Do you live in a state that requires
personal injury protection? Or do they offer it as an option? If answered yes,
there are several important factors that you need to know about this protection
insurance before purchasing it. Personal injury protection covers expenses that
are related to injuries which you’ve sustained through a covered accident. Such
expenses may include hospital and medical bills and also expenses that are not
covered by your health insurance policy. The coverage that you get will depend
on the state in which you reside and this PIP insurance can offer to be a great
supplement to your health insurance policy. Read on to know more on this kind
of insurance.
Personal Injury Protection – What does it cover?
Before you decide on how much coverage you
need to carry, you first require knowing how it works and what it protects. PIP
is most often offered as “no-fault” insurance and this is because it kicks in
irrespective of whether or not you were the cause of the accident. With such
personal injury protection coverage, you and your passengers are covered for:
- Lost wages.
- Medical bills and other related expenses.
- Associated costs related to injuries like lawn maintenance, travel expenses, child care etc.
Vital tips on personal injury protection coverage
If you’re deciding on how much PIP coverage
to carry, here are some vital tips that you should consider.
- If you reside in a state that requires you to have personal injury protection coverage, make sure you have at least the minimum amounts.
- Give a close eye to the present health and car insurance policies. Do you have adequate protection against car accident injuries? If yes, then you won’t need high amounts of PIP coverage. If you do, you will not only be wasting your dollars but also overlapping policies. If the coverage is lacking, then you can supplement your health insurance with PIP.
- Do you often drive with passengers who are not your immediate family members? If yes, then it is better to purchase higher amounts of PIP coverage, especially if you know that some among them are either underinsured or uninsured. PIP, in such cases, offers blanket coverage for you and your passengers.
- If you’re middle-aged or older with extensive insurance coverage, you might not require heavy amounts of PIP coverage. On the other hand, if you’re young and you have limited insurance, you would better have high amounts of PIP coverage.
Difference between personal injury protection and
bodily injury liability
Even in cases where PIP is required,
drivers still require having bodily injury liability on their auto insurance
policies. Well, for your information, liability coverage comes in only when
another driver sues you successfully for damages or when some state-defined
damage thresholds are exceeded. PIP is for you and your co-passengers, and
bodily injury liability is for the damage that you cause. Assess your needs and
get both if needed.