required PIP Insurance
There is an increasing amount of states where PIP coverage or med-pay is mandatory, including:
- New Jersey
- New York
- North Dakota
As PIP is a no-fault product, these are all no-fault states. You’ll want to check and see what the minimum coverage level is for your state. In Arkansas, Maryland, Washington, and Texas, car insurance companies are required to offer PIP insurance but policyholders can avoid this coverage by signing a waiver.
PIP insurance is like many auto insurance products; you don’t fully appreciate it until you need it. And hopefully, you never need it. But if you’re involved in an accident that causes more severe injuries, PIP can help you and others focus on recovery and not stress about finances. Compare rates through local auto insurance companies below with PIP coverage included. You just might find a cheaper policy with greater protection!