Have you ever heard of PIP? For those unfamiliar, we will give you the full name of this form of coverage. Personal insurance protection is an extension of an auto insurance policy that is optional coverage in some states, required coverage in others, and is not available in other states.
What is?
PIP or Personal Insurance Protection is medical insurance that protects you or your passengers if there is an injury from a car accident. If you have purchased it, PIP will cover medical expenses and more, even if you are responsible for the accident or collision.
Understandably, the coverage is also known as “no-fault insurance” because the nature of the coverage does not depend on liability.
Of course, in states like New Jersey, New York, Pennsylvania, and Florida, where Personal Insurance Protection is required, drivers only need to obtain a minimum amount of required coverage.
This is where insurance professionals put their advice.
“Don’t get the minimum amount of PIP coverage,” they say. “Even if you find your overall auto insurance premium is increasing because of our recommendation of at least $250,000 in associated coverage, you’ll be grateful if the need arises.”
The following example from a policyholder illustrates the truth of the statement.
One man didn’t like the fact that his car insurance would increase with the purchase of $250,000 in PIP, so he decided to keep the status quo of $15,000 in related PIP coverage and no increase in total car premium.
But luck was not on his side in this case.
After being in an accident and staying in the hospital for two days, the associated bill was over $45,000!
This was a tough lesson, which encouraged him to apply for additional PIP coverage as recommended by his agency.
“Like me,” he said, “most people don’t understand how important an adequate amount of health-related coverage is to vehicle protection. I learned the hard way that it pays to listen to professionals who understand the impact of an accident – something that can happen at any given time at any time.”
Personal Insurance Protection can provide the following coverage after a collision that may result in injury.
• Medical costs, rehabilitation costs, ambulance, drugs, durable medical equipment
• Loss of wages if applicable
• Substitution of notification by the injured party, if applicable.
• Funeral expenses if the injury leads to death and if applicable in coverage.
To learn more about this important coverage, talk to the experienced professionals.