Should I Select My Health Insurer For Auto Personal Injury Protection?Posted on May 31, 2016
You have many important decisions to make when purchasing auto insurance. Among those decisions is one involving Personal Injury Protection (PIP) coverage. Some people have the option to designate their personal health insurance provider as the primary source for payment of medical expenses in the event they are injured as the result of an auto accident. This means that the auto insurance PIP coverage would be the secondary payer.
According to the Department of Banking and Insurance for the State of New Jersey, most drivers in the state purchase $250,000 worth of PIP coverage, which is higher than is common for drivers in other states.
Before deciding to make major changes to your insurance designations, it’s a good idea to keep these things in mind.
Why Would this be an Attractive Option?
For many people it comes down to saving money. Many New Jersey residents receive health care coverage from their employers for discounted rates. In these instances, people pay a standard amount for health insurance coverage. Auto insurance costs, though, can be reduced by electing to use health insurance as your primary insurer in the event of an auto accident.
Does Your Health Insurance Cover Auto Accident Injuries?
You do not want to wait until you are in need of medical care after an accident to discover that your insurance coverage doesn’t extend to auto accidents and you are inadequately covered.
What Happens if You Lose Your Health Insurance Coverage?
Changing jobs or losing a job can result in you no longer having health insurance coverage. In this event your PIP coverage from your auto insurance policy will provide for that medical care. The downside is that you will have to pay a considerably higher deductible.
What if Your Health Insurance is Medicare or Medicaid?
These insurers cannot be identified as primary health insurers for accidents. They can, though, be identified as secondary insurers that will kick in and pay for medical expenses once your PIP coverage limits have been exhausted.
How Do Co-Payments and Deductibles Work in this Situation?
New Jersey drivers who designate their health insurance provider as their primary provider for coverage after an accident will follow their health plan’s requirements for deductibles and copayments. The secondary auto insurer will only pay for medical expenses that are necessary but excluded by your health insurance.
How Do You Select Your Health Care Insurance as Your Primary Insurer?
There is a coverage selection form available when you apply for insurance or renew your existing policy. Select the option that allow health insurance for Personal Injury Protection (or PIP). Then fill out the required information about your health insurance policy.
Before you take any action to change your auto policy to designate a health insurance provider, take a little time to determine whether or not you truly believe this will provide you the best possible standard of care if you are in an accident. You ultimately want to designate the primary provider that will offer the higher standard of coverage.