What’s Private Harm Safety (PIP) for Motor Insurance? • Benzinga – Benzinga
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Do you know what types of insurance your car insurance includes? If you live in a state that requires Personal Injury Insurance (PIP), you may have advanced medical benefits that you didn't even know about. But where is PIP insurance needed, what does it cover and how much coverage do you need? If this is optional in your state, should you invest in PIP insurance? Read on to learn more about this often misunderstood type of auto insurance.
What is personal injury protection?
Personal Injury Protection (sometimes called “flawless insurance”) is a type of coverage that covers you for your own medical bills and those of your passengers if you are injured in an accident. Your personal protection often extends to injuries sustained if you are involved in a collision as a passenger in someone else's car.
Note that personal protection is not the same as the personal liability insurance that you must take out as part of your minimum state insurance. Personal liability insurance replaces anyone you injure in an accident. This coverage does not compensate you for your own injuries if you are involved in a collision. However, if you have personal injury coverage, you can get assistance that will cover your own bills.
Personal Injury Protection is sometimes referred to as “flawless insurance” because it helps you cover your injuries without identifying who was responsible for the accident that caused the injury. As a condition of claiming personal injury compensation from your insurance company, you will lose the right to sue the other driver in small claims court for the cost of your medical bills if that coverage is required. No-fault insurance was originally introduced to reduce litigation delays caused by the time-consuming and expensive process of finding guilt after a car accident.
- Personal Injury Protection (PIP) insurance is a type of health insurance that helps cover the cost of your own medical bills after an accident.
- It can also cover things like lost wages and funeral expenses.
- PIP insurance is not the same as personal insurance, which is required to drive in almost every state. Personal liability insurance pays for other drivers who injure you on the road, while PIP insurance covers you for your bills.
- PIP insurance is required by law in 16 states and optional in 5 states and Washington DC.
- In states where PIP insurance is not available, you may want to get health insurance that is similar to PIP insurance.
Is PIP coverage required by law?
Personal protection is required to legally remain on the road in 16 states and coverage is optional in others. In some states, you cannot purchase a personal injury policy. If you need PIP coverage, the minimum coverage you need to maintain varies by state. For example, Hawaii drivers must bring at least $ 10,000 of PIP insurance, while New York drivers must pay $ 50,000 in insurance coverage plus $ 2,000 death benefit.
Personal Injury Protection vs. Medical Payments
In some states, you may have the option to add health insurance (sometimes called "MedPay") to your auto insurance policy. Like PIP insurance, medical payments help cover post-accident medical-related expenses, including:
- Deductibles and co-payments for health insurance
- Doctor or hospital visits
- Ambulance and emergency doctor fees
- Ongoing professional care needs (such as home nursing or physiotherapy)
The difference between PIP insurance and health insurance is the location. Health coverage is not available in states where PIP coverage is required or optional. While PIP insurance may be required in some states, medical payment coverage is always optional. In simpler terms, health insurance has all of the medical benefits that you can find in PIP policies that don't allow you to buy a personal protection plan.
What does the PIP insurance cover?
Personal protection can include a variety of post-accident medical benefits, including the following.
- Medical expenses: PIP coverage can help cover the cost of medical and surgical treatments required after an accident, dental and optometric treatments, ambulance and nursing services, prescription drugs and prostheses. PIP insurance can also help you cover the costs of ongoing professional medical care – for example, physiotherapy to restore your ability to walk.
- Loss of wages: In some cases, your personal protection insurance can help you cover the cost of lost wages if you are unable to work due to accidental injuries.
- Limited housework: If your Injuries restrict your ability to work after an accident, your personal protection insurance cover can cover the costs of a personal care service that supports you with household chores such as preparing meals or washing clothes.
- Funeral expenses: If you or one of your passengers dies as a result of a serious accident, your PIP insurance can help cover funeral expenses.
Note that PIP insurance will only reimburse you for medical expenses that you incur as a direct result of your collision. It does not replace the usual health insurance coverage. Unlike health insurance, your PIP insurer can limit the total amount of medical services you can get. For example, if you take out a PIP insurance policy with a limit of $ 5,000, your insurance provider will not reimburse you for accident costs over $ 5,000 – even if they are related to your accident.
Do you need PIP coverage if you have health insurance?
If you live in any of the 16 states that require PIP insurance, you must get it as part of your auto insurance, regardless of whether you have health insurance or not. Your state may also have regulations that require you to file a claim with your PIP insurance provider before contacting your health insurance policy.
If you live in a state that requires personal injury coverage and you have health coverage, you may still want to invest in PIP insurance because it offers protection beyond your health insurance. For example, the personal injury protection provided by your car insurance policy can help cover lost wages and funeral expenses.
How do you get personal protection?
Before you can purchase a personal injury policy, you need to determine whether or not this coverage is available in your state. PIP insurance is required in 16 states, and 5 states and Washington D.C. optional. That means you can't get personal injury insurance if you live in any of the other 29 states.
If you live in a state that requires PIP insurance and you currently have auto insurance, you likely already have that protection if you have the minimum state insurance required to legally travel around. If you live in a state where PIP insurance is optional, you should speak to a representative from your insurance company to discuss coverage options and prices.
Check out this Benzinga resource to learn more about the laws in your state: At Least, Personal Automobile Liability: A State's Guide.
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Are you driving without a minimum state insurance? Then you risk a hefty fine, confiscation of your vehicle or even loss of your driver's license or arrest if you've been caught driving without insurance in the past.
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frequently asked Questions
How much PIP coverage do I need?
How much PIP coverage do I need?
The total amount of PIP coverage you will need depends on the minimum requirements for your state. In some states, you might only need $ 5,000 worth of coverage; in others, you might need more than $ 50,000 worth of coverage. If necessary, speak to a local insurance agent to find out more about your state's minimum amounts.
Should PIP be primary or secondary?
Should PIP be primary or secondary?
Many states have laws that require you to use your PIP insurance as primary and your health insurance as secondary in the event of an accident.
Unless you live in a state that requires PIPs to be a primary insurance, you may still want to set your PIP coverage as your primary as many health insurers have restrictions on the ongoing care you may need after an accident (e.g. therapy) .