If you live in a “no-fault” insurance state, you will need a policy that covers your car accident-related damages no matter who was at fault. Personal Injury Protection (PIP) is a type of no-fault insurance that is required in several states.
Even if you do not live in a no-fault insurance state, getting PIP coverage is still a smart investment. Your insurance provider should give you the option to purchase PIP or a similar policy. Unlike standard liability insurance, which pays for medical bills and property repairs sustained by other people in the event that you cause a crash, PIP will cover a portion of your medical bills and lost income no matter who was liable for the wreck. If you die in an accident, your PIP policy may also cover your funeral expenses. PIP also covers the loss of essential services such as household tasks like childcare and cleaning.
PIP coverage may also be used by certain members of the policyholder’s household. For example, if you cause an accident and your wife has PIP coverage, you might be able to file a claim against her policy.
Can Health Insurance Cover My Medical Bills?
Generally speaking, health insurance can cover your medical bills after a car accident; however, it won’t cover your passengers’ healthcare expenses. Your PIP coverage should cover injuries to your passengers.
What Is Med Pay?
Some states refer to no-fault insurance as “Med Pay” coverage. While similar, Med Pay and PIP differ in a few key ways. For instance, Personal Injury Protection is required in no-fault states while Med Pay is not. Also, Med Pay usually does not cover as much as PIP does. Med Pay typically covers surgeries and medical care right after an accident. Personal Injury Protection covers these plus psychiatric and rehabilitative care.
3 Reasons to Purchase Personal Injury Protection Coverage
Not sure if this type of coverage is necessary? Here are three reasons to consider adding no-fault insurance to your existing coverage:
- Your PIP coverage could pay up to 80% of the medical expenses incurred due to your accident, even if you were the driver at fault.
- Unlike other types of policies, PIP coverage takes care of your passengers’ medical expenses.
- Some PIP policies can even cover your lost wages after an accident.
What Isn’t Covered by Personal Injury Protection?
If you drive a standard car, your medical and auto repair expenses can be covered by your PIP insurance. However, if you drive an unconventional vehicle like a motorcycle, off-road vehicle, or piece of farming equipment, your expenses will not be covered by PIP insurance. Also, Personal Injury Protection will not cover you in the event of a racing-related crash.
If You Live in One of These States, You Must Buy Personal Injury Protection Coverage
If you live and drive in a no-fault state, you are required to purchase PIP coverage. These states include:
- New Jersey;
- New York;
- North Dakota;
- Pennsylvania; and