PIP insurance (also known as no-fault insurance) is a type of auto insurance that covers costs such as medical bills, funeral expenses, lost wages, and other expenses after a car accident, no matter who is at fault for the accident . 16 of the 50 states in the United States require drivers to carry no-fault insurance policies.
how does personal injury protection (pip) insurance work?
drivers with personal injury protection (pip) insurance are compensated up to a certain limit by their own insurance company for medical bills, rehabilitation costs, funeral costs, lost wages, and other costs caused by an accident motoring. this payment extends to both the driver and his passengers.
Reading: How to collect pip insurance
pip insurance benefits are paid to the policyholder after an accident claim is filed, regardless of who is at fault.
In states where a driver is required to carry pip insurance as part of their auto insurance policy, the driver first files the car accident claim through their own insurance and their insurance carrier is responsible for paying compensation up to a limit established by the state.
These thresholds can be monetary or verbal, depending on the state.
A monetary threshold means that the expenses caused by the injuries must be greater than a certain amount of money while a verbal threshold means that the injuries reach a certain level of severity. the severity level usually means loss of bodily function or permanent injury.
Many minor injury claims do not exceed the threshold set by the state, but in serious injury cases, the cost may be too high for the driver’s pip coverage. Only after that minimum threshold has been met can the driver file a claim with the other driver’s insurance company or file a lawsuit against the other driver to receive compensation for their injuries.
what does no-fault insurance cover?
pip insurance can cover the following costs for both the driver and his passengers:
- medical expenses
- rehabilitation costs
- lost wages funeral expenses
- substitute services such as cleaning services if you are unable to clean your home due to your injuries
- new jersey
- new york
- north dakota
- new hampshire
- south dakota
pip insurance does not cover damage to the driver’s property or injuries sustained by the other driver and their passengers.
Which states have no-fault insurance?
12 states and puerto rico require drivers to have pip insurance and follow no-fault laws:
Some states don’t have no-fault laws, but still require drivers to have pip insurance policies. these states are:
There are some states where pip insurance is available even though states do not require drivers to carry no-fault insurance and have no no-fault laws. these states are:
See also: COBRA continuation coverage | ERS
drivers in washington d.c. You can also purchase PIP insurance, although the district does not have no-fault laws.
is pip insurance worth it? are there alternatives?
Drivers who live in a state that requires them to purchase PIP insurance as part of their car insurance policy must have PIP insurance in order to legally drive.
If your state doesn’t require you to purchase no-fault insurance, you may want to consider relying on your health insurance plan to cover any injuries you may sustain in a car accident. this, of course, depends on the benefits of your existing health insurance plan.
That said, it may be worth buying pip coverage even if you have a good health insurance plan because it may cover some things that health insurance won’t cover, like paying for lost wages or paying for replacement services like house cleaning. home .
how to collect pip insurance
To collect PIP insurance after a car accident, you must file a claim with your car insurance company. After you’ve filed your claim, the insurance company must review it and pay your benefits to cover your expenses.
A problem with collecting pip insurance that injured drivers may encounter is that since insurance companies make their money by collecting insurance premiums rather than paying claims, your insurance company may do everything in its power to devalue your claim and pay the minimum if they pay anything.
After a car accident, the best thing you can do is contact an experienced car accident attorney to guide you through the claim process and ensure you get the compensation you deserve. An experienced car accident attorney can also help you get compensation for things pip doesn’t cover, like damage to your car, your property, and pain and suffering.