Understanding Auto Insurance: Pip 60 And You

Personal injury protection (PIP) insurance, also known as no-fault insurance, covers medical bills and lost wages when you or your passengers are injured in a car accident. PIP is required in some states and optional in others. It covers medical expenses, lost wages, rehabilitation costs, replacement services, funeral expenses, and survivor benefits. PIP is different from bodily injury liability insurance, which covers the medical expenses of drivers and passengers in other cars when the policyholder is at fault for an accident.

What does PIP insurance cover?

Personal injury protection (PIP) insurance, also known as "no-fault insurance," covers medical expenses and lost wages following a car accident, regardless of who is at fault. PIP insurance may also cover other costs, depending on the state and the specific insurance policy.

PIP insurance covers medical expenses, including rehabilitation costs, for you and your passengers following a car accident. This includes medical and surgical treatment, ambulance fees, and medication. In some states, PIP insurance will only cover a percentage of medical costs. For example, in Florida, PIP insurance covers 80% of medical costs, while in Massachusetts, it is the primary payer for the first $2,000 in medical expenses, after which the driver's personal healthcare coverage takes over.

In addition to medical expenses, PIP insurance can also cover:

• Lost wages due to injuries
• Replacement services for tasks you are unable to perform due to your injuries, such as childcare or house cleaning
• Funeral expenses and survivor benefits

It is important to note that PIP insurance does not cover all injury-related expenses. It typically does not cover bodily injuries to other drivers 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.

PIP insurance requirements

PIP insurance requirements vary by state. In some states, PIP insurance is required, while in others, it is optional or not available. In no-fault states, PIP insurance is typically mandatory as it covers your own expenses regardless of who is at fault in an accident.

When is PIP insurance required?

Personal injury protection (PIP) insurance is required in 15 states as part of "no-fault auto insurance" laws. In these states, drivers must carry a minimum amount of PIP coverage, which varies by state.

The 12 no-fault states that require PIP insurance are:

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

Additionally, three states require PIP but do not have no-fault insurance laws:

• Oregon
• Pennsylvania
• Utah

In some states, PIP is optional or can be waived. These states include:

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

PIP insurance is not available in all states. It is important to check the requirements and options for your specific state.

When is PIP insurance optional?

Personal injury protection (PIP) is optional in most states, but 16 states require a minimum amount. In some states, PIP is optional and unavailable in others.

PIP insurance is optional in the following states:

• Arkansas
• Connecticut
• Pennsylvania
• Texas
• Washington
• Kentucky
• New Jersey
• District of Columbia

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. In Pennsylvania, you can choose either full or limited tort. In Texas, if your state has a low required PIP limit, a MedPay policy may provide supplemental coverage.

If you live in a state where PIP coverage is optional, consider the extent of your health care coverage before purchasing it. If you have limited health care coverage or a high health insurance deductible, PIP may be beneficial.

How much does PIP insurance cost?

The cost of PIP insurance varies depending on factors such as coverage level, age, type of vehicle, insurance company, and location. For example, in Florida, PIP insurance typically covers 80% of medical bills and 60% of lost wages, up to $10,000. In Michigan, PIP limits are much higher, which is one of the reasons car insurance is more expensive there.

In general, PIP insurance is relatively inexpensive, with monthly costs ranging from $5 to $50 for the coverage limits offered. However, no-fault coverage is typically more expensive than what is found in states with at-fault insurance laws.

The Zebra provides an example of the cheapest car insurance quotes from Geico for a 30-year-old male driver with no accidents, good credit, and the owner of a 2010 Toyota Camry in Florida. The total price includes a six-month policy with $25,000/$50,000/$25,000 of liability insurance, $10,000 of PIP coverage, and comprehensive and collision coverage with $500 deductibles. The annual cost of MedPay insurance coverage in Florida, Kansas, and Massachusetts is also provided.

According to MoneyGeek, the cost of no-fault PIP insurance ranges from $50 to $200 per six-month period in states requiring it. Michigan is an exception, with policies costing up to $500 per six-month period before the law changed in July 2020.

How do you file a PIP claim?

To file a PIP claim, you must first notify your car insurance company about the accident. They will then instruct you on how to get the claim process started. This may involve using an online tool or completing the process over the phone.

You will need to submit medical bills, proof of lost income, and receipts or invoices for other covered out-of-pocket losses. The insurance company will then compensate you for those losses under the terms of your coverage.

It is important to cooperate with your insurer when making a PIP claim. This means responding promptly to requests for information and being truthful about the nature and extent of your injuries.

In some states, there may be a two-part medical bill limit. In these cases, if the injured person has health insurance, the PIP insurer might only pay a small amount of the medical bills (e.g., the deductible), and the health insurer will pay the remainder.

It is also important to follow your auto insurance company's process and timeline when filing a PIP claim. For example, in New Jersey, any medical care or treatment within the first 10 days of the accident must be approved and certified by your insurance company. Failure to provide the required documentation can result in a co-pay penalty.

In New York, all medical bills should be submitted within 45 days of treatment to be considered for payment. Ask your insurance agent for their specific PIP claim process requirements, and keep a copy on hand in case you need to file a claim.

Frequently asked questions