What is Personal Injury Protection (PIP) Coverage? A Comprehensive Guide

Personal Injury Protection (PIP) is a type of insurance that provides financial protection in the event of an accident. It pays for medical expenses and lost wages when you or your passengers are injured in a car accident, regardless of who is at fault. PIP coverage is mandatory in some states and optional or not offered at all in other states. It also covers funeral expenses and survivor benefits if injuries caused by a car accident result in death.

If you live in one of the 16 states where PIP coverage is required, you must file a claim under that policy before using your health insurance. However, even if it's not required in your state, PIP insurance offers several benefits that you won't get from a health insurance policy, such as coverage for lost wages and funeral expenses. Some states, such as New Jersey and Michigan, have provisions for your PIP coverage to work together with your health insurance policy. The amount that your policy covers may vary depending on your plan and your state.

For example, in Florida, PIP coverage will only cover 80% of your medical expenses. It's critical to follow your auto insurance company's process and schedule. In New Jersey, for example, any medical care or treatment within the first ten days after the accident must be approved and certified by your insurer. PIP insurance is sometimes referred to as no-fault insurance, since a minimum amount of PIP coverage is required if you live in a no-fault state. In these states, your own insurance policy will cover your expenses even if another driver caused the accident, unless a certain threshold is met.

These thresholds, called liability thresholds, can be monetary or verbal, depending on the state you are in. If the required treating provider treatment plan and documentation are not provided, a co-payment of up to 50% may be penalized regardless of whether the procedure or diagnostic test was medically or reasonably necessary. If you're injured by another driver and have personal injury protection as part of your auto insurance policy, you'll typically exhaust your PIP coverage first before turning to other options. PIP insurance may overlap with your health insurance or MedPay, but there are times when several policies are recommended. MedPay doesn't cover many of the additional expenses that PIP covers, including lost wages, rehabilitation services, or child care. However, if your state has a low limit on the amount of PIP coverage you require, a medical payments policy may offer supplemental coverage. You file a claim like any other type of insurance, whether online or over the phone.

To find the typical price of personal injury protection, we compiled the average state rates of the three major insurers: Allstate, Geico and Progressive in Florida, where personal injury protection is required by law. We also collect the rates for medical payment coverage in Florida, Kansas and Massachusetts. In conclusion, Personal Injury Protection (PIP) is an important type of insurance that provides financial protection in case of an accident. It pays for medical expenses and lost wages when you or your passengers are injured in a car accident regardless of who is at fault. It's important to understand what type of coverage is available in your state so that you can make an informed decision about what type of policy best suits your needs.