You probably haven’t changed your car insurance in the last 10 years because you’re afraid to face the confusing tangle of companies and the terminology that is seldom understood. One of these terms is Personal Injury Protection. This is protection that was put in place initially to cover uninsured motorists. It pays for the medical expenses and other damages that you may have. It is mandatory to carry PIP in Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.
It will pay out the medical bills, lost wages and other expenses. It is considered a no-fault protection because it covers even if the cause was not your fault. The blame doesn’t need to be settled, so the medical payments get to who needs them almost immediately. And you can’t sue against it except in special cases, so it saves money there as well. But before you make the decision to add it to your current car insurance policy make sure that you’re not already carrying something like this in your health insurance policy. In states where you don’t need to carry PIP and you have good health insurance, you probably shouldn’t carry PIP too.
But for those states I mentioned that demand you carry PIP, you will be advised how much Personal Injury Protection you must carry on your car insurance policy. There is no way getting around the minimums required. And you really don’t want to. What this pays for is peace of mind for you and your passengers. It covers medical, hospital and funeral expenses of the insured, everyone else in the vehicle, and any pedestrians struck by the insured. If you don’t have health insurance, you should have Personal Injury Protection on your policy.
Depending on the state, and you’ll have to call your insurance agent and ask for clarification, policyholders and family members are covered if they are injured while riding in someone else’s car or as a pedestrian when struck by another vehicle. Again, this is state by state and may not be available or written that way for your state.
According to the Insurance Research Council, about one in six drivers could be driving without enough auto insurance in 2010. New technologies are allowing law enforcement to track down drivers without auto insurance. If you pay for PIP, know that it is important and it helps minimize the risk of financial hardship if you are struck by a driver without insurance.
This information is provided for information purposes. They are not intended to substitute informed professional advice. These responses should not be interpreted as a recommendation to buy or sell any insurance product, or to provide financial or legal advice. Please refer to your insurance policy for specific coverage and exclusion information.