What Is Personal Injury Protection Insurance?
Personal injury protection insurance, or PIP insurance, is designed to cover lost wages and medical bills that occur as the result of a car accident. With a standard auto insurance policy, the person who is responsible for the accident will cover the costs of it. However, PIP insurance is no-fault coverage. This means that regardless of who caused the accident, the insurance will pay for it.
How Is Personal Injury Protection Insurance Different From Medical Payments Coverage?
Medical payments coverage is very similar to personal injury protection insurance. However, medical expenses are the only things that are covered by medical payments coverage. Personal injury protection insurance provides additional coverage for things like lost wages.
Do I Need PIP Insurance?
Because personal injury protection insurance is such a worthwhile investment, everyone should consider getting it. Many people think that if they have health insurance, then all of their medical expenses will be covered. However, that is not always the case. Personal injury protection insurance can cover any expenses that are not covered by health insurance.
The amount of coverage that you are able to get with personal injury protection insurance is dependent on the type of insurance that you have. However, some policies will cover up to 80 percent of the medical expenses that are related to the accident. For example, if the total costs of the medical expenses is $200,000, then PIP insurance may cover up to $160,000.
Keep in mind that there are other things that may be covered by PIP insurance. This includes things such as funeral costs, rehabilitation costs and service replacement of someone who is injured in an accident. Personal injury protection insurance can potentially help you save a lot of money.
Furthermore, it is important to note that Florida is one of the states that requires drivers to have some type of personal injury protection insurance. New York and Massachusetts are other states that require drivers to have personal injury protection insurance. Even if a state does not require personal injury protection insurance, a person who does not have PIP insurance may still be required to sign a waiver.
A waiver is document stating that one has declined to own PIP insurance. It also states that by signing the document, a person understands the risks of not having PIP insurance. People who live in a no-fault state where coverage is not mandated will need to sign a waiver. Contact us to learn more.