If you follow your state’s auto insurance laws, you probably have personal injury protection, or PIP. PIP insurance, sometimes referred to as “no-fault” insurance, covers the medical costs of those injured in a traffic collision, regardless of which motorist was at fault in the accident. If the injuries incurred in the accident are so severe that they require the injured person to miss work, PIP will even cover the lost wages.
Whether your state does or doesn’t require you to carry a PIP insurance plan, you should get one, it could come to save your life’s savings.
Frequently Asked Questions About PIP
It’s understandable if you don’t want to immediately invest in a PIP insurance plan, especially if you don’t have to. But if you knew more about PIP insurance and how bundling your insurance plans will get you a discount, you might be more inclined to sign on the dotted line. Here are seven FAQs about PIP insurance that should help you to figure out whether PIP is worth it or not. (Psst..it is!)
Q: Is PIP insurance a mandatory requirement in my state?
A: PIP insurance is mandatory in 15 of the 50 states: Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas and Utah. The District of Columbia and Puerto Rico also mandate PIP.
Q: What type of coverage does PIP insurance include in my state?
A: PIP insurance coverage varies by state. In general, PIP insurance covers the medical expenses and lost wages of those injured in the car crash, no matter who was at fault. If a motorist or passenger should die in the accident, the Department of Motor Vehicles (DMV) reports that PIP will cover the funerary costs.
Q: Is PIP insurance expensive?
A: In a word, no. Your auto insurance premium is based on your driving history. If you haven’t been involved in any accidents and have only incurred a couple of minor traffic violations, your PIP insurance rate will be more than affordable, especially when you compare rates with CoverHound!
Q: Why is PIP insurance also called “No-Fault” insurance?
A: PIP insurance is referred to as “No-Fault” insurance because it will cover a driver’s claim regardless of whether or not they were at fault in the accident.
Q: How is PIP insurance different from medical payment coverage?
A: Both PIP insurance and medical payment coverage cover the costs of injury sustained in an accident no matter who is at fault. Only PIP offers additional coverage for lost wages, rehabilitation and funerary costs.
Q: Can I set limits on my PIP insurance if I already have health insurance?
A: Yes, you can set monetary threshold limits on your PIP coverage, you just need to make sure the limits still meet your state’s PIP insurance laws.
Q: If I have PIP insurance, can I get rid of my liability auto insurance coverage?
A: No, you cannot get rid of your liability coverage if you have PIP insurance. Liability auto insurance covers the injury sustained to the other driver and the damage to their vehicle when the accident is found to be your fault. Liability and PIP are required by state law, with liability coverage a necessity in almost all 50 states.
The more insurance you have, the better protected you are after an accident. Get your personal injury protection plan with CoverHound today.
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