Are you considering purchasing personal injury protection (PIP) insurance coverage? If so, you’re likely wondering what this type of insurance is and whether or not it’s worth your money, as it’s not always clear what PIP covers or how it can help.
Some states require drivers to carry PIP insurance, so it’s important to know your options and when to add this type of coverage to your auto insurance policy.
Here’s everything you need to know about personal injury protection coverage to help you make an informed decision about whether you should opt to include it on your policy.
What is personal injury protection?
Personal injury protection, or PIP, insurance coverage provides financial assistance to help cover medical or hospital bills and costs not covered by your health insurance after an accident, regardless of who is at fault for the accident.
Depending on where you live, your state may require you to carry PIP insurance, or you may be able to add it to your policy as an additional coverage type.
When you file a personal injury protection claim via your car insurance company, medical bills and lost wages may be reimbursed up to your coverage limit amount.
What does Personal Injury Protection cover?
Personal injury protection coverage helps pay for medical expenses for you and your passengers in the case of an at-fault or no-fault accident, even if you don’t have health insurance. This may include costs associated with surgeries, dental treatment, hospital stays, ambulance rides, and medical devices.
Additionally, in some cases, PIP covers loss of income and childcare or house cleaning expenses needed as a result of the accident, as well as funeral costs. Depending on your specific policy agreement, these costs are covered up to the amount stated in your coverage limits.
Personal injury protection only covers medical and other expenses for you and your passengers. It does not help pay for the medical bills or lost wages of a person in another vehicle involved in the accident. Nevertheless, most states require drivers to carry bodily injury liability coverage to help pay for another person’s injuries if you’re at fault for an accident.
It’s also important to note that personal injury protection does not cover the cost of damages to your vehicle in an at-fault accident – you must carry collision coverage for that expense to be covered. It also doesn’t help pay for the cost of damages to another person’s property in an at-fault accident – you must have property damage liability coverage for that.