Do you need personal injury protection when buying car insurance? Personal injury protection (PIP) covers your medical bills and lost wages after you’ve been injured in an accident. When choosing car insurance, many people wonder if they need PIP coverage to protect themselves and their family against the costs of a serious injury or accident. Consider these five points before deciding whether PIP coverage is right for you.
Personal Injury Protection (PIP)
This coverage is required by law in most states, and is often included in your car insurance for free. PIP provides a set amount of money for medical expenses, lost wages, and other costs incurred when you’re injured in an accident that wasn’t your fault.
This means you don’t have to worry about shelling out thousands of dollars of your own money to cover these costs (which can happen if you aren’t insured or don’t have enough coverage). There are limits on how much each claim will pay out though – usually between $10,000 and $25,000 per person. If your claims add up over time past those limits then you’ll be responsible for paying any remaining costs yourself.
The good news is that with PIP, you won’t need to worry about fighting with an insurance company over your bills. It’s all covered! But there are some downsides too. For example, it only covers injuries sustained in an auto accident – not things like broken bones from slipping on ice or anything else that isn’t caused by a crash. Additionally, while it covers injuries sustained by passengers and pedestrians as well as drivers, it doesn’t cover injuries sustained while driving someone else’s vehicle. So make sure you know what your policy covers before buying it!
PIP can replace lost wages if you’re injured in an accident
While most states don’t require car insurance to offer personal injury protection (PIP), it is still often included with auto coverage. PIP covers any medical costs associated with your injury from an accident, even if you’re deemed partially responsible for that crash. This can include co-pays for doctor visits, prescriptions, and other injuries.
If you have PIP and are injured in a car accident, you will not have to pay for these expenses out of pocket. However, PIP does not cover all medical treatment or rehabilitation costs. For example, if you need physical therapy following your accident, PIP may only cover a portion of those bills. In addition, PIP won’t pay for lost wages—if you miss work because of your injuries—or pain and suffering damages. That means that while having PIP can be helpful after an accident, it isn’t going to fully replace everything you lose when hurt in a crash.
If you don’t have PIP, your health insurance may help pay your medical bills
If you’re involved in an accident, your health insurance may pay for any medical bills and other expenses that result from it. But if you don’t have health insurance, you may be on your own—or you could end up with a bill for hundreds of thousands of dollars (or more). With PIP coverage, a portion of your car insurance premium covers PIP.
If you’re injured in an accident and meet certain conditions, PIP covers your medical expenses up to $3,000 per person (up to $6,000 total) and up to $90/day for 14 days. It also provides wage replacement as well as coverage for non-medical services like housekeeping or child care while recovering from injuries. Make sure you read your policy carefully so you know what PIP does and doesn’t cover. And make sure to check with your state department of insurance to see if they require auto insurers to offer PIP coverage.
Even if they do, many states allow insurers to exclude some kinds of benefits or coverages under their policies. For example, many states allow insurers not to provide daily payments after two weeks—and some states don’t even require insurers to provide those two weeks’ worth of benefits at all!
What to do if you are hit by an uninsured motorist
Before purchasing car insurance, you should check to see if your state requires you to purchase PIP. It will usually be offered as a basic package with your liability coverage. In California, for example, where I live, it is required by law.
If your state does not require it then personal injury protection can be purchased as an add-on to liability coverage and most of my clients choose to do so. This gives them more protection if they are involved in an accident and cannot recover from their medical bills through auto or health insurance alone.
In addition PIP offers immediate access to a network of doctors and physical therapists without having to get approval from your regular health care provider first. This means that when you have been injured in an accident and need treatment right away you don’t have to wait while your doctor decides whether or not he wants to treat you. If he doesn’t want to treat you (or refuses) because he thinks that his work may not be covered under your policy then PIP ensures that another doctor will take over immediately.
This way you can start getting treated right away. Another reason why people choose to buy PIP is because it covers things like housekeeping services, child care expenses and other costs associated with being unable to work after an accident. Without PIP these costs would not be covered and could easily run into thousands of dollars.
The difference between uninsured motorist coverage and personal injury protection: There are two types of car insurance policies which protect drivers against injuries caused by other drivers who do not carry any type of insurance at all: uninsured motorist coverage (UM) and personal injury protection (PIP). UM pays for your injuries caused by other drivers who were either driving without insurance or whose limits were too low to cover your injuries.