When you’re in a car accident, the last thing you want to worry about is how to pay for your medical bills. Personal Injury Protection (PIP) insurance is designed to help with that. It’s often called “no-fault insurance” because it covers medical expenses no matter who caused the accident. However, PIP insurance does not cover serious injury expenses, which is why understanding its limits is very important.
What Is Personal Injury Protection (PIP)?
Personal injury protection (PIP) is a type of insurance that can be added to your auto insurance policy to help you pay for:
- Lost wages
- Medical expenses
- Funeral expenses
- Loss of services
It typically covers you and your passengers if you’re involved in a car accident, even if you were at fault. Personal injury protection insurance is required in some states, optional in others, and not available at all in certain states.
How Does Personal Injury Protection Work?
Different states have different auto insurance requirements. In no-fault insurance states, you are required to have PIP coverage, which typically pays for medical care and other expenses, regardless of who’s at fault. This means that you can still get compensated for your losses even if the at-fault driver doesn’t have insurance.
For example, say you live in a state where you’re required to have a minimum PIP policy of $15,000. If you’re involved in an accident that resulted in injuries worth $20,000, then your PIP would cover $15,000. If you bought a plan with higher coverage, your insurance would cover expenses up to that limit.
That said, PIP auto insurance is required in 15 states, including Puerto Rico. Each state decides the minimum coverage you need, and these requirements can differ from one state to another. Insurance companies also set the maximum coverage you can buy, which varies from one company to another, but it’s usually limited to $25,000.
Who Is Covered by PIP Insurance?
PIP insurance will generally cover:
- You, the Policyholder: PIP covers your medical expenses and other benefits if you’re injured in a car accident, no matter who caused it.
- Passengers in Your Car: Anyone riding in your vehicle at the time of the accident is generally covered by your PIP policy.
- Other Drivers on Your Policy: If your policy includes other drivers, they may also be covered when they drive your car.
- Family Members in Your Household: In some cases, family members living with you are covered, even if they’re passengers in another vehicle or pedestrians.
- Pedestrians and Cyclists: If you hit a pedestrian or cyclist, your PIP may help cover their medical expenses as well.
Who Is NOT covered by PIP Insurance?
PIP insurance typically doesn’t cover drivers who don’t have the vehicle owner’s permission to drive it, even if they live in the same household. It also doesn’t cover drivers of other vehicles involved in the accident.
What Does PIP Insurance Cover?
Personal injury protection coverage takes care of medical expenses for anyone covered in the policy. In some states, it can also cover non-medical damages, such as:
- Lost wages if you or your passengers are injured and unable to work
- Household services like childcare, cleaning, or yard work
- Payments for disability and rehabilitation costs
- Death benefit provided to your family in the event of a fatal car accident
What Isn’t Covered by PIP Insurance?
No-fault insurance doesn’t cover expenses that are not related to personal injuries, such as:
- Damage to your vehicle: To protect your car against damage, you’ll need to add comprehensive insurance and collision coverage to your policy.
- Theft of your vehicle: If you have comprehensive coverage, your insurance can help repair or replace your car if it’s stolen.
- Damage to someone’s property: If you’re at fault in an accident, property damage liability coverage can help pay for repairs on someone else’s vehicle or property.
PIP insurance also doesn’t cover:
- Serious injuries beyond policy limits: If medical costs exceed your PIP coverage limit, you’ll need to rely on health insurance or other sources.
- Intentional acts: Injuries caused on purpose, such as during a crime or fraud, are not covered.
- Pain and suffering: Compensation for emotional distress or pain and suffering isn’t included under PIP.
How do You File a Personal Injury Protection Insurance Claim?
Filing a Personal Injury Protection (PIP) claim doesn’t have to be hard. You just need to know what steps to take and when.
Step 1: Gather Your Documentation
First, you need to gather all the necessary documents. These include the following:
- Accident report: A copy of the police report or accident report detailing the incident
- Insurance policy information: Your policy number and any related details to verify coverage
- Medical records: Documentation of your injuries, treatments, and doctor visits, including medical bills
- Proof of lost wages: Employer statements or pay stubs showing missed work and lost income due to the accident
- Receipts for expenses: Proof of costs related to the accident, like transportation to medical appointments or childcare
- Identity verification: A government-issued ID, such as a driver’s license or passport
- Claim form: A completed PIP claim form provided by your insurance company
- Witness information: Names and contact details of any witnesses to the accident, if applicable
Step 2: Contact Your Insurance Company
Once you’re done with the paperwork, the next step is to contact your insurance company. They will ask for the documents above and might ask a few questions about the accident. You should be prepared to answer the questions. Remember to only stick to the facts and avoid over-explaining yourself.
After submitting everything needed, they will likely give you a timeline or additional steps required from there. The whole process might feel overwhelming at first, but taking these steps seriously can make it much easier.
Handle Your PIP Claim with Confidence
Understanding what PIP covers and how it works can save you time, money, and stress after an accident. While it might not cover everything, PIP provides essential support for medical costs and lost income. Always review your policy to ensure you have the right amount of coverage for your needs.