What does personal injury protection insurance cover?

Did you know you have to pay extra for personal injury protection if it’s not required in your state? Personal injury insurance is a valuable car insurance service, but it’s not a must for all drivers.

But what is PIP insurance? And why is PIP coverage recommended even when you don’t need it? Don’t worry — we’re here to help.

This guide shows every detail about PIP, how deductibles affect monthly rates, and how you can secure affordable car insurance.

Read on to learn all about PIP insurance and how much it costs. Use our free online quote tool above if you’re ready to compare multiple insurance companies near you.

What is personal injury protection?

Personal injury protection, or PIP, provides coverage for medical bills, lost wages, child care, and other essential services after you’ve been injured in an accident.

The PIP insurance meaning is often mistaken for liability coverage because several states have it attached to liability auto insurance. However, most states have personal injury insurance as optional coverage.

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What does PIP cover?

Personal injury protection coverage pays for several other things besides medical bills. Our research found a list of items that PIP auto insurance covers. Let’s examine the list below.

• Child care
• Cleaning service charge
• Legal fees
• Lost wages
• Hospital expenses
• Medical expenses
• Survivors’ loss

PIP insurance coverage pays for bodily injury regardless of fault. Injuries that make you incapable of working are compensated by your auto insurance policy’s PIP insurance.

After paying your deductible, you can receive a claim for lost wages, child care, and other essential services that you can’t do yourself. Personal injury protection also pays for medical bills and funeral expenses for you and your passengers.

What does PIP insurance not cover?

Personal injury insurance doesn’t cover damage to your vehicle, the other driver’s car, or personal items. You’ll need collision insurance to get coverage for your damaged vehicle.

Liability insurance covers the damage to another driver’s car when you’re at fault in an accident and vice versa. Meanwhile, comprehensive auto insurance provides coverage for unforeseen accidents that don’t involve a collision, such as a falling object, fire, or flooding.

What’s the difference between personal injury protection and medical payments?

PIP insurance is similar to medical payments (MedPay), but they cover different things. Your PIP coverage pays for incidents related to personal injury, while MedPay covers medical-related services.

Therefore, MedPay focuses on payments related to healthcare visits, co-pays, x-rays, and other medical bills. MedPay also has a smaller coverage limit and cheaper rate each month, but personal injury protection insurance is slightly more expensive, with double the policy limit.

Which states require PIP car insurance?

PIP insurance is required in quite a few states. Here’s a list of states where PIP coverage is attached to liability car insurance.

States that Require Personal Injury Protection

Puerto Rico is a United States territory, and it carries auto insurance requirements just like any other state in America. The required limit for most states with PIP is $10,000.

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How much is personal injury protection insurance?

Your PIP coverage is determined by the state where you live and your deductible. The average cost of car insurance is $90 per month. The personal injury protection portion of full coverage insurance is about 16%, which comes out to $15 extra a month.

But what is PIP coverage like for other states in the United States? Let’s look at how much you could pay for PIP coverage in states where PIP insurance is optional.

PIP Car Insurance Rates by State and Deductible

Higher deductibles generate more affordable PIP car insurance rates, but low deductibles do the opposite for your insurance policy. If you want to avoid the expensive out-of-pocket cost, we suggest a deductible between $250 and $500.

How much is PIP insurance coverage at the best car insurance companies?

Using the national average percent for PIP, we found the estimated cost of PIP at the best car insurance companies in the nation. Here’s what we found.

PIP Car Insurance Rates by Company

USAA is the cheapest auto insurance company for PIP, but USAA car insurance is only available to U.S. military veterans and their immediate families.

But the other companies are just as reliable. If you’re looking to save money on PIP, try Geico, American Family, Nationwide, and State Farm.

How much PIP coverage should I get?

We recommend the $10,000 limit for PIP auto insurance. If you think you need more coverage, raise your coverage limit. However, higher coverage levels drive up car insurance rates.

How do you file a personal injury protection claim?

Filing a PIP insurance claim is the same as filing any other claim. All you have to do is call your auto insurance company and let them know you need to start a personal injury insurance claim.

The insurance company will need your name, policy number, and driver’s license number. This information allows them to access your car insurance policy faster.

Explain your accident in detail, tell them about your injury, and give them a police report if you have it. If you’re able to, snap photos of your injuries.

You’ll have to send your report to your insurance company, so they can process your claim. And don’t forget that you’ll need to pay your deductible to move your claim forward.

Do you need PIP car insurance if you have health insurance coverage?

Yes, you do. Health insurance is strongly recommended. Although PIP auto insurance is optional in most states, you should consider supplementing your health insurance with PIP. This gives you more options to pay for medical and hospital bills in the event of an accident and minimizes out-of-pocket costs.

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Exploring Personal Injury Protection Insurance: Case Studies Based on Real-World Scenarios

Case Study 1: The Importance of PIP Coverage

In this case study, we examine the story of Sarah, a driver who opted for personal injury protection (PIP) coverage despite it not being required in her state.

Sarah was involved in a serious accident that left her with significant medical expenses and lost wages. PIP insurance proved to be a valuable resource for Sarah, covering her medical bills and providing financial support during her recovery.

Case Study 2: PIP vs. Health Insurance

In this case study, we explore the decision-making process of Mark, who had both health insurance and PIP coverage. Mark was involved in a car accident that resulted in injuries requiring medical treatment.

By comparing the benefits and limitations of his health insurance and PIP coverage, Mark was able to navigate the complexities of his medical bills and ensure adequate coverage for his expenses.

Case Study 3: PIP Insurance in Mandatory States

In this case study, we analyze the experiences of drivers in states where PIP insurance is mandatory. We delve into the stories of individuals from various states, such as Florida, New York, and New Jersey, who benefited from the comprehensive coverage provided by PIP insurance.

Through these examples, we highlight the significance of mandatory PIP coverage and its impact on individuals’ lives.

Case Study 4: PIP Deductibles and Affordability

This case study focuses on Jessica, a driver who faced the dilemma of choosing the right PIP deductible. We explore how different deductible options impacted her monthly premiums and out-of-pocket expenses in the event of an accident.

By analyzing Jessica’s situation, we shed light on the relationship between PIP deductibles and the overall affordability of car insurance.

Please note that these case studies are fictional and based on real-world scenarios. The purpose is to illustrate potential situations related to PIP insurance and raise awareness about the importance of adequate coverage.

PIP Insurance: The Bottom Line

Personal injury protection is one of the best coverage options that pay for injuries regardless of fault. It does increase your car insurance rates when you add to your policy. But if you live in a state that requires PIP insurance, you won’t have to pay extra for it.

Now that you have a better idea about PIP insurance, enter your ZIP code in the free online quote tool below to compare multiple insurance companies in your area.

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