Medical Payments, No Fault and Personal Injury Protection (PIP)

You might have gotten a bit confused after reading such long headline, but it’s not so complicated at all. Basically, this coverage (which may vary by insurance company and it might have a slightly different name or a combination of two of the ones included here) it’s pretty easy to understand and it’s very convenient to have as part of the car insurance policy. When it comes to car insurance it’s always better to be safe than sorry. Coverage such as this one, are a great way to have continuous peace of mind, in and out of the road.
To better understand this option of coverage, let’s take a look at each term separately.

What is this coverage about?

As a whole, this part of the car insurance policy pays for the medical expenses of you and/or your passengers after a car accident. This coverage also includes payment for medical bills if you’re driving someone else’s car or if you are injured in an accident while you’re a pedestrian.

Medical Payments

This type of coverage is absolutely indispensable as part of your car insurance policy. It pays for the reasonable and necessary medical expenses of you and your passengers after an accident, regardless of who caused it. This coverage also pays for all funerary expenses, should anyone die as a result of the accident. Relatively inexpensive, this coverage will protect you even when you’re driving someone else’s car (with previous authorization), and also, like we mentioned before, if you or your family are hurt as a result of an accident while you’re pedestrians. You can choose the amount of coverage, which usually varies ranges from $1,000 to $100,000.

Personal Injury Protection

This coverage, known as PIP, could be described as a type of insurance that covers the insured —regardless of fault— in an incident that generates losses. This no-fault coverage is mandatory in many states of the country, which are commonly referred to as “no-fault states”. At its broadest, this coverage pays for all medical expenses of all the people in the car (and pedestrians, if involved) at the time of the incident, including, of course, the policyholder. Almost all insurance companies offer this type of coverage, as a way to reinforce the medical payments coverage.

The personal injury protection coverage might pay for expenses such as:

  • Reimbursement of additional services (daycare if one of the parents is temporarily disabled or hospitalized as a result of the accident.)
  • Lost wages (for medical disability)

This type of car insurance coverage varies according to the state you reside in. If your state is a no-fault state, this coverage is also available to drivers, but it’s not mandatory. In many cases the no-fault states limit the right to demand payment for no-monetary damages, such as physical and moral damages. But at the same time these states don’t limit the right to request payment in cases of disability or death. So, after you’ve learned all this, is important for you to consider that the medical payments and PIP coverage also protect the passengers on your vehicle. If the total expenses of the accident exceed the coverage limit established on your policy, you might need the bodily injury coverage.

It’s important for you to keep in mind that if you have good health and disability insurance, you may not need any additional coverage that surpasses the limits established by your state (if medical payment and PIP coverage is mandatory). The insurance policy with PIP coverage pays all hospital expenses (regardless if you have medical insurance), up to the limit established for each person under the coverage.

To look for quotes that include the medical payments, no-fault and personal injury protection coverage, just click here.