How Does Personal Injury Protection Insurance Work?

Personal injury protection (PIP) is a type of insurance that generally only works by covering a person’s medical expenses after an accident. It is typically thought of as a no fault policy because it provides coverage to the injured individual regardless of who was actually responsible for the accident. This is the case whether the accident was a collision between two vehicles, a slip and fall or some other type of incident. If you have any confusion over this type of coverage, you might want to get in touch with the Benedict Morelli Law Firm for clarification.

What Does PIP Insurance Cover?

In addition to covering a person for their medical expenses after they have been injured in an accident, PIP insurance goes a bit beyond that. For instance, it covers the individual’s expenses for transportation to medical appointments and even things like lawn repair. In some cases, it even covers funeral expenses and lost wages. Additionally, when the individual is unable to care for himself or herself due to their injuries, PIP may cover the cost of a caregiver if one is necessary.

Is PIP Insurance Required?

Interestingly, PIP insurance is mandatory in 13 states, including Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and the District of Columbia. It is available in many of the other states as an optional part of insurance coverage.

Generally, what is covered by PIP insurance depends on the state. In other words, each state determines what is reasonable under PIP insurance coverage. For instance, in Utah, acupuncture is considered to be a reasonable type of medical treatment under PIP coverage, but that is not the case in California.

Why Do Some of the States Require PIP Insurance?

The 13 states that require people to get PIP insurance do so in the hopes that there are fewer lawsuits filed against drivers who are at fault for car accidents. Although in some cases, it has thwarted legal action, each of the states also has laws that allow drivers to file lawsuits against others due to certain situations.

How Does PIP Insurance Differ from Bodily Injury Liability?

In general, there are differences between PIP insurance and bodily injury liability. The main one is that bodily injury liability makes payments to individuals to whom a person is legally obligated because they were responsible for the accident that led to their injuries. PIP, on the other hand, covers only a person’s own medical expenses. When someone has bodily injury liability, they are also covered for their legal defense expenses.

How Much PIP Coverage Do You Need?

The amount of PIP coverage you choose should depend on your health insurance plan. If your health insurance covers you with sufficient benefits following an accident, you might want to go with the smallest amount of coverage. On the flip side, if your health insurance doesn’t cover you for injuries stemming from a car accident, you might want greater PIP coverage to ensure that you’re fully covered in the event of an accident.

If you have any concerns about PIP insurance, contact the Morelli Law Firm at your earliest convenience.