Personal Injury Protection

Auto insurance policies come with many different coverage options. Some of them are mandatory, whereas others are optional. Personal injury protection (PIP) is one such auto insurance coverage that is found to be a part of certain types of motor insurance policies. It has been observed that the terms and conditions of this coverage may sometimes vary from one state to another. In Florida, New York, Oregon, Massachusetts, Delaware, Hawaii, Kentucky, Pennsylvania, Utah, New Jersey, North Dakota, Kansas, Michigan and Minnesota, PIP coverage is mandatory. Let us take a look at the various aspects of personal injury protection coverage.

What is Personal Injury Protection?

As mentioned above, it is a type of coverage offered by certain types of vehicle insurance. This coverage is meant to assist the injured with medical expenses, incurred through vehicle accidents. While the cost incurred by the injured through conventional medical treatment is covered by most of these policies, some may even cover alternative medical treatment. In some cases, even the lost wages and other damages incurred by the insured, as a result of the accident, will be paid. Some of the auto insurance policies with personal injury protection coverage may also cover the funeral expenses and even take care of the pain and suffering compensation. Another classic feature of this type of coverage is the no-fault clause. In other words, the injured will get paid even though, the person who was driving the vehicle at the time of the accident was found to be at fault. One of the beneficial aspects of this coverage is that there will be no increase in the insurance premium, in case of a PIP accident claim.

Who are Covered Under PIP?

As per PIP, the driver of the vehicle involved in the accident, as well as the fellow passengers are covered, irrespective of the fault of the driver. Apart from the above said people, even those pedestrians, who are hit by the vehicle are covered in this type of accident insurance policy. However, there are certain exceptions to this coverage. Personal injury protection coverage does not cover mopeds, farm equipment, recreational and off-road vehicles, motorcycles, etc. You may apply for PIP coverage for motorcycles, but it can be very expensive. Even those intentional injuries caused by the insured person are not covered in PIP. If the insured person gets injured in a vehicle accident while participating in a racing activity, then also he will not be covered as per PIP. Vehicle accidents that happen while committing a felony is also not covered.

PIP vs Health Insurance

Do I need personal injury protection? This is one of the common doubts raised by people, before applying for a vehicle insurance. If you are having other health insurance policies, you have to go through their terms and conditions, so as to decide whether PIP is required or not. If the existing policy covers the medical expenses as well as lost wages, then PIP may not be needed. But, if you are a person who carries passengers regularly, then you may require PIP coverage. Again this does not apply to those with their family members as passengers and such members are already covered with health insurance. However, if the health insurance policies do not cover certain types of injuries caused by vehicle accidents, then it is better to opt for a personal injury protection plan. It may also happen that if you apply for this coverage, you may be required to cover all your vehicles in the policy and this may result in a hefty premium.

This was a basic idea about personal injury protection coverage. The costs associated with this type of insurance may vary from one type to another. It has been observed that almost 80% of the costs incurred by the insured person as well as the passengers in the vehicle will be paid as per the personal injury protection auto insurance. Again, this may vary with different insurance policies. So, it is always better to understand the terms and conditions, beforehand. In short, PIP is beneficial in many ways, but if you want to apply for this insurance policy, go through the terms and conditions. You must also compare your health insurance policies with PIP.


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