Explain PIP Insurance
PIP insurance stands for "personal injury protection" insurance. Also commonly called no-fault insurance, PIP covers the insured and depending on the coverage, may also cover others in the vehicle who are injured as a result of a car accident.
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Claim Submission
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Since PIP insurance is not dependent on who is at fault in the accident, the claim for lost wages and medical bills must first be submitted to the insured's insurance company. The insured's insurance company pays a percentage of lost wages and medical expenses.
Limitations
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PIP insurance pays just 80 percent of the insured's medical bills. Since medical bills can be expensive, some opt to purchase additional insurance to cover the medical bills not covered by PIP. PIP insurance also typically has a $2,000 deductible.
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Additional Coverage
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In addition to covering the cost of medical bills, PIP insurance may also cover the cost of lawn care and other practical necessities such as housekeeping, which cannot be done by the injured person.
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References
- Photo Credit car crash image by dawn from Fotolia.com
