Do You Need Personal Injury Protection on Auto Insurance?
Personal injury protection is the portion of an auto insurance policy dedicated to injuries sustained by the driver and her passengers in an auto accident. Some states in the country choose to make a certain amount of PIP mandatory on all auto insurance policies to cut down on the number of auto-related lawsuits in the court system.
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States with No-Fault Insurance
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In states with no-fault insurance laws, personal injury protection is required on all auto insurance policies. No-fault insurance means each insurance company covers the costs of injuries sustained by its drivers in an auto accident regardless of who caused the accident. Certain exceptions apply to these laws when the injuries sustained in an accident are severe or far exceed the limits of a driver's insurance policy to adequately cover them. As of December 2010, the following states have no-fault insurance laws: Arkansas, Delaware, Florida, Kansas, Hawaii, Kentucky, Maryland, Michigan, Massachusetts, Minnesota, New Jersey, Pennsylvania, New York, North Dakota, Utah, Oregon and the District of Columbia.
What Personal Injury Protection Covers
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Personal injury protection pays your medical bills and related expenses such as medications and physical therapy, lost wages and related costs like child care and home maintenance which may go neglected because of your injuries. Personal injury protection can only cover your injuries and related costs up to the limit of your policy so it's always beneficial to have a health insurance plan to backup your auto insurance in case of an injury accident.
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Personal Injury Insurance Tips
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Personal injury insurance also covers any passengers in your vehicle at the time of an accident. This is particularly useful if you frequently travel in an office carpool where passengers may be uninsured or under-insured. This is particularly important if you live in a state where fault is assigned in accidents as it may prevent your passengers from suing you in civil court to recover damages sustained from an accident you caused.
How Much Coverage to Have
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Each state with no-fault insurance laws mandates a specific minimum of personal injury protection which each auto insurance policy is required to carry. If you are an older driver with good health insurance, a minimum personal injury protection policy may be a smart money-saving idea. If you are a young person with no health insurance, a larger personal injury protection policy is all but a necessity since you have no other means of covering your injuries if you are involved in a serious auto accident.
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