Nobody ever wants to be involved in a car accident, but they’re an all-too-common fact of life.
When they do happen people simply want to get on with their lives as quickly as possible, putting the shock of it behind them.
But determining who is to blame after a car accident can and does cause huge delays for insurance companies.
That’s because very few people will hold their hands up and admit fault in these situations, for obvious reasons.
Personal Injury Protection (PIP) provides what is referred to as “no fault” cover. This means that insurance companies can pay out on medical and other expenses without having to invest time in assessing who is at fault for the accident itself.
Do I Need Personal Injury Protection?
The short answer to this is “Yes”, especially in certain states.
So, the first thing to be aware of is that Personal Injury Protection is mandatory in the following states: The District of Columbia, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
In these states you must file your claim under your PIP protection before using your health insurance, even if you have excellent health coverage.
Other good reasons for having PIP is if you carry passengers in your car on a regular basis, or if you have a sub-par health insurance coverage. It only takes one accident to result in you having to compensate several injured parties for their medical expenses.
Personal Injury Protection offers a wide range of benefits, so is worth considering even if you don’t live in a state where it’s mandatory.
What Does Personal Injury Protection Cover?
PIP covers the medical and other expenses of both you and any passengers in your car should you be involved in a car accident. These costs are covered regardless of who was at fault for the accident.
The actual amount of financial coverage provided by PIP varies from state to state. But as a general rule of thumb, Personal Injury Protection will cover 80% of your medical bills and 60% of lost income, with an upper limit of $10,000 on lost wages.
Your existing health insurance might also work in conjunction with Personal Injury Protection, so that your physical injuries are covered by your health plan, but any loss of income is covered under your PIP.
PIP also covers you if you’re a passenger in another person’s car, or even if you’re a cyclist or pedestrian struck by a car.
Other benefits of Personal Injury Protection include that it not only covers medical expenses, but also rehabilitation treatment costs, prescriptions, house cleaning costs, childcare expenses, and even funeral costs.
Not all types of medical treatment are covered in every state – some states don’t provide cover for alternative forms of medicine, for example.
How Is Personal Injury Protection Different to MedPay?
Medical Payments Insurance will cover all medical costs associated with your accident, but provides no cover for loss of income, or any other costs incurred as a result of your accident.
You can have PIP and MedPay cover at the same time, but if you’re living in a “no fault” state then there’s a good chance you don’t need MedPay at all.
How Do You File a Personal Injury Protection Claim?
PIP is basically an extension of your car insurance, so you submit a claim just like you would with any other type of insurance policy.
Just bear in mind that some PIP policies have a “deadline”, so make sure to file your claim immediately after your accident.
Summary
The beauty of Personal Injury Protection is that it provides for both your and your passenger’s immediate medical expenses because insurance companies don’t have to assess who is at fault.
You also don’t need to worry about lost income in the aftermath of your accident, because PIP also covers that.