What Is Personal Injury Protection?
Personal injury protection, or PIP, is included in many vehicle insurance policies. It covers various types of expenses incurred as the result of a motor vehicle accident, regardless of who was at fault.
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Health Insurance
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Personal injury protection functions partially as a health insurance policy for anyone injured in a motor vehicle accident who does not have health insurance.
Liability Prevention
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A driver who causes an accident--and is covered by personal injury protection--cannot be held liable for medical expenses for anyone else involved.
Method
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Each injured party is guaranteed up to the maximum coverage provided by the policy, typically 80 percent of the eligible medical costs. Usually a deductible is applied first.
Amount
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Since each person in the accident is covered when a driver carries personal injury protection, a policy providing $25,000, for instance, will pay up to that amount for each injured party.
Additional Coverage
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Personal injury protection also may cover lost wages, child care, disability, loss of enjoyment of life, and funeral expenses.
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References
Comments
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Joseph Doughty
Nov 01, 2009
Read your policy carefully. Many PIP plans in no-fault states, such as Colorado, have severe restrictions and do not cover lost wages, loss of enjoyment or pain and suffering.
