Typical Personal Injury Coverage in Auto Insurance
Personal injury coverage, when offered through a car insurance policy, pays medical expenses and, if necessary, funeral expenses that result from an auto accident. It is also known as personal injury protection.
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Benefits
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Personal injury coverage through a car insurance policy can act as a supplement to any life or health insurance, thus further sparing loved ones the financial strain of providing medical treatment or paying for a end-of-life expenses.
If a person cannot afford life or health insurance, personal injury insurance through an auto insurance policy at least provides limited coverage with only a slight increase in monthly car insurance payments. Personal injury coverage generally is not contingent on whose fault the accident is, so payments are rendered quickly, according to DMV.org's "Personal Injury Protection."
Who is covered
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As DMV.org explains, personal injury coverage generally covers the policy holder and any passengers in his vehicle. If injuries result from an accident in someone's else's vehicle, the policy holder and his family members are covered. These policies generally do not cover injuries incurred with recreational vehicles, motorcycles or farming equipment, or injuries that are related to the commission of felonies, according to DMV.org.
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What is covered
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Personal injury insurance covers, on average, about 80 percent of any medical bills associated with auto-accident injuries, lost wages due to an inability to work, funeral expenses and the cost of rehabilitation. The amount of coverage varies among policies, however.
Insurance requirements
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Personal injury insurance is required for drivers in some states but optional in others. Some states don't even offer it. States that require personal injury insurance as of 2010 include: Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas and Utah.
When it isn't needed
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If a person has a good health and life insurance plan, adding personal injury insurance onto the car insurance policy may not be necessary, according to Edmunds.com's "How Much Auto Insurance Do You Need?" It will be necessary to do some research in order to find the balance between insurance that you can afford and insurance that you need without overpaying.
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References
- Photo Credit car image by red2000 from Fotolia.com
