Personal Injury Protection Plan Author:    Posted under: Auto InsuranceAuto Insurance Types

Personal Injury Protection or PIP is a part of a car insurance that pays for medical expenses, damage to property or lost wages regardless who was at fault in the accident. This type of coverage is not yet available in all states but in some this coverage is mandatory for all motorists or car owners. The law covering PIP varies from state to state in terms of limitation of what is to be covered and what type of treatments are reasonable.

PIP is also known as “no-fault” coverage. As the name “no-fault” implies, this coverage protects you from legal liability as well. In some cases, PIP also covers funeral expenses too. The coverage extends to the others (even non-family members) in the vehicle during the time of the accident, and pedestrians who might have been struck by the vehicle. Basically, PIP covers the policyholder, household residents related by blood, marriage or legal adoption, step or foster children.

Depending on the coverage of the policyholder, PIP’s minimum coverage benefits are:

  • $10,000 reasonable medical expenses for every injured individual in the accident. Available for up to three years from the date of the accident.
  • $200 per week for loss of wages. This is limited for one year only after the individual has been disabled for 14 consecutive days.
  • In case of death, $2,000 funeral expenses can be claimed.
  • $5,000 loss of service. This payable to others for the work the individual cannot do due to the accident.

These are just minimum benefits. You can easily buy more coverage – just consult with your insurance agent.

In some states, there are different types of Personal Injury Protection Plans. These are as follows:

  • Full Primary PIP- as the name implies, this acts as primary coverage for you and your passengers. Also covers, funeral expenses, death benefits and loss of wages.
  • Full PIP Health Primary- this is applicable if another health insurance provider acts as the primary coverage for injuries sustained during accident. It also covers the funeral expenses, death benefits and loss of wages. But you must ascertain that your primary health insurance provider will cover injuries related to accidents. It is best to consult with your health insurance provider for things such as this.
  • Medical only PIP Primary- only covers the injuries sustained by you and your passengers during the accident.
  • Medical only Health Primary- this should be purchased when another health insurance provider acts as the primary coverage for injuries sustained by you and your passengers during the accident.

The cost of Personal Injury Protection plan differs from company to company. Some insurance providers will even ask you to cover all the vehicles listed in your policy. The more vehicles in your policy, the more you need to pay for premium coverage.

If in case your health insurance policy covers injuries suffered from accidents, make sure of the extent of the coverage. Some policies can be vague about this. If you think that you are not covered enough, you can always get an additional PIP plan.


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