Auto Insurance Definitions of Personal Injury Protection
Automobile policy coverage limits are usually split into first-party benefits and third-party benefits. Third-party benefits pay for damages to people outside of a policyholder's vehicle in the event of an at-fault accident. Personal injury protection pays first-party benefits, which take care of the policyholder and any passengers he might be carrying at the time of an accident, regardless of fault. There are many types of personal injury protection coverage, but their availability will vary from state to state.
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Medical Expenses
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Personal injury protection usually covers payments for a policyholder's injuries and the injuries of any passengers in his vehicle at the time of an accident. Such payments can include hospital stays, doctor visits and prescriptions. Depending on state law, a policy may provide medical expense coverage as a percentage of total payments made or as a specific dollar amount paid per person.
Income Loss Benefits
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If a policyholder or a passenger in his vehicle is hurt in an accident and cannot work as a result, income loss or wage loss benefits will compensate the individual for lost wages up to the limits specified in the personal injury protection portion of the auto insurance policy. The insurer will make payments for only as long as the policy provides, subject to the laws of the state in which the policy was issued.
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Essential Services
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Essential services or recovery services under personal injury protection will pay a set amount of money each week for hired help to assist with everyday activities that the policyholder or passenger is unable to perform on his own because of his injuries. Payments may cover reasonable expenses for snow removal, cooking, cleaning, lawn care and pet care.
Insurance companies usually provide this type of coverage on a reimbursement basis only. To receive the benefits, the insured must first pay for the services himself and then furnish the insurance adjuster with receipts.
Funeral Expenses
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In the event that the policyholder or a passenger in the policyholder's vehicle dies as the result of the auto accident, funeral expense coverage will pay a set amount toward the burial arrangements.
State-Specific Coverage
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In "no fault" states such as Florida and New York, personal injury protection coverage is mandatory for all auto insurance policies. In some states, however, personal injury protection is not available. Even states where it is available do not necessarily require auto insurers to provide every conceivable type of personal injury protection benefit.
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References
- Photo Credit Police officer at the scene of the Jeep and car road accident. image by Dragan Trifunovic from Fotolia.com
