What is PIP insurance?
PIP Insurance (Personal Injury Protection) is an extension of auto insurance that covers medical expenses, lost wages and other damages. This coverage is know also as “no-fault” coverage because it kicks in even when you are involved in a not-at fault car accident. If you are involved in car accident and you are hurt, you can receive medical benefits or loss of income weather it was your fault or not. PIP will also pay for the medical transportation and funeral expenses too.
PIP Insurance is mandatory in 13 states
In some states this coverage is optional, but in some it is mandatory (No-Fault states). The PIP insurance is mandatory in: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, The District of Columbia and Utah. The limit listed on your policy for PIP Insurance is per person, and each person in the vehicle involved in the accident is covered up to that limit. In some states like New York, if you are hurt as a passenger in somebody else’s car and you are currently insured, the primary protection comes from the insurance on the vehicle involved in the accident, not from your own policy. The PIP insurance coverage protects all household members of the policyholder. This coverage protects them even when they are not listed on the policy and they are passengers in other vehicles involved in an accident. It will also cover household members even if they are not in a vehicle (for example, pedestrians or bicycle riders) if they were involved in auto accident. In some states, PIP insurance is subrogable. Which means you insurance company will pay for the damages and then they will subrogate (will collect the money) from the other party that caused the accident. The minimum limit that the insurance company offers is between $15,000 to $250,000. This limit with some insurance companies can be easily increased up to $1 million, but you must talk with the company for underwriting approval.