Personal Injury Protection: What It Does For You
Personal injury protection or PIP is an important type of insurance policy. Many people seem to be opting for it these days. What PIP does for you is just like what your doctor might do for you – he nurses you until you are fit and healthy. PIP goes one-step ahead – it pays your medical bills, something that your doctor will not do!
PIP is an element that comes under the general category of automobile insurance. A sound policy for your vehicle must include the following: personal property liability, bodily injury liability, personal injury protection, uninsured motorist coverage and collision coverage. Some of these elements could be optional, while some have been deemed as compulsory by the state. For instance, collision coverage covers the damage that the vehicle may suffer in event of a collision, irrespective of the fact that the driver may very well be the cause behind such a collision. Another form of coverage protects the owner of the automobile owner in events of robbery, vandalism or any acts of nature beyond the control of the owner. It goes without saying that both these plans cost a fortune.
However, the bodily injury and the personal property liabilities have been mandated by all the states in the USA. In the USA, the states vary largely in the least guaranteed payout that is set for each. For instance, in the state of Alaska, a driver is obligated to carry coverage that has a definite minimum bodily injury payout of $100,000. In the state of Florida, a driver requires a payout of only $10,000.
Another element of an automobile insurance policy is the uninsured motorist coverage. This protects the automobile owner in event of an accident with a vehicle that has not been insured. It will cover the expenditure that would otherwise have been paid for by the other driver involved in the accident. The PIP in the event of an accident, cover the medical expenses and other expenditures of a miscellaneous nature. This coverage is provided even when the damage is incurred by the policyholder or his passengers or even in case of an injured pedestrian. The following states have made PIP mandatory are Colorado, Florida, Delaware, Kansas, Hawaii, New Jersey, Kentucky, Oregon, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota, and Utah.
Who can apply for a PIP? A PIP is mandatory only in certain states. In some states, it is optional. Even if it is optional, purchasing one is always a wise idea. In the event of an accident, the PIP will cover roughly 80% of the expenses that would otherwise have been payable by the policyholder and his passengers. The medical bills, lost wages and other assorted expenses are included in the coverage. PIP is a no-fault policy, which means that it will provide you with protection even if you were the one to cause an accident!
PIP is also referred to as Medical Payment Insurance or Medpay. The policy has been made no-fault and that is just the reason as to why you must think of investing in one. The fault in case of an accident need not be ascertained in order to make a claim under the PIP policy. This means that the medical payments reach the injured in good time. Secondly, the PIP saves you the cost of a lawsuit to prove the responsibility in event of an accident. However, if the bodily injury is of a very serious type of it results in death, then the PIP may require a lawsuit to be filed.
Before you invest in PIP, you might want to read your health insurance plan carefully in order to determine whether your medical bills and lost wages are being covered. If you are already being covered in o\both of these areas, then purchasing a PIP would only be a waste of money. Think carefully about your driving habits. Are you a rash driver? Do you carry passenger often? Accordingly you may purchase a PIP policy. If you ferry family regularly, then the chances of them being covered in your health plan are fairly high. However, if your passengers include non-family members, you might want to ask them what sort of coverage they hold. After all, the safety of passengers who travel in your car is your responsibility.