Has PIP ever come up? We’ll tell you the full name of this type of coverage for those who aren’t familiar with it. An addition to an auto insurance policy known as Personal Insurance Protection is not available in some states, is required in others, and is available in some only as an optional coverage.
It is what?
If you or your passengers are hurt in a car accident, PIP, or Personal Insurance Protection, is a type of medical insurance that will cover the costs of treatment. Even if you are at fault for the collision or accident, PIP will cover medical expenses and more if you have purchased it.
Given that the coverage is not liability-based, it makes sense that it is also referred to as “no-fault insurance.”
Of course, drivers only need to purchase the minimum amount of coverage in states where Personal Insurance Protection is required, such as New Jersey, New York, Pennsylvania, and Florida.
Here is where the insurance industry experts offer their counsel.
Don’t purchase the bare minimum of PIP coverage, they advise. You’ll be grateful if the need arises, even if our recommendation of at least $250,000 in the related coverage results in a rise in your overall auto insurance premium.
The claim’s veracity is demonstrated by the following case study of a policyholder.
A man decided to maintain the status quo of $15,000 in related PIP coverage and no increase in overall auto premium because he did not like the idea that his car insurance would rise with the purchase of $250,000 in PIP.
But in this instance, luck was not on his side.
The associated bill after being involved in an accident and spending two days in the hospital was over $45,000!
This was a difficult lesson to learn, and it motivated him to request more PIP insurance as advised by his agency.
“Like me, the majority of people don’t realize the significance of having sufficient health coverage in terms of vehicle protection, he continued. I discovered the hard way that it pays to pay attention to experts who are aware of the effects of accidents, which can happen at any time and for any reason.”
Following a collision with the potential for injuries, Personal Insurance Protection may offer the following coverage.
• Medical expenses, rehabilitation expenses, ambulance costs, drug costs, and durable medical equipment
• Wage loss, if applicable
• If necessary, substitute service provided by the injured party
• Funeral expenses, if applicable, in the event that an injury results in death.
Speak with the knowledgeable experts for more details on this crucial coverage.