Personal injury protection (PIP), which is also called “no-fault insurance,” covers medical bills and related costs resulting from an accident, no matter who caused it. It is a component of an automobile insurance plan that covers the healthcare expenses associated with a car accident. <\/p>
PIP covers medical expenses for both injured policyholders and passengers, even if some don\u2019t have health insurance. It is required in some states as part of \u201cno-fault auto insurance\u201d laws that restrict your ability to sue for car crash injuries. If PIP is optional coverage in your state, it can still be a valuable part of a car insurance policy.<\/p>
It may overlap with your health or MedPay insurance, but there are times when multiple policies are recommended.<\/p>
Personal injury protection, also known as “no-fault insurance,” pays the medical bills and rehabilitative costs for you and your passengers after you’re injured in a car accident. PIP also extends to instances when you’re a passenger in someone else’s car, or if you’re hit by a car while a pedestrian or cyclist.<\/p>
PIP insurance is different than bodily injury liability insurance in that, while PIP coverage pays for your own expenses, liability insurance pays for the medical expenses of drivers and passengers in other cars when you are at fault for an accident.<\/p>
This insurance may include some of the same coverage as your health insurance or Medical Payments policy. However, PIP coverage is specifically written for car-related injuries, which are sometimes excluded from health insurance policies, and PIP insurance covers a number of additional expenses not covered by MedPay insurance.<\/p>
Auto insurance requirements and features differ from state to state, and PIP coverage is available primarily in no-fault states. In a no-fault state, if a policyholder is injured in a car crash, that person’s policy pays for the holder\u2019s medical care regardless of who caused the accident. <\/p>
Policyholders with PIP coverage can receive benefits even if the other driver doesn\u2019t have insurance.<\/p>
PIP insurance is sometimes called “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 \u2014 even if another driver caused the accident \u2014 unless a certain threshold is met. <\/p>
These thresholds, called “tort thresholds,” may be either monetary or verbal, depending on your state.<\/p>
Monetary thresholds require medical expenses for an individual or accident to exceed a state-designated amount before you can sue another driver. Verbal thresholds specify a certain type of injury that must be met before you file a lawsuit. Although the language varies by state, verbal thresholds typically say an individual must have sustained significant and permanent loss of bodily function, injury or disfigurement, or death. <\/p>
Other variables, such as if a driver was under the influence of drugs or alcohol, can also change how tort thresholds are applied.<\/p>
In addition to the 12 no-fault states, four fault-based states also require PIP coverage. Other states allow you to purchase it as optional coverage. <\/p>
PIP insurance generally covers:<\/p>
A goal of PIP is to provide prompt payment for car accident injuries. Because PIP claims are paid regardless of who caused the accident, there\u2019s no waiting around for a liability lawsuit against someone else to be resolved.<\/p>
PIP insurance does not cover:<\/p>
If you’re injured by another driver and have personal injury protection as part of your car insurance policy, you would typically exhaust your PIP coverage first before turning to other options. If your medical costs exceed your policy’s limits, you can then file a claim under the other driver’s liability insurance policy. <\/p>
However, if you are significantly and permanently injured, or if your medical bills exceed your state’s tort threshold, you may bypass your PIP coverage and file a lawsuit against the other driver.<\/p>
Personal injury protection is not the same as liability insurance. <\/p>
With PIP, medical costs are covered for the policyholders and anyone in their vehicle at the time of the incident, no matter who is at fault. However, with liability insurance, medical costs are covered for the third party, not the policyholder, if it is determined that the policyholder is at fault.<\/p>