Personal injury protection. Personal insurance protection. Personal injury insurance. PIP. It’s all the same. Basically, it’s a component of auto insurance that covers medical expenses and lost wages after a vehicle accident.
Unlike some other types of insurance, PIP pays out claims regardless of who’s at fault in the accident. Because of this, it’s sometimes called “no-fault” coverage.
PIP can provide you with a whole heap of benefits, but not many people know what it’s all about. In this guide, you’re going to find out what makes PIP such a worthwhile investment.
What You Need to Know
Imagine this: Someone has been involved in a car accident and, after seeking medical attention and losing a month’s wages, makes a claim on their auto insurance. The insurance company says they are happy to cover the cost of the damaged car, but they won’t pay for the medical expenses or lost wages associated with the accident. What gives?
Unfortunately, this is a problem that faces many Americans. Often, drivers will find out they don’t have enough insurance to cover medical expenses and lost wages after they have had an accident. At that point, it’s just too late.
There are more than 6 million automobile accidents in the United States every year. Although the majority of these are minor, there are some accidents that require expensive medical treatment. In other cases, someone might not be able to work for an amount of time because of injuries associated with the accident.
Healthcare can be extremely expensive, and many Americans find that their medical plans just don’t cover all the treatment they need. The fact that many drivers might need to take time off work after an accident adds to their financial burden.
How Does PIP Work?
PIP is pretty simple. If you have this kind of insurance, and you’re involved in an accident, you can make a claim regardless of whether the accident was your fault. This is what you can claim for:
- Medical expenses associated with your accident.
- Lost wages if you need time off work because of your accident.
- Transportation to medical appointments after your accident.
- The medication you need as a result of your accident.
- Lawn repair if the car accident happened outside of your property.
Are You Eligible for PIP?
Whether you are eligible for PIP insurance all depends on where you live. Currently, PIP is mandatory in 13 states:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
PIP is also mandatory in the District of Columbia.
There are other states where you can obtain PIP insurance. However, this is optional and not mandatory. These states are:
- Alaska
- Alabama
- Arkansas
- Arizona
- California
- Colorado
- Connecticut
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Louisiana
- Maine
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Mexico
- Nevada
- North Carolina
- Ohio
- Oklahoma
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Vermont
- Washington
- Wisconsin
- West Virginia
- Wyoming
If you live in any of these states, you might think that PIP is an unnecessary expense, but it could provide you with a long-term return on your investment. With PIP, you can cover the costs of expensive medical treatment and lost earnings, which could otherwise set you back thousands of dollars.
There are also differences in what you can claim for on your PIP insurance policy depending on where you live. Some medical treatments, for example, are only included in certain states.
Why is PIP Mandatory in Your State?
PIP insurance might increase the cost of your premiums, but there’s a reason why. Many states have made PIP mandatory not only to provide you with a financial safeguard in the event of an accident but also to reduce the number of lawsuits filed in the courts against at-fault drivers. Remember, claimants of PIP can get financial relief no matter who was at fault in the accident.
How to File a PIP Claim
Filing a PIP claim is simple and works in the same way as your regular auto insurance. You will need to contact your insurer (usually by phone or online) and make a claim. Your insurer should release funds to help pay for any medical expenses immediately. For on-going claims that involve loss of earnings, your insurer might take longer to review your file.
What If the Other Person Caused the Accident?
You can still claim compensation from a driver who caused an injury on top of your PIP. Personal injury litigation helps people who have suffered an injury that wasn’t their fault.
If you have been involved in an accident and would like to receive compensation, a legal specialist like Bennett Injury Law can help you.
Takeaway
PIP is one of the most important insurance policies you can have because it provides you with a financial safeguard in the event of an automobile accident. Unlike other types of insurance, you can claim for medical expenses and loss of earnings regardless of who caused the accident.
Remember, PIP is mandatory in some states and optional in others. If you live in a state where it’s not mandatory, you could still benefit from this type of insurance.
Have you been involved in a car accident and want to seek legal compensation? Contact Bennett Injury Law now.
