What is PIP insurance? | Rosenthal, Levy, Simon & Sosa

What is PIP insurance?

PIP insurance, also known as personal injury protection insurance, is a kind of no-fault insurance. This is added on to an automobile insurance plan as a way of covering health care costs that are associated with a collision.

Personal injury protection covers the medical expenses of those who were hurt in the collision whether they were policy holders or not. There are different limits that people can buy for their policies, too.

Will PIP insurance cover all of the medical expenses from a crash?

While it would be nice for PIP insurance to cover all of the expenses, that won’t necessarily be the case. PIP insurance covers up to the limit chosen for the policy. Then, other kinds of insurance, like personal health insurance, may kick in to cover other expenses related to an injury.

PIP policies have per-person maximums, so even if the coverage itself is set at $100,000 per crash, it may only be $25,000 per person, for example. This is why drivers should be cautious and buy a plan that has plenty of financial coverage. Medical bills add up quickly, and even $100,000 or $200,000 of coverage may be spent quickly among multiple injured parties.

Where is PIP insurance used?

PIP insurance is primarily used in no-fault states. In these states, this insurance covers the policyholder regardless of who caused the collision. Policyholders can also collect this coverage even if the other driver didn’t have PIP insurance coverage or auto insurance at all.

What will PIP insurance cover?

PIP insurance covers:

  • Medical payments
  • Child care
  • Funeral expenses
  • Lost income

Minimum coverage limits are set by the states. Usually, maximums are no more than $25,000, but there are some policies that go higher than that. It’s worth shopping around to find a policy that provides enough coverage for you to feel comfortable when you drive.

PIP may be required, but even if it’s not, you should still consider purchasing it. It offers additional coverage, which you may need if you’re hit by another driver or cause an accident yourself. More is better with insurance when it comes to a personal injury claim.

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