How to Use PIP Insurance for Auto Accident

Passengers can use personal injury protection for medical bills.

Personal injury protection is "no fault" insurance included on some automobile insurance policies. PIP covers medical bills and lost time from employment and does not require subrogation, or repayment, if you recover damages from the other driver. PIP has no deductible, the part you pay before the insurance pays. This coverage may be superior to your health insurance up to the policy limits. Some states such as Washington require that you decline PIP coverage in writing; otherwise, your automobile insurance policy provides it at your expense.

Difficulty:

Moderate

Instructions

1. Check the policy or ask the policyholder to check for personal injury protection coverage. PIP covers the named insured and family members in the household. It also covers pedestrians and non-family passengers if the vehicle involved in an accident has PIP coverage. If you are in a covered vehicle, you have insurance that covers your injuries and lost time.

2. Discuss your claim with the owner of the vehicle or the person who pays for the insurance so it does not appear that you are working against him. Ask for ideas and information you need, such as the company, policy number, agent name and claims office telephone number.

3. Determine the coverage limits. PIP maximum is usually between $2,000 and $10,000 per person, with $200 a week for loss of income claims. Personal injury protection does not cover 100 percent of your lost wages. You may inquire what percentage the policy covers.

4. Contact the claims office by telephone or in person to file a claim for an incident. The claims office may record your telephone conversation as an incident report. The claims representative will send you forms for release of medical information and loss of wages from your job. Once the insurer establishes a claim file, you can file a claim for your medical expenses and a claim for days lost at work.

5. File a claim with your health insurer for medical bills. If for any reason the PIP coverage does not pay, you want to have a claim made to cover your medical. You also want to place the health insurer on notice for when the PIP coverage is exhausted.

Tips & Warnings

• PIP covers more than your health insurance and covers relatives who live in your household and passengers. It also covers you for injuries incurred as a result of a accident in which the other driver is uninsured. You may also have similar coverage with uninsured motorist bodily injury coverage under your policy provisions.

• If you have several vehicles, your insurer may require PIP coverage on all vehicles. You may not be able to opt out on some and not all vehicles.

References

• Car Insurance Rates.com: Is PIP Necessary When You Have Health Insurance?
• Washington State Office of the Insurance Commissioner: Personal Injury Protection Insurance (PIP)
• Car Insurance.com: Insurance Coverage Definitions -- Car Insurance Coverage