What is PIP Coverage?Posted on Jan 17, 2019
PIP stands for personal injury protection and is an extension of your regular auto insurance. It covers medical costs and in some cases, lost wages. People often refer to it as “no-fault” coverage since it pays out claims regardless of who’s at fault for the accident.
What PIP Coverage Covers?
PIP provides you with vital protection from expensive post-accident medical costs. Because it’s an essential coverage, you’ll want to check with your work-loss coverage and health insurance plan, if you have them, to figure out the amount of PIP coverage you’ll need to add to your auto policy. For instance, you’ll want to check your health plan to see if it covers car accident expenses.
PIP coverage is only available in some states. While the specifics can significantly vary by state, it typically covers you, your passengers and drivers listed on your policy.
In the event of an injury due to an accident, PIP can cover:
- Medical costs: surgical and medical treatment, optometric and dental treatment, nursing and ambulance services, medical supplies, medication, and prosthetic devices.
- Lost wages: if you or your passengers can’t work because of injuries related to an accident, PIP may cover your lost wages.
- Funeral expenses: if injuries due to an accident resulting in death, PIP may help you pay for the funeral costs.
- Substitute services: if injuries due to an accident keep you from performing household duties, such as cleaning, PIP may help pay for substitute services such as a cleaning crew.
Benefits of PIP Coverage
After the initial shock of an automobile accident, among the most frustrating problems may be how long it takes the insurance company to:
- Determine blame
- Pay a claim
- File a lawsuit (if necessary)
The main benefit of PIP coverage (other than having your expenses paid) is there’s no need to figure out who’s at fault for the car accident.
PIP coverage isn’t a type of car insurance you’ll be able to find in all states. Most of the states offering PIP coverage are “no-fault” car insurance states. In these states, it’s necessary to obtain PIP coverage since it’s the only coverage you’ll receive for medical expenses.
However, in states where it matters whose fault, it is required liability insurance which coverages the medical expenses of the innocent party in the accident.
When you learn more about PIP coverage, the first thing you should do is find out if you live in a no-fault or fault state. If you are in a no-fault state, it likely means it’s legally mandatory you obtain some type of PIP.
If you live in New Jersey, it’s a no-fault state, and you should contact us here at Otterstedt Insurance Agency to discuss getting PIP or personal injury protection.