What is Personal Injury Protection (PIP) Coverage ? – Frequently Asked Questions about Personal Injury Protection (PIP) Coverage
Here are answers to frequently asked questions about personal injury protection (PIP) coverage.
Personal injury protection (PIP), commonly known as “no-fault insurance,” is a component of a vehicle insurance policy that pays for medical expenditures incurred as a result of a car accident. PIP pays for medical payments for both wounded policyholders and passengers, even if some are uninsured.
Yes, if you live in a state that requires PIP, you must have PIP coverage. The next question is how much you should pay. If your health insurance covers injuries and rehabilitation as a result of a car accident, you may only need to purchase the bare minimum of PIP mandated by your state.
Also, if PIP coverage is optional in your state, review your health insurance to see how it covers expenses connected to automobile accidents
In Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Puerto Rico, PIP auto insurance is mandatory. In Arkansas, Delaware, Maryland, Oregon, and Texas, it is a required add-on to motor insurance, whereas in New Hampshire, South Dakota, Virginia, Washington, Wisconsin, and Washington, D.C., it is an optional add-on.
A total of 22 states, one territory, and one federal city.
The governments of the various states in the United States of America determine minimum coverage criteria, which can vary. Insurance companies set maximums, which can vary but are normally no more than $25,000.
After an automobile accident, no-fault insurance does not cover expenditures or payments that are not related to personal injury.
Vehicle theft is not covered by no-fault or PIP insurance.
Damage to other people’s property is not covered by no-fault insurance or PIP insurance.
No-fault insurance/PIP insurance does not cover medical expenses that exceed your coverage limits.
Health insurance is a package plan that includes a variety of coverage options that you choose when you buy the policy. Outpatient treatment, drug prescription benefits, specialist visits, and/or consultation fees may all be covered. PIP, on the other hand, is a sort of coverage in an auto insurance policy.
Typically, health insurance does not cover lost wages. This means that if you are unable to work as a result of an accident and lose some of your income, your health insurance will not compensate you for your lost wages.
PIP, on the other hand, does cover lost wages. In the event of a car accident, a person protected by PIP will be reimbursed by the insurer for lost income as a result of the accident.
PIP may entitle you to more money on top of your existing benefits as well as a decrease in your council tax or road tax expenses, and travel discounts.
Before you can apply for this extra support, you’ll need your PIP award letter, sometimes called the PIP award notice.