Do you want to know everything about PIP Insurance, and what it covers? Then you are at the right place to have more understanding.
Personal Injury Protection (PIP) insurance covers your medical bills and lost wages when you or your passengers are injured in a car accident.
PIP is optional in most states. However, 16 states require you to carry a minimum amount of PIP coverage.
Moreover, PIP insurance can overlap with your health or MedPay insurance but there are times when multiple policies are recommended.
In this article, you will learn what PIP insurance covers and what you need to know.
READ MORE: Personal Injury Protection: What it is, How it Works
What Is Personal Injury Protection?
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Personal injury protection, also known as “no-fault insurance,” pays the medical bills and rehabilitative costs for you and your passengers after you’re injured in a car accident.
Moreover, the PIP extends to instances when you are a passenger in someone else’s car or if you’re hit by the car while a pedestrian or cyclist.
Also, PIP insurance is diverse from bodily injury liability insurance in that, while PIP coverage pays for your expenses, liability insurance pays for the medical expenses of drivers and passengers in other cars when you are at fault for an accident.
Moreover, it includes some of the same coverage as your health insurance or Medical Payments policy. However, PIP coverage is specially written for car-related injuries that are sometimes excluded from health insurance policies.
PIP insurance covers several additional expenses not covered by MedPay insurance.
What Does Personal Injury Protection Cover?
PIP insurance covers necessary medical procedures as well as reasonable expenses related to rehabilitation as you recover from an accident.
The types of expenses covered vary by state and which include:
- Operations
- Hospitalization
- Ongoing professional care
- Lost wages, if you’re unable to work
- Funeral expenses and accidental death benefits
- Home care expenses like childcare or house cleaning, if you are unable to fulfil these duties yourself.
Do You Need PIP If You Have Health Insurance
If you live in one of the 16 States where PIP coverage is required, you must file a claim under that policy before you turn to your health insurance.
Also, even if isn’t required in your state, PIP insurance gives several benefits that you won’t get from a health insurance policy like coverage for lost wages and funeral costs.
Moreover, in few states like New Jersey and Michigan, have provisions so that your PIP coverage will work in conjunction with your health insurance policy.
For instance, if you’re injured in a car accident in Michigan, your health insurance policy can cover your physical injuries and your health insurance policy can cover your physical injuries and your PIP would cover additional economic losses like wages you lost while you were in the hospital.
READ MORE: What Is The Best Car Insurance For Single Parents?
How Do You File a PIP Claim?
You can submit a claim like any other kind of insurance, either online or through the phone. Also, PIP will help you pay for medical expenses necessary immediately after the accident.
For the non-urgent claims, you’ll ne required to review or pre-approve your treatment plan with a medical expert of your insurer’s choosing or an outsourced medical claims processor.
The auto insurance provider can approve partial reimbursements or even have you examined by the medical provider of their choice. Moreover, the amount your policy covers can vary depending on the plan and your state.
For instance, in Florida, PIP coverage will only pay for 80% of your medical costs.
This is critical to follow your auto insurance company’s process and timeline.
In New Jersey, for example, any medical care or treatment within the first ten days after the accident must be approved and certified by your insurer.
If you fail to provide the required “Attending Provider Treatment Plan” and is documentation can result in a co-payment penalty of 50% irrespective of whether the procedure or diagnostic test was medically necessary or reasonably required.
However, in New York, all medical bills should be submitted within 45 days of treatment to be considered for payment.
Otherwise, a written explanation must be provided. Ask your insurance agent for their PIP claim process requirements and keep a copy on hand in case you get injured.
How Does PIP Work With Other Types of Car Insurance?
If you are injured by another driver and have personal injury protection as out of your car insurance policy, you would typically exhaust your PIP coverage first before turning to other options.
Also, when your medical costs exceed your policy’s limits, you can then file a claim under the other driver’s liability insurance policy.
However, when you are significantly and permanently injured, or if your medical bills exceed your state’s tort threshold. Also, you can bypass your PIP coverage and file a lawsuit against the other driver.
Is PIP The Same As Bodily Injury?
Personal injury protection (PIP) is designed to cover medical costs related to the accident, no matter who is at fault.
Moreover, bodily injury liability coverage, on the other hand, gives coverage for medical expenses related to someone who is injured when you are at fault.
Do I Need Personal Injury Protection (PIP)?
Personal injury protection (PIP) insurance coverage includes payment for injury-related medical and rehabilitation expenses, loss of income and funeral and burial expenses.
Furthermore, bodily injury liability coverage includes payment for any physical injuries that happen in the accident you cause.
What States Require Personal Injury Protection (PIP)?
PIP auto insurance is required in Florida, Hawaii, Kansas, Delaware, Kentucky, Maryland, Michigan, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Utah, Oregon, Pennsylvania, Utah and Puerto Rico.
READ MORE: What is Personal Injury Protection (PIP) and Do You Need It?
Conclusion
Personal Injury Protection insurance is a valuable addition to your auto insurance policy, to provide coverage beyond typical medical insurance in the event of a car accident.
