What PIP Means in Insurance
PIP is short for personal injury protection, which is a type of auto insurance coverage that pays for medical bills and some related expenses that are the result of a car accident.
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Function
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Personal injury protection insurance pays for your medical bills up to a specified limit, regardless of who is at fault in an accident. PIP coverage varies by state, but in addition to medical expenses, it commonly covers lost wages, rehabilitation and funeral costs.
Misconceptions
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There is a common misconception among drivers that PIP is always optional. In 15 states, personal injury protection is required by law. In other states, it may be waived if you can prove you have health insurance.
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Considerations
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Personal injury protection covers not only you and the passengers in your vehicle, but also yourself and your family members while riding in someone else's vehicle. If you often have passengers or do a significant amount of travel by car, it may be prudent to carry a high amount of PIP coverage.
Benefits
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If you or any of your family members are without health insurance, carrying PIP on your auto insurance policy can help prevent the unexpected financial burden of medical bills resulting from a car accident.
Significance
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Personal injury protection exists partly as a means to avoid unnecessary accident litigation. Injured parties with medical bills are able to tap into their own coverage, which easily covers most minor injuries and allows for faster processing of claims.
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