PIP Auto Insurance Definition, Do You Need It And How To Claim It?

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PIP Auto Insurance, or personal injury protection, is a type of car insurance that pays for your medical expenses, lost wages, and other related costs if you’re injured in a car accident, regardless of who is at fault. PIP auto insurance can also cover your passengers and anyone else authorized to drive your car. Here are some of the main features and benefits of PIP auto insurance.

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What is PIP auto insurance?

PIP auto insurance is an optional or mandatory coverage that you can buy as part of your car insurance policy. It covers the following expenses if you’re hurt in a car accident:

  • Medical bills, such as ambulance fees, hospital stays, surgery, medication, rehabilitation, and dental care
  • Lost income, such as wages, salaries, tips, commissions, and benefits that you can’t earn because of your injuries
  • Replacement services, such as childcare, housekeeping, and lawn care that you can’t perform because of your injuries
  • Funeral expenses and survivor benefits, such as burial costs and income loss for your dependents if you die because of your injuries

It does not cover:

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  • Damage to your car or another person’s car
  • Injuries to another person or their passengers
  • Injuries that are not related to a car accident, such as illness or crime
  • Injuries that are caused by intentional or fraudulent acts

If you want coverage for these situations, you’ll need other types of car insurance, such as:

  • Collision insurance: This covers the damage to your car if it’s involved in a collision with another vehicle or object
  • Comprehensive insurance: This covers the damage to your car caused by something other than a collision, such as theft, fire, vandalism, hail, flood, or animal collision
  • Liability insurance: This covers the damage and injuries that you cause to others in an accident. It’s required by law in most states
  • Uninsured/underinsured motorist insurance: This covers the damage and injuries caused by a driver who has no insurance or not enough insurance to pay for your losses. It’s optional in most states but required in some

How does PIP auto insurance work?

PIP auto insurance works by reimbursing you for the expenses that you incur because of a car accident injury, up to your policy limit. Your policy limit is the maximum amount that your insurance will pay for a claim. You can choose your policy limit when you buy PIP auto insurance. Typically, the higher your policy limit, the higher your premium (the amount you pay for your insurance).

PIP auto insurance may also have a deductible and a copayment. A deductible is the amount of money that you have to pay out of pocket before your insurance kicks in. A co-payment is the percentage of the claim that you have to pay after meeting your deductible.

For example, if you have a $500 deductible and a 20% copayment and your claim is $5,000, you’ll pay $500 + 20% x ($5,000 – $500) = $1,400 and your insurance will pay $3,600.

PIP insurance pays for your expenses regardless of who is at fault for the accident. This means that you don’t have to wait for the other driver’s insurance to pay for your losses or prove that they were responsible for the accident. However, this also means that you may have limited or no right to sue the other driver for additional damages.

What are the pros and cons of PIP auto insurance?

PIP insurance has some advantages and disadvantages that you should consider before buying it. Here are some of them:

Pros:

  • It can cover your medical expenses and lost income that may not be covered by your health insurance or disability insurance
  • It can pay for your expenses quickly and easily without having to deal with the other driver’s insurance or the legal system
  • It can protect you and your passengers from uninsured or underinsured drivers who may not be able to pay for your losses
  • It can give you peace of mind if you drive frequently or in high-risk areas where accidents are more likely to happen

Cons:

  • It can be expensive to buy and maintain
  • It may not be worth it if you have adequate health insurance and disability insurance that covers most of your expenses
  • It may not cover the full cost of your expenses if they exceed your policy limit
  • It may not be necessary if you live in a state that does not require it or allow you to sue the other driver for additional damages

Who should consider PIP auto insurance?

PIP may be a good option for you if:

  • You want to protect yourself and your passengers from the financial impact of a car accident injury
  • You have limited or no health insurance or disability insurance that covers your medical expenses and lost income
  • You drive frequently or in high-risk areas where accidents are more likely to happen
  • You live in a state that requires or allows PIP auto insurance

PIP auto insurance may not be suitable for you if:

  • You want to save money on your car insurance premiums and fees
  • You have sufficient health insurance and disability insurance that cover most of your expenses
  • You drive rarely or in low-risk areas where accidents are less likely to happen
  • You live in a state that does not require or allow PIP auto insurance

How to choose PIP auto insurance?

If you decide that PIP auto insurance is right for you, you should compare different PIP auto insurance plans based on several factors, such as:

  • The cost and coverage of the premiums, deductibles, copayments, limits, and other fees
  • The reputation and customer service of the insurance company
  • The ease and speed of filing and processing claims
  • The discounts and incentives offered by the insurance company

You can find and compare different PIP auto insurance plans on the internet, by contacting insurance agents or brokers, or by asking for recommendations from friends or family. You should also check the ratings and reviews of the insurance companies and their plans from independent sources, such as consumer reports, online forums, or government agencies.

PIP auto insurance is a type of car insurance that can help you pay for your medical expenses, lost wages, and other related costs if you’re injured in a car accident. It’s usually optional but required in some states. However, you should also weigh the pros and cons of PIP auto insurance and consider your needs and budget before buying it.

Frequently Asked Questions (F&Qs)

What is PIP car insurance in Florida?

In Florida, PIP coverage is required by law. The minimum PIP coverage in Florida is $10,000 per person, and you can also choose to purchase higher limits of coverage.

What is a PIP application?

A PIP application, or Personal Injury Protection application, is a form that you must fill out if you are injured in a car accident. The PIP application is used to document your injuries and expenses so that your insurance company can determine whether or not you are eligible for PIP benefits.

How much does PIP pay you?

The amount of coverage varies depending on the state and the policy. For example, in Texas, companies must provide $2,500 per person in coverage unless it is rejected in writing.

Who is eligible for PIP?

The eligibility requirements for PIP vary from state to state, but generally speaking, you must be:

  • A resident of the state where PIP is required.
  • The policyholder or a named insured on the policy.
  • Injured in a car accident.
  • Seeking medical treatment for your injuries.
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