Is Personal Injury Coverage Needed on Car Insurance?
Personal injury protection, or "PIP," is supplemental coverage that handles medical expenses arising from an accident. Whether or not you need coverage depends on what medical coverage you already have and your ability to pay for out-of-pocket expenses after an accident.
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How Personal Injury Coverage Works
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PIP covers the medical expenses, hospital bills and, even, funeral costs of the driver within his policy limits. PIP coverage applies regardless of who is at fault, so if you cause an accident, PIP covers your expenses.
Who's Covered
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In addition to the driver, PIP also covers passengers in the driver's car and any individual the driver authorizes to drive his car.
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Out-of-Pocket Expenses
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If you aren't financially prepared to cover thousands of dollars in medical expenses, consider adding PIP coverage to your car insurance. Otherwise, you'll be responsible for both your medical expenses and those of your passengers.
Private Health Insurance vs. Personal Injury Coverage
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If you have health insurance through your employer or state, this covers accident-related medical expenses. You're still responsible for your co-pays.
State-Mandated Personal Injury Coverage
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Personal injury coverage is required in Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah and Texas. If you reside in one of these states, the state can fine or penalize you for not carrying PIP coverage on your car insurance.
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