For anyone that has been injured in a car accident or inflicted injury on others, whether passengers, bystanders, or people in the other vehicle, you know it’s not only physically painful, but it’s also very costly. You don’t need another monthly bill on top of the mandatory health insurance and car insurance payments you make, however, for certain people Personal Injury Protection (PIP) Insurance can be a true financial lifesaver in the long run, and also give you peace of mind.
PIP is commonly known as “no fault” insurance because it covers medical expenses and other collateral costs caused by a car accident, despite which party was at fault. This will allow you to get the help and medical attention you need without having to stress about if your standard car insurance will cover those costs. Of course, policies will vary depending on the provider, as well as by state requirements – PIP is mandatory in 17 states – but generally, the costs that are covered for you and your passengers are:
• Medical bills
• Funeral expenses
• Services related to your injury (transportation to hospital visits, home maintenance that you’re not able to do, child care)
• Lost wages
The policy maximums and the time limits usually range from $1500.00 to $250,000.00, depending on the specifics of the injury, as well as the requirements of the state. Apparently, Michigan residents may receive the most expansive benefits from unlimited medical and rehabilitation coverage under the no-fault policy. If PIP is required in your state, you will have to make sure you have, at least minimum coverage.
States with mandatory PIP coverage:
• Maryland (option to waive)
• New Jersey
• New York
• North Dakota
• Washington (option to waive)
Compared with traditional insurance, PIP typically offers more coverage, but in turn, it can also cost more. Although it can be far less pricey than Liability Insurance, you should make sure to review your policy to ensure that you’re not paying for things that are already covered.
If you have fully comprehensive health insurance or car insurance, you may not need to supplement it with PIP. However, if you’re limited in coverage, it may make sense to have that additional safety net and make sure you’re not stuck with a pile of bills later. And, especially if you regularly drive with passengers in your car, you may consider paying more for a more extensive policy that will cover the medical costs for them, and possibly, also provides for non-family members.
PIP can provide that extra peace of mind in the case that someone, including yourself, gets injured in a car accident that you’re liable for. It can also reimburse or pay for costs that are incurred when hiring help for transportation or around the house due to your injury. If you don’t feel your car insurance or health insurance are adequate and are minimal, then you may want to consider supplementing it with PIP.