When you get involved in a car or vehicular accident, what follows is a series of expenses that you may not be able to handle from your own pocket. Aside from repairs of your car, you will also be faced with medical expenses and other bills. For this reason, having personal injury protection (PIP) can be heaven sent. PIP is also called “no-fault” insurance and is usually require in no-fault states.
According to the website Schuler, Halvorson, Weisser, Zoeller & Overbeck, P.A., state laws require motorists to carry at least a minimum PIP insurance coverage. This kind of policy shoulders accident-related expenses regardless of who was at-fault. Personal injury protection may cover as much as 80% of medical and other expenses, depending on the limits of the policy.
PIP covers medical expenses that you might incur whether as a passenger or as a pedestrian. In addition, it may also pay for service replacement of an injured person, rehabilitation, and funeral costs. With personal injury protection, there is no need to determine fault. The damages are paid at the soonest time possible and you only deal with the insurance carrier.
PIP has some similarities and difference with medical payments coverage. Both covers your medical costs as well as that of your passengers regardless of who was at-fault. However, medical payments coverage does not cover other expenses such as lost wages, rehabilitation expenses, and funeral costs.
However, one disadvantage of no-fault insurance is that it literally takes away your right to sue. While you can still make someone liable, some state laws determine when you can do so. For example, you can only sue unless one of the following happens:
Serious death or injury
Damages has reached or surpassed the threshold limit
If you have health insurance, you may combine it with personal injury protection. You can set your HMO as the main form of injury coverage after an accident. When you get hurt in a crash, your health benefits will cover your medical expenses. PIP will pay for expenses that exceeds your health insurance limits.