Auto Insurance: Why Personal Injury Protection?
Car Insurance to Cover Driver and Passenger Medical Expenses
Mar 26, 2009
Getting into an auto accident is no fun at all. Causing damage to one’s car by hitting a wall, running into a telephone pole, or striking a solid cement pillar in an underground parking lot can be equally discouraging.
If the driver and his or her passengers are injured and are suddenly saddled with medical expenses due to bodily injury, personal injury protection (PIP) auto insurance could help pay medical costs for everyone in the car at the time of the accident.
Auto Insurance: What Is Personal Injury Protection Coverage?
Personal injury protection (PIP) auto insurance helps to pay medical expenses for the driver and passengers in the event of an auto accident, regardless of fault. It is the no-fault nature of PIP that makes this auto insurance coverage different from other types of auto coverage.
In addition to medical expenses, PIP auto insurance coverage also helps to pay for dental expenses, lost wages, home upkeep expenses, ambulatory fees, and funeral expenses in the event of bodily injury due to an auto accident. In some states, PIP covers up to 80 percent of medical costs.
Auto Insurance: In What Situations Would Personal Injury Protection Come In Handy?
A driver doesn’t even need to be in his or her car to benefit from PIP auto insurance. For example, PIP coverage extends when an insured pedestrian is stuck by another vehicle.
And if a person is driving the car of a friend or relative, his or her PIP coverage may become an additional protection if the car owner’s PIP coverage is insufficient to cover medical costs.
Auto Insurance: If a Driver Already Has Health Insurance, Why Personal Injury Protection?
The benefits of PIP auto insurance are obvious for a driver if he or she is not covered under a health insurance plan. But what about drivers who already have health coverage? Does PIP coverage then become an unnecessary, redundant cost? Not exactly.
PIP auto insurance helps to cover bodily injury expenses not only for the driver, but also for passengers who may not be covered under their own health insurance policies.
And for passengers who do have health insurance, PIP auto coverage may help pay into bodily injury costs as well as other costs including lost wages, home landscaping and cleaning services, or in the worse case scenario, funeral services.
Auto Insurance: Is Personal Injury Protection Mandatory?
PIP auto insurance is generally an option in most states.
But according to the Insurance Information Institute, 12 U.S. states and Puerto Rico have codified no-fault auto insurance coverage into law: Florida, New York, New Jersey, Pennsylvania, Michigan, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, Utah, and North Dakota.
The reason behind these state laws is to reduce personal injury litigation. In states that enforce no-fault laws, drivers may sue for bodily injury only if the case meets certain preconditions (thresholds) that relate to the severity of injury.
Auto Insurance: Who Benefits from Personal Injury Protection Coverage?
Though optional in most states, PIP auto insurance provides an additional measure of medical expense coverage in certain circumstances. It is a no-fault auto coverage, meaning the driver is protected financially regardless of who is at fault.
Once drivers understand the purpose of personal injury protection auto insurance, how PIP coverage can help them financially in a variety of situations, and the benefits of PIP auto coverage, it is recommended that drivers carry at least some PIP auto insurance coverage on their auto policy.
See related articles, "Understanding Auto Insurance Terminology," "How to Find the Best Deal on Auto Insurance," and "Auto Insurance: Why Pay for Uninsured Coverage?"
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