What Is Personal Injury Protection PIP?

Personal injury protection (PIP), sometimes known as "no-fault insurance," is a feature of motor insurance that pays for medical bills incurred as a result of an accident. Even though some passengers don't have health insurance, PIP covers medical expenditures for both wounded policyholders and passengers.

When the cost of needed medical care exceeds the PIP limits of an auto insurance policy, health insurance may pay additional costs. If numerous persons are wounded in an accident, policies contain a per-person limitation, which limits coverage to a particular sum per person.

Understanding Personal Injury Protection (PIP) Auto insurance rules and features vary by state, and PIP coverage is often only available in no-fault states. If a policyholder is wounded in an automobile accident in a no-fault state, the policyholder's insurance pays for the medical care, regardless of who caused the accident. Even if the other driver is uninsured, policyholders with PIP coverage may be eligible for benefits.

In addition to making medical care more reasonable, PIP coverage frequently covers missed wages, child care, and burial costs incurred as a result of the accident. Medical payments coverage is available in some no-fault states, but it usually has minimal limits and does not cover these additional expenses.

Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Puerto Rico all require PIP auto insurance. In Arkansas, Delaware, Maryland, Oregon, and Texas, it is a required add-on to motor insurance; in New Hampshire, South Dakota, Virginia, Washington, Wisconsin, and Washington, D.C., it is an optional add-on. There are 22 states, one territory, and one federal city total.

Governments of the above entities determine minimum coverage criteria, which can differ. Insurance companies establish the maximums, which might vary, but are normally no more than $25,000 in most cases.

It is necessary that you have PIP coverage if you're resident in a state that mandates it. However, you still have to decide how much you should spend. Do note, however, that if your health insurance policy covers injuries and recovery as a result of an automobile accident, you may just need to purchase the state's minimum amount of PIP. Similarly, if PIP coverage is optional in your state, check your health insurance to see if it covers expenses linked to automobile accidents, as well as your medical expenses.

Except for New Hampshire and Virginia, PIP is not a substitute for liability insurance, which is required in all states (plus Puerto Rico and Washington, D.C.).

Liability insurance covers injuries to third parties, such as pedestrians and drivers and passengers in other vehicles. Professional liability insurance is typically purchased by financial advisers, business owners, landlords, doctors, and lawyers—anyone who may be sued for damages and/or injuries.

A claim can be submitted online or over the phone, just like any other sort of insurance. PIP will assist in the payment of emergency medical costs incurred as a result of the accident. However, you'll be required to examine or pre-approve your treatment plan with a medical expert of your insurer's choosing or an outsourced medical claims processor for ongoing, non-urgent claims.

Your motor insurance company may also allow partial reimbursements or have you examined by a doctor of their choosing. Your policy's coverage varies based on your plan and state. In Florida, for example, PIP coverage will only cover 80% of your medical expenditures.

It's vital to stick to your car insurance company's procedures and timelines. In New Jersey, for example, any medical care or treatment received during the first 10 days of the accident must be approved and certified by your insurance company. Regardless of whether the procedure or diagnostic test was medically necessary or reasonably required, failure to produce the requisite "Attending Provider Treatment Plan" and associated documentation can result in a co-payment penalty of up to 50%.

To be eligible for payment in New York, all medical invoices must be presented within 45 days of treatment; otherwise, written reasons are required. Inquire about your insurance company's PIP claim process and keep a copy on hand in case you're hurt.