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During car accidents, injuries might occur that require immediate medical attention. Auto insurance policies act as a safety net to ensure financial assistance to the parties involved. They are indispensable in offering comprehensive cost coverage. One of the crucial components of a vehicle coverage portfolio is personal injury protection or PIP. Personal injury protection is designed to provide prompt security for medical expenses and lost wages arising from sustained injuries in road accidents. This blog explores what PIP is and why it is significant for drivers.
What is Personal Injury Protection?
Personal injury protection, also called no-fault insurance, pays for medical bills, rehabilitation expenses, or lost wages for you, and your passengers. In New York, a no-fault state, PIP coverage is mandatory and it covers medical costs, economic losses, and death benefits. The amount you opt to buy is the maximum you're entitled to recover with a PIP claim. However, it is important to note you need a minimum of $50,000 in PIP coverage to meet the mandatory requirements in NY.
Regardless of who caused the accident, this coverage offers you extensive financial support even if you are found at fault for the car crash. Requirements for PIP vary from state to state and are primarily required in states with no-fault laws.
What PIP Covers Expenses for:
Doctor's visit
Hospitalization
Ongoing health care
Missed wages, if you are unable to work
Funeral costs and other death benefits
Essential services like childcare or housecleaning
What PIP does not Cover:
Bodily injuries of driver and passengers of other's vehicle.
Damage to property or auto damage.
Any injuries in a collision if you are committing a crime.
If you are driving for work, PIP won't cover your injuries.
PIP & Health Insurance
PIP has a per-person maximum coverage limit. Meaning the insurance is restricted to a certain amount for each person injured in the accident. Health insurance pays for further expenses if your medical treatment costs transcend the policy limits.
However, personal injury protection can supplement the coverage benefits you can't acquire from health insurance alone. For example, it offers coverage for funeral or burial costs and low-income survivor costs.
If you belong to one of the 16 states where PIP is mandated, like NY, you are required to file a claim for coverage before you turn to health insurance. In cases where both PIP and health insurance coverage apply, drivers may coordinate both to escalate benefits and minimize out-of-pocket expenses.
For example, New Jersey has provisions so your PIP insurance can work in conjunction with your healthcare policies. In such scenarios, your bodily injuries are covered by health insurance, and PIP compensates your economic losses while you are in the hospital.
Why You Want More Than the Minimum
By increasing your PIP coverage, you prepare yourself for unexpected costs associated with possible rehabilitation, home modifications, transportation, and other related expenses. Personal injury protection offers invaluable financial protection and peace of mind over the road. Whether mandated by state law or optional, having PIP coverage is significant to meet costs for injuries to drivers and passengers alike.
At Quick Insurance we can help answer any questions you have regarding PIP coverage and assist you with updating or starting a new policy. Give us a call today at 845-497-1119 or visit our website at www.cquickinsurance.com to get a quote.
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