About Personal Injury Protection Insurance
Injuries sustained in automobile accidents can be financially devastating if you do not have the right insurance coverage. Personal Injury Protection (PIP) insurance covers medical bills and other related expenses regardless of fault. Insurance premiums should not increase due to a PIP claim.
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What PIP covers
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PIP coverage is available with limits ranging from $1,500 to $250,000 depending on the injuries sustained and the state's insurance regulations. Coverage includes medical and funeral expenses of the insured and others in the vehicle, as well as any pedestrians who may have sustained injuries during the accident. Other benefits are lost wages and other damages, such as pain and suffering.
Mandatory PIP
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PIP coverage is mandatory in 16 states. Coverage and limits vary from state to state. Some medical treatments that may be acceptable in one state are not covered in another. Concurrent workers' compensation claims and PIP claims are allowed in some states.
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Subrogation
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In some states, if your insurance carrier pays your PIP claim, they are then allowed to recover losses from the liable party. This means that they will recover some of the loss from the claim paid. Subrogation helps keep the costs of insurance down.
Primary Coverage
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In an automobile accident, PIP is the primary coverage for medical expenses. PIP is designed to pay for immediate care needed after an accident. After you have exceeded your PIP limits, your health insurance coverage will begin paying for your health care.
Do You Need PIP?
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If you live in a mandatory PIP state, you must carry this coverage by law. In other states, if you have both MedPay and PIP, you may be duplicating coverage. MedPay and PIP cover the same things, but PIP has extended benefits. PIP has a 20 percent deductible. If you have health insurance and PIP is not required in your state, you may want to check with your insurance agent to see if this coverage would be beneficial to you.
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