What is Personal Injury Protection Insurance?
Personal injury protection insurance or 'PIP' is a kind of coverage that helps you to pay for medical and other expenses related to a vehicle accident. It covers all the people listed in the policy no matter who caused the accident. Personal injury protection is required by law in some states.
The insured and members of his family which have been specified in the policy and are related by blood, marriage or adoption are covered by a personal injury protection policy. Step and foster children are also covered by PIP. All covered parties must live in the insured's household at the time of the accident.
Who else is covered by a personal injury protection policy? Passengers and pedestrians who were injured in the accident are also covered by a PIP and will receive benefits even if the accident was the insured's fault.
Personal injury protection is important since it will help you to pay for 'reasonable and necessary medical expenses' that may occur due to a car accident. These injuries are generally covered for up to three years from the date the accident happened.
A personal injury protection policy will also provide for replacement of income generally for a period of one year. You will be eligible for income replacement benefits once you have been disabled for two weeks. If you need coverage for a funeral it is available and if you can't work your employer may be compensated. Benefits do vary from state to state so check with your local insurer to make sure what is included in your PIP.
Personal injury protection premiums go hand in hand with medical costs. As the cost of medical care rises, so too do PIP premiums. If you have more than one car your PIP extends to these vehicles as well and you typically need to pay a premium for each car.
There are some expenses that personal injury protection insurance doesn't cover. You won't be covered if you are injured using farm equipment, recreational or off road vehicles, mopeds or motor cycles (but you can get PIP coverage on motorcycle policies). If your injuries were caused on purpose or during racing activities or when committing a crime you will also not be covered.
When do I need personal injury protection insurance? If your medical and disability coverage is adequate for other policies you probably won't benefit from PIP. If you have good health care benefits PIP may be an unnecessary expense. If you usually drive alone you may not need to added expense of PIP coverage.
