What Does PIP Insurance Cover?


In so-called "no-fault" states, you must purchase personal injury protection, or PIP insurance. There are 12 such states plus the District of Columbia that fall into the category. Those jurisdictions passed "no-fault" legislation that limited the right of drivers to sue each other, and required drivers to have PIP insurance that would pay your and the other driver's medical expenses, regardless of who was at fault.


States adopted various forms of "no-fault" legislation to make it unnecessary for one driver to sue the other for costs associated with injuries. However, many states had second thoughts about doing away with a person's right to sue another for damages, so many went halfway in embracing the concept. For that reason, understand the laws of your state before you purchase automobile insurance.


PIP insurance provides more than just coverage for bodily injury. If you miss work because of an accident, a PIP policy will also pay a percentage of your lost wages. In addition, it will reimburse you for other costs like lawn maintenance, extraordinary household costs and mileage incurred while seeking medical help.


As stated earlier, a big portion of your lost wages will be paid through your PIP policy. Simply supply the insurance company with verification of your condition from your doctor, and you will soon begin receiving checks. However, your PIP reimburses you with only a portion of those lost wages, so you must look to the other driver's coverage for the balance if you are not at fault.


The District of Columbia and the following twelve states have adopted some form of "no-fault" automobile insurance laws: Florida, Kentucky, Kansas, Hawaii, Michigan, Massachusetts, New Jersey, Minnesota, New York, Pennsylvania, Utah and North Dakota. Each has written different laws, so it is incumbent on you to know the laws before buying insurance.


Besides being required to purchase PIP insurance in "no-fault" states, you must also buy Personal Damage Liability Insurance to cover the other driver's automobile. In addition, since your car will not be covered, it may be wise for you to have collision insurance, along with coverage for bodily damage to someone riding with the other driver. Each state has a minimum amount of coverage you must have. On balance, people who live in "no-fault" states pay more for their insurance than those in other states.

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