Understanding Pip Insurance: Your Guide To Post-Accident Coverage And Care

Personal injury protection (PIP) insurance, also known as no-fault insurance, covers medical bills and other related costs resulting from a car accident, regardless of who is at fault. PIP covers the policyholder and their passengers, even if they don't have health insurance. PIP is required in some states as part of no-fault auto insurance laws that restrict the ability to sue for car crash injuries. In other states, it is optional or unavailable. PIP generally covers medical expenses, lost wages, rehabilitation costs, replacement services, and funeral expenses. However, it does not cover bodily injuries to other drivers or their passengers, injuries sustained while committing a crime, or damage to someone else's property.

What does PIP cover?

Personal Injury Protection (PIP) covers medical expenses and lost wages for you and your passengers if you're injured in an accident, regardless of who is at fault. PIP is also known as "no-fault insurance" and is mandatory in some states and optional or not offered in others.

PIP covers medical expenses for both injured policyholders and passengers, even if they don't have health insurance. It also covers lost income, childcare, and funeral expenses related to the accident.

The types of expenses covered vary by state but may include:

• Ongoing professional care
• Lost wages, if you're unable to work
• Funeral expenses and accidental death benefits
• Some home care expenses, such as childcare or house cleaning, if you're unable to do them yourself

PIP does not cover damage to your vehicle, theft of your vehicle, or damage to someone else's property. It also does not cover injuries to the other driver and their passengers, injuries from an accident while committing a crime, or injuries from an accident while being paid to drive.

What doesn't PIP cover?

Personal Injury Protection (PIP) insurance does not cover everything. Here are some key things that are not covered by PIP:

• Bodily injuries to other drivers and their passengers: PIP covers medical expenses for the policyholder and their passengers, but it does not cover the injuries of other drivers and their passengers in a collision.
• Injuries sustained while committing a crime: If you are injured in an accident while engaging in criminal activity, such as fleeing from the police, your PIP insurance will not cover those injuries.
• Injuries sustained while driving for work: If you are injured in an accident while driving for work purposes or receiving payment for driving, your PIP insurance will not provide coverage.
• Damage to someone else's property: PIP insurance is focused on personal injury protection and does not cover damage to someone else's property.
• Damage to your vehicle: Similar to the previous point, PIP does not cover damage to your own vehicle.

It is important to note that PIP coverage can vary from state to state, so it is always a good idea to review the specific details of your insurance policy and understand the requirements and limitations of your particular state.

When is PIP required?

Personal Injury Protection (PIP) is required in some states as part of "no-fault auto insurance" laws that restrict your ability to sue for car crash injuries. If you live in a state that requires PIP, you will need to buy it even if you have health insurance.

Twelve states mandate PIP through "no-fault insurance" laws:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota

Three other states require PIP but lack "no-fault insurance" laws:

• Oregon
• Pennsylvania
• Utah

In addition, PIP is optional coverage in four states and the District of Columbia and is unavailable in other states.

If you live in a state where PIP is optional, you might choose to decline it if you have a good health insurance plan that you'd use for car accident injuries. However, PIP has some perks that health insurance won't offer, such as reimbursement for lost wages and payments for services you can't do, such as house cleaning.

When is PIP optional?

Personal Injury Protection (PIP) is optional in some states and unavailable in others. In states where PIP is optional, it's generally good coverage to have. This is because PIP can help cover expenses such as health insurance deductibles, lost wages, and replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning.

PIP is optional in the following states:

• Arkansas
• Connecticut
• District of Columbia
• Pennsylvania
• Texas
• Washington

In Arkansas, you can reject PIP in writing if you don't want it. In Connecticut, you can choose basic reparation insurance or medical payments coverage, or neither. Basic reparations coverage is like PIP and includes medical expenses, lost wages, replacement services, funeral expenses, and survivor benefits.

In the District of Columbia, PIP covers medical bills and rehabilitation, loss of income due to the accident, replacement services for personal and family tasks, and funeral benefits up to $4,000 per victim.

In Pennsylvania, the minimum PIP coverage you must buy is $5,000. Pennsylvania drivers can choose either full or limited tort. With a full tort auto insurance policy, you have unlimited rights to sue another driver. Limited tort costs less, and you can still sue someone for medical expenses after an accident, but you won't be able to sue them for pain and suffering unless you have a "serious" injury.

In Texas, if a Texas driver crashes into you, you'll first make injury and lost-wage claims on their liability insurance. If their insurance isn't enough, you can turn to your auto or health insurance for the remaining bills. Texas PIP benefits can be as low as $2,500.

In Washington, the minimum PIP coverage includes limits of $10,000 for medical expenses for each person, $200 a week for lost wages ($10,000 total maximum), $200 a week to pay for services you can't perform ($5,000 total maximum), and $2,000 for funeral expenses. The maximum PIP coverage you can buy in Washington is $35,000.

How does PIP work with health insurance?

Personal injury protection (PIP) is a type of insurance that covers medical and rehabilitative costs for you and your passengers in the event of a car accident, regardless of who is at fault. PIP is also known as "no-fault" insurance and is required by law in all no-fault states, including Florida. Even if you have health insurance, it is still necessary to have PIP coverage.

In the event of a car accident, PIP will cover the medical expenses of both the policyholder and their passengers, regardless of whether they have health insurance. PIP policies have a minimum coverage amount and a per-person maximum coverage limit, which is usually set at $10,000. If the cost of medical care exceeds the PIP limit, health insurance may cover the additional expenses.

PIP also provides benefits that health insurance typically does not, such as lost wages, funeral costs, and replacement services for tasks you are unable to perform due to your injuries. For example, if you are unable to work due to your injuries, PIP can cover a portion of your lost wages. Additionally, if you require childcare or house cleaning services as a result of your injuries, PIP can provide reimbursement for these expenses.

In summary, while health insurance is important for covering medical expenses, PIP offers additional protection in the event of a car accident by covering medical costs, lost wages, and other related expenses, regardless of who is at fault.

Frequently asked questions