1. everything millenials need to know about personal injury protection

Young people have always had a tendency believing they're going to live forever. Unfortunately, this belief is hardly the case in reality. As adulthood dawns upon millennials, many are wading out into a sea filled with insurance agencies, policies and different levels of coverage. Many hear terms like "Personal Injury Protection" but don't fully understand what they mean. If you're among them, do not fear; we have the answers you're looking for right here.

What is Personal Injury Protection insurance? 
Personal injury protection acts as an extension of your auto insurance and is designed to cover any medical costs or loss of income that may occur as the result of a car accident. According to Nationwide, personal injury protection policies often cover up to 80 percent of a policyholder's auto-related medical bills. In addition, PIP insurance usually takes care of any travel expenses, medical appointments, rehabilitation or funeral expenses incurred to the policyholder due to an accident. 

"PIP insurance policies are also often known as 'no fault' coverage."

Some PIP policies will even cover passengers riding in the policyholder's car at the time of an accident. Usually, some of the passenger's medical expenses will be covered under the driver's PIP, regardless of that passenger's medical insurance. For these reasons, PIP insurance policies are also known as no-fault coverage. 

Why millennials should get PIP: 
Insurance policies can be confusing, especially for American millennials dealing with shifting trends in health insurance policies. There are plenty of insurance agencies which all provide individual coverage rules, with premiums affected by seemingly everything under the sun. If that's not enough, the legality of insurance differs state by state, which can be enough to make anyone crazy. However, taking the time to gain a thorough understanding of insurance can help young people get ahead and save money in the long run.

In a 2014 study by the Journal of Adolescent Health, only 52 percent of millennials age 19 to 30 were able to correctly define the term "deductible," which is the initial amount that an insurance policyholder must pay out-of-pocket toward medical or automobile expenses before their insurance coverage activates. Additionally, more than three-quarters of JAH study participants incorrectly defined the term "coinsurance." 

"Millennials should look to PIP policies for early-life coverage, as well as disability insurance." 

According to the CS Monitor, millennials today should look not only to PIP policies for their early-life coverage, but also to disability insurance as well. Disability insurance covers policyholders in the event that they become disabled to the point where work is no longer possible. Many companies offer group rates to their employees for disability insurance. If yours doesn't, don't fret; private policies are often very affordable. Typically, disability insurance will cover the holder for up to 60 percent of their yearly salary until the age of 65.

PIP auto insurance coverage and general disability insurance are just jumping off points into a larger world of insurance knowledge. What's most important for young millennials seeking insurance is to simply begin by asking questions regarding insurance topics and terms that they know little or nothing about. Personal insurance agents are a great resource to begin with, but research shouldn't stop there. Do a little extra digging on your own and you'll be surprised by just how many insurance-related situations you'll be able to successfully navigate. To get your research started, here are a few more commonly misunderstood terms and topics, now clarified: 

  • What is a copay? - A copay acts as an out-of-pocket fee to be paid by the policyholder in order to receive coverage for particular insurance claims. Copays are most common among health and dental insurance policies and are typically paid after an appointment has taken place. 
  • When am I no longer covered under my parents' health insurance? - Persons under 26 years of age are eligible to be covered under their parent's health insurance policies in the U.S. However, this doesn't mean that covered young adults shouldn't begin researching their own plans before turning 26. Neglecting this could result in unintentional gaps in policies that you may not even be aware of.  
  • What are insurance premiums? - Premiums are the amount of money policyholders pay to maintain their insurance coverage. Typically, premiums are paid annually or biannually. 

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