by renditioner » Thu Aug 14, 2008 06:30 am
Personal injury protection (PIP) insurance is a measure you can take to cover for the medical bills you would have to pay in case you suffer any injury in an accident regardless of who is at fault. Accidents can be very taxing, painful in the body as well as to the pocket. If you have personal injury protection, you can stop worrying about any medical bills.
What does PIP cover?
Personal injury protection insurance covers the charge accrued in case of an emergency situation and simultaneous health care treatment when an accident occurs. This coverage protects the driver and the passengers of the driver's car. PIP insurance covers the policyholder, his family member and relations that he has named, the passengers in his car, permitted drivers and in some cases and specific states, any insured individual who gets injured while riding in the car. A pedestrian who gets hit by the vehicle is also covered under this policy.
PIP also provides coverage for lost wages and damages caused due to pain and suffering. You can receive payouts up to the maximum limits of the plan.
With PIP you can cover the cost of:
PIP also provides coverage for lost wages and damages caused due to pain and suffering. You can receive payouts up to the maximum limits of the plan.
With PIP you can cover the cost of:
- Medical costs
- Transportation in case of medical emergency
- Lost wage
- Death by accident
- Funeral and burial expenses
- Benefits to survivor
- Costs of childcare while you or a passenger in your is being treated in the hospital
- Loss of companionship (conditions apply)
How much does personal injury protection pay?
PIP can give you a payout of up to its maximum limit. However, usually there is a cap to the amount paid out under PIP and this level varies from one state to another. While on some states the coverage is considerably lower than what it costs for repair and the medical bills, the policyholders or motorists are asked to purchase additional insurance. These additional insurance includes bodily injury protection, uninsured and underinsure motorist coverage. Many mistake PIP and bodily injury to be the same. However, there are differences between PIP and Bodily Injury coverage.
Why would you purchase personal injury protection?
Having personal injury protection means that you can do away with the need to file a lawsuit since it functions regardless of who is at fault. In no-fault states requiring PIP, the drivers are not allowed to sue anyone for damages. They have to make a claim with their own insurance company. They can only pursue damages from another driver at fault if the damages incurred reach a set limit. In case of a death or very serious injuries, the injured party can sue the other driver and can receive payouts beyond the PIP payout cap.
Which are the states where PIP is mandatory?
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
- Pennsylvania
- Utah
- Texas
PIP is mandatory in few states and in others it is offered as a choice. It depends on your state's auto insurance laws whether you are required to purchase PIP coverage.
Related Discussions:
Hello people ,I am in a predicament now.Imagine I have a Personal Injury protection and I had an accident while travelling in a car with 4 other people. That's why I need to ask- what does pip cover ?? Will it cover the medical expenses for all the people,who were in the vehicle at the time of the accident? or is it just me?Do the other people also need to have a policy similar to the one I have or any other policy to cover their medical bills ?
Posted: Tue Aug 11, 2009 09:07 pm Post Subject:
In Florida, if a person needs transportation to & from his doctor visits (treatment is for injuries from an auto accident) does auto insurance pay a benefit for transportation?
I'm 99% sure that this is covered under Fl PIP. I'm not sure if it's paid at 80% or 100% (its been awhile). I'm pretty sure its only limited to "reasonable" expense. So taking a limo to the doctors is probably not going to be paid in full.Taking a cab or something like that is probably fine. A friend charging a nominal fee or about the same as a cab would probably be okay as well.
Posted: Wed Aug 12, 2009 07:10 pm Post Subject: Hitting someone without PIP coverage
What happens in the event I, who has PIP coverage, hit & injure a motorist in a motor vehicle that does not have PIP coverage? Does my liability kick in & cover them and what happens since they are non compliant with the law regards to having PIP coverage
Posted: Wed Aug 12, 2009 07:33 pm Post Subject:
What happens in the event I, who has PIP coverage, hit & injure a motorist in a motor vehicle that does not have PIP coverage? Does my liability kick in & cover them and what happens since they are non compliant with the law regards to having PIP coverage
That depends on your states PIP and injury laws. Each state is different.Posted: Wed Aug 12, 2009 07:52 pm Post Subject:
State of Florida. I'm taking a general lines online course & they have me stumped on how they're wording this example: "If the insured motorist caused injuries to a motor vehicle owner who had not insured, the PIP is "payable" although not paid by an insurance company, & the insured motorist has the same exemption as though the uninsured motorist has PIP." I understand the last part but the part about PIP being payable but not by an insurance co, has me stumped.
Thanks in advance, alaina
Posted: Wed Aug 12, 2009 08:06 pm Post Subject:
State of Florida. I'm taking a general lines online course & they have me stumped on how they're wording this example: "If the insured motorist caused injuries to a motor vehicle owner who had not insured, the PIP is "payable" although not paid by an insurance company, & the insured motorist has the same exemption as though the uninsured motorist has PIP." I understand the last part but the part about PIP being payable but not by an insurance co, has me stumped.
I've had this come up many times....BI (liability) is offset by what PIP pays... or _should_ pay_. if the vehicle is required to carry PIP then it does not matter to the at fault party that they don't have PIP... the liability carrier _still_ takes up to a $10,000 off set as PIP is non-recoverable in Florida. That is why they say its "payable"... it does not matter that is not "paid"... the BI carrier still takes an offset on what PIP would have paid if the person had it.
Posted: Wed Aug 12, 2009 08:20 pm Post Subject:
Why does it say " although NOT paid by an insurance company?? thats what doesnt make sense me..
Posted: Wed Aug 12, 2009 08:31 pm Post Subject:
It means that the injured person should still be considered as collecting the PIP payment even though their carrier did not pay it. That is, the BI carrier should pretend that it was paid, even though it was not.
If the person has $5000 in medical expenses, the BI carrier considers that the injured person was paid $5000 by the PIP carrier... even though it was not paid.
Posted: Wed Aug 12, 2009 08:43 pm Post Subject:
I think i get it LOL.. so the injured person gets nothing for either carriers unless the at-fault person was found legally liable?
Posted: Wed Aug 12, 2009 08:43 pm Post Subject:
I think i get it LOL.. so the injured person gets nothing for either carriers unless the at-fault person was found legally liable?
Posted: Wed Aug 12, 2009 09:07 pm Post Subject:
I think i get it LOL.. so the injured person gets nothing for either carriers unless the at-fault person was found legally liable?
That is always the case. That does not have to do with the statement you mentioned.I can break it down a little more....
$10k PIP is required on all vehicles being operated in FL. If the person is injured in an auto accident, their own PIP carrier is required to pay for their insured's injuries up to the $10k amount. The PIP carrier _cannot_ collect this money back from the at fault parties carrier (remember that). The carrier for the at fault party needs to address the injured parties loss (medical bills and pain and suffering). Let's say the injured person had $20k in medical bills and a fair settlement is $10k on top of the medical bills. The PIP carrier paid $10k of the $20k medical bills so the BI carrier only owes $10k in medical bills plus another $10k for a total of $20k. That is, they took an offset of of $10k (what the PIP carrier paid) on the $20k in medical bills. That is, since the PIP carrier paid those bills and the PIP carrier can't recovery that money, the BI carrier does not owe that $10k that the PIP carrier paid.
Now, let's say the person did not have insurance so they don't have any PIP coverage. This does not matter. The PIP laws state if a person is _required_ to carry PIP that the at fault party has immunity for what the PIP carrier _should_ be paying. It does not matter if there was no payment by a PIP carrier, that $10k is still not owed by the at fault carrier. So the BI carrier still pays $20k on the injured parties $30k claim.
As long as the at fault party carries PIP, they still get the tort immunity that the PIP laws provides them. This immunity is the $10k that the injured parties PIP carrier _should_ pay. That tort immunity exists _even if there is no PIP carrier to pay_. So the at fault party still gets the immunity even if there is no PIP payment.
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