Another Layer of Coverage – Personal Injury Protection
Insurance has become very expensive, especially with the lost wages many people are suffering through in tight economic times. It represents a protection that most citizens need to cover themselves in the event of unexpected monetary loss.
All but two U.S. states require car owners to carry insurance, and the other two still expect a motor vehicle operator to be responsible for any accident involving other vehicles, people, or property.
Coverage is State Specific
Many states have adopted laws concerning personal injury protection, which covers expenses that result as a direct cause of an accident. This is called no-fault insurance most times because that is what the laws governing personal injury protection are called. The term no-fault means that the money is paid no matter who is responsible or liable for an accident.
Most insurance premiums increase when a person is legally liable in an accident, but no-fault does not. There are sixteen states that required automobile drivers to have personal injury protection to operate motor vehicles. The coverage for PIP is different from state to state as to what is acceptable under coverage and what treatments are permissible.
In many states, laws require that insurance companies pay out covered expenses immediately, but they are allowed to go after the responsible party for those costs when that is determined. This is a much better situation for the person covered by PIP because bills can be paid timely instead of waiting for a judgment.
In some states, a person who draws a Workman’s Compensation benefit following an accident cannot also get PIP benefits, while others have no such stipulation.
Determine Coverage Before an Accident
Auto medical payments coverage is comparable to personal injury protection in some states. You may ask questions to determine if sufficient coverage is in place without PIP, which is a good way to prevent double coverage and higher premiums. Insurance agents can explain what is legally required and what limits are reasonable under most conditions.
PIP may cover medical and funeral costs for everyone in the vehicle during an accident, as well as pedestrians who might be involved. Generally, coverage is primarily for the person insured and the limits are varied based on the policy and the state. Amounts can be as low as $1500 or as much as $250,000.
Even though PIP may not be a requirement, it is a good idea to discuss it with an agent to be certain you are comfortable with your coverage.