Health Or Auto Insurance: Which Is The Better Option?

Personal Injury Protection (PIP) is a type of insurance that covers medical expenses and lost wages resulting from a car accident, regardless of who is at fault. While health insurance covers medical expenses, it often does not cover non-medical expenses like lost wages, funeral costs, and domestic services such as house cleaning or childcare. PIP is required in some states and optional in others. Even if you have health insurance, PIP can provide additional coverage for accident-related expenses. Therefore, it is essential to understand the differences between PIP and health insurance to make an informed decision about whether to have both types of coverage.

PIP is mandatory in some states, optional in others

Personal injury protection (PIP) is auto insurance that 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 mandatory in some states and optional or not offered in others.

Twelve states require drivers to carry a minimum amount of PIP insurance, but the required amount varies by state. These states are Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas, Utah, and Washington.

Five states plus Washington, D.C., offer PIP as an optional add-on or allow drivers to waive it in writing. These states are Arkansas, Connecticut, Kentucky, New Jersey, and Pennsylvania.

The cost of PIP coverage varies with each company. If you live in a state where PIP is optional, consider your health insurance coverage and your ability to cover lost wages if you're in an accident and have to miss work. PIP can help cover expenses such as your health insurance deductible, lost wages, and replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning.

PIP covers medical expenses

Personal injury protection (PIP) is a type of auto insurance that covers medical and rehabilitative costs for you and your passengers in the event of a car accident. It is also known as "no-fault" insurance because it applies regardless of who is at fault for the accident. PIP covers reasonable medical costs, including surgeries, X-rays, dental or eye treatments, prosthetic devices, and professional nursing care. It also covers rehabilitation therapy, lost income resulting from the accident, and replacement of necessary services that the injured party can no longer perform, such as family care or household maintenance.

In some states, PIP is mandatory as part of "no-fault auto insurance" laws, while in others it is optional or not available. The amount of PIP coverage required varies by state, with minimums ranging from $2,500 to $15,000. Even in states where PIP is not required, it can still be a valuable addition to a car insurance policy, especially if your health insurance has high deductibles or does not cover all the expenses that PIP does.

While PIP covers a range of medical expenses, there are some things it does not cover. It does not cover bodily injuries to the other driver and their passengers, injuries sustained while driving for work purposes, injuries sustained while committing a crime, damage to someone else's property, or damage to your own vehicle.

Overall, PIP provides valuable financial protection in the event of a car accident, ensuring that you and your passengers can receive the medical care and support you need, regardless of who is at fault.

PIP covers lost wages

Personal injury protection (PIP) insurance is a type of auto insurance that covers lost wages, medical expenses, and other related costs if you or your passengers are injured in an auto 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, Michigan, and New York.

In the state of Florida, every vehicle and vehicle owner must carry a minimum of $10,000 in PIP coverage on their auto insurance policy. This law protects drivers in the event of an accident, as car crashes are all too common in the state. PIP can cover 60% of lost wages, up to a $10,000 limit, for the policyholder who is unable to work due to their injuries. This also includes services that the injured policyholder is no longer able to perform, such as chores, laundry, pet care, and housework.

To receive lost wages benefits, the policyholder must complete and submit a form to an adjuster, who then has 30 days to pay the bill from the date of receipt. It is recommended that the policyholder or their attorney submit these bills as soon as possible. It is important to check the individual PIP policy regarding lost wages protection, as some policies may exclude coverage for lost wages.

While PIP covers lost wages, it is important to note that it does not cover all injury-related expenses resulting from an auto accident. For example, if the policyholder caused an accident that resulted in injuries to others, they would need to file a claim under the bodily injury portion of their liability car insurance. Additionally, liability car insurance covers legal costs, settlements, and judgments if the policyholder is sued due to an auto accident.

In summary, PIP insurance provides valuable coverage for lost wages and other related costs in the event of an auto accident, offering financial protection to the policyholder and their passengers.

PIP covers services you can no longer perform

Personal injury protection (PIP) is a type of insurance that 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 required by law in all no-fault states.

PIP covers services that you can no longer perform, such as chores, laundry, pet care, and housework. If you are injured or disabled in an auto accident and are required to take time off work, your personal injury protection will pay for 60% of your lost wages, up to $10,000. This coverage is extremely valuable if you are unable to work and are the primary source of income for your household.

In addition to lost wages, PIP can also cover the cost of hiring someone to perform essential services that you are unable to do as a result of your injuries. These services can include childcare, house cleaning, and yard work. This aspect of PIP coverage can be especially helpful for busy parents or individuals who are unable to care for themselves due to their injuries.

The specific benefits of PIP coverage may vary depending on your state and insurance provider. It's important to review your policy carefully to understand what is and isn't covered. Additionally, some states offer PIP as optional coverage, while others require it by law.

PIP covers funeral costs

Personal Injury Protection (PIP) is a type of insurance that covers medical and rehabilitative costs for you or your passengers in the event of a car accident. It is also known as "no-fault" insurance because it is required by law in all no-fault states, including Florida.

The PIP death benefit is in addition to any wrongful death case that may arise from the accident. While PIP provides quick access to funds to cover funeral expenses, a wrongful death claim can result in significantly higher compensation.

It is important to note that PIP coverage limits and requirements vary by state. In some states, PIP is optional, while in others, it is required by law. Therefore, it is essential to review the specific PIP requirements and coverage limits in your state.

Overall, PIP is an important form of insurance that can provide financial protection in the event of a car accident, including funeral costs in the unfortunate event of a fatality.

Frequently asked questions