Personal Injury Protection: What Insurance To Carry

Personal injury protection (PIP) is a type of car insurance that covers medical costs and lost wages if you get injured in a car accident. PIP is also called no-fault protection because it covers you regardless of who is at fault. PIP insurance helps fill in the coverage gaps for you and your passengers from medical costs that your health insurance company won't cover. PIP is required in some states and optional in others. It covers medical expenses, lost wages, rehabilitation costs, replacement services for things you can't do yourself, and funeral expenses. If you live in a state where PIP is required, you need to have it. If it's optional, it's a good idea to take advantage of this coverage, especially if you have gaps in your health insurance coverage or high deductibles.

Medical expenses

Personal injury protection (PIP) insurance is a specific type of car insurance that covers medical expenses and lost wages in the event of injuries sustained in a car accident. PIP is mandatory in some states and optional or unavailable in others. It is also known as "no-fault insurance" because it covers medical expenses regardless of who is at fault in an accident.

PIP covers medical expenses for the insured person and anyone else covered by their policy. This includes passengers in the insured person's car, as well as the insured person if they are a passenger in someone else's car or if they are hit by a car while walking or riding a bicycle.

The types of medical expenses covered by PIP vary by state but generally include:

• Hospital and medical bills, including surgeries, dentistry, optometry, ambulance rides, medication, prosthetic devices, and other medical supplies.
• Physical or occupational therapy and rehabilitation costs.
• Ambulance or emergency room fees.
• Medical procedures like x-rays or MRIs.
• Home nursing or aftercare expenses.
• Funeral, burial, or cremation costs.

In addition to medical expenses, PIP can also cover other costs associated with an accident, such as lost wages, household services (e.g., childcare, house cleaning, yard work), and disability. It may also provide death benefits to the family of the insured person in the event of a fatal accident.

The amount of coverage provided by PIP depends on the state and the specific policy. For example, in Florida, PIP covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury.

When considering whether to purchase PIP, it is important to compare it with other types of insurance, such as health insurance and medical payments coverage (MedPay). PIP may cover some expenses that health insurance does not, such as lost wages and household services. MedPay, on the other hand, typically does not cover these additional expenses but focuses specifically on medical costs. In states where PIP is mandatory or offers more comprehensive coverage, MedPay may be unnecessary.

Lost wages

Personal injury protection (PIP) insurance is a type of car insurance that covers lost wages, medical costs, and hospital bills if you get injured in a car accident. PIP is also called no-fault protection because it covers you regardless of who is at fault. PIP insurance fills in the coverage gaps for you and your passengers for medical costs that your health insurance company won't cover.

To prove lost wages, you will need evidence from your employer, such as a letter or additional documentation. Your employer should include the following information:

• A statement confirming that you were employed at the time of the incident
• The number of hours you usually work in a week
• Typical overtime hours
• The standard overtime rate of pay
• The number of days or hours of work missed

In addition to a letter from your employer, you can use pay stubs, bank statements, and tax returns to help prove your lost wages. If you are self-employed, you may need an accountant to explain your calculations and provide strong documentation of your income.

Rehabilitation costs

The amount of rehabilitation coverage provided by PIP will depend on the specific policy and the state in which it is purchased. For example, in Florida, PIP covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury. In Kansas, PIP provides a minimum of $4,500 per person for medical expenses and $4,500 for rehabilitation expenses.

It's important to note that PIP has minimum coverage amounts and per-person maximum coverage limits set by state governments and insurance companies. These limits can vary, but the maximum is usually no more than $25,000.

When deciding on the amount of PIP coverage to purchase, it's important to consider your health insurance plan and its deductible amount. If you have a low health insurance deductible, you may opt for a higher deductible on your PIP coverage to reduce your auto policy's rate. However, keep in mind that PIP typically comes before health insurance in most states when paying out on a medical claim.

Funeral expenses

Personal injury protection (PIP) is a type of car insurance that covers medical costs, lost wages, and other related expenses if you are injured in a car accident. PIP is mandatory in 12 states and Puerto Rico, and optional in 10 other states and Washington, D.C.

In the event of a fatality, PIP can provide essential financial support for the deceased's family, helping to cover the costs of a funeral, burial, or cremation. This benefit can be especially valuable if the deceased was the primary breadwinner, as it provides a cushion during a difficult time.

The amount of funeral expense coverage provided by PIP varies depending on the state and the policy. For example, in Florida, PIP coverage includes a minimum of $10,000 per person, which can be used for funeral expenses. In other states, the coverage limit may be higher or lower, so it is important to review the specific details of your policy.

When making a claim for funeral expenses under PIP, it is important to provide all necessary documentation, including receipts and bills, to ensure a quick and smooth reimbursement process.

In conclusion, personal injury protection insurance provides valuable coverage for funeral expenses, among other benefits. By understanding the specifics of your policy and the claims process, you can ensure that you are prepared in the unfortunate event of an accident.

Survivor benefits

Personal injury protection (PIP) is a type of car insurance that covers medical costs and lost wages if you get injured in a car accident. PIP is also called "no-fault insurance" because it covers you regardless of who is at fault. PIP is mandatory in some states and optional or unavailable in others.

PIP covers medical expenses for both injured policyholders and passengers, even if they don't have health insurance. It also provides payments for lost income, childcare, and funeral expenses related to the accident. In some states, PIP may also include a deductible.

In addition to survivor benefits, PIP can provide valuable coverage for other expenses related to a car accident. For example, PIP can cover lost wages if you or your passengers are unable to work due to injuries. It can also cover the cost of substitute services, such as childcare, lawn care, or cleaning services, if you are unable to take care of your family or household chores due to your injuries.

When considering how much PIP coverage to purchase, it is important to take into account your health insurance coverage and deductible. If you have good health insurance, you may be able to select a lower amount of PIP coverage. However, if you don't have health insurance or have a high-deductible plan, it may be advisable to purchase at least the minimum amount of PIP coverage.

Frequently asked questions