What Is Personal Injury Protection? Everything Policyholders Need To Know
No-fault insurance or Personal Injury Protection (PIP) is part of a vehicle insurance plan covering the healthcare expenses incurred in case of an accident. It covers the medical costs for the passengers and policyholders. It also applies to passengers without health insurance.
Sometimes, health insurance covers additional expenses if the essential medical care expenses exceed the auto insurance policy’s coverage limits.
However, the policy only offers a specific amount per person. So, every individual gets a limited amount if several people suffer an accident.
No-fault states have personal injury protection insurance, and the requirements vary from one state to another. These states have an advantage. A person’s policy pays for their medical costs if they injure themselves in a vehicle accident, irrespective of who was at fault.
So, anybody with PIP car insurance can enjoy this perk even if the other driver has no insurance.
It usually offers payments for accident-related funeral expenses, child care, and lost income, apart from making medical care affordable. Some no-fault states provide medical payment coverage but do not cover the other costs due to low limits.
You Can Also Check Out: Automobile Insurance Information Guide
Is Personal Injury Protection Required?
Many people ask, do I need personal injury protection? How much should I get from the claim?
Yes, you must have PIP coverage if you live in a state that mandates it. If your health insurance covers injuries and rehabilitation resulting from an automobile accident, you may need to purchase a minimal amount of personal injury protection coverage.
If PIP coverage is optional in your region, review your health insurance to see how it covers expenses connected to car accidents and also your deductible and out-of-pocket maximums to help you decide.
What Does Personal Injury Protection Cover?
You can consult with your personal injury lawyer to understand the things your PIP covers. However, here is a brief look into these factors.
1. Medical Expenses: Your PIP auto insurance may cover your health insurance deductible apart from the medical bills for you and your passengers.
2. Survivor’s Loss: Your surviving dependents can get your lost income through PIP if you pass away in a car accident.
3. Funeral Expenses: PIP covers the expenses of cremation, burial, or funeral following a vehicle accident.
4. Work Loss: PIP coverage can help if you injured yourself in an accident that resulted in lost wages due to loss of work. It also applies to a self-employed individual who hires temporary workers for various work.
5. Essential Services: Your protection plan can pay for the services you would perform without injuries. It includes housecleaning and childcare.
Personal Injury Protection VS Bodily Injury
Most people confuse personal and bodily injury to be the same. However, they are different.
Personal injury is any injury you sustain during an accident, such as emotional, mental, or physical. On the other hand, bodily injury means only the physical injury your body suffers. And so, the coverage differs.
Personal injury protection coverage includes payment for injury-related rehabilitation and medical expenses, income loss, and burial and funeral expenses. Bodily injury liability only covers the costs for physical injuries.
If you or your loved one experiences an automobile accident, slipping or tripping, or any other accident that causes injuries, you must realize how personal injury and bodily injury differ. It will help you and your lawyer calculate the economic and non-economic damages and pursue financial compensation.
Which States are No-Fault Car Insurance Zones?
It depends on what you perceive as no-fault states. Ten states adhere to the no-fault car insurance policy where accident victims must first seek their own car insurance coverage. These states are:
- Utah
- North Dakota
- New York
- Minnesota
- Michigan
- Massachusetts
- Kentucky
- Kansan
- Hawaii
- Florida
Additionally, three states adhere to a hybrid or choice no-fault system. It means that a person chooses to be insured under a conventional liability-based or no-fault scheme when buying a car. These states are:
- Pennsylvania
- New Jersey
- District of Columbia
A few jurisdictions, such as Oregon and Delaware demand no-fault coverage as an add-on to your automobile insurance policy.
However, in these mandatory add-on states, your options for holding another motorist liable for your losses are often unrestricted after a crash.
Takeaway
If you have injured yourself in a car accident in a no-fault state and believe your claim qualifies you to go outside the no-fault system, talk to a professional personal injury attorney about your alternatives. Find out when you should hire a car accident lawyer. Using the tools on this page, you can also find a car accident lawyer in your area.
Useful Related Article: How Much Will You Get From Car Accident Settlement?
