Personal injury protection is a branch of auto insurance that deals with the passengers of a vehicle in the event of an accident. It covers the expenses incurred for medical bills and funerals of an accident occurs.
The difference between personal injury protection and health insurance is that health insurance only covers the medical expenses if the driver is at fault while personal injury protection does so irrespective of who the fault is from. This explains why personal injury protection is also called a “no-fault” coverage or insurance.
Another distinguishing factor is that personal injury protection also pays for “lost fees” in cases where the accident victim is bedridden and unable to work for some time due to the injuries sustained. However, personal injury protection is limited to car injuries alone. The victim may be a passenger, a pedestrian or even the driver of the vehicle but the only constant factor is the cause of the accident – a car.
Before approving the funds for treatment, the insurance company may have the accident victim examined by medical personnel or (in cases of emergency), issue a partial approval. One thing you should know though is that PIPs don’t cover all expenses. In Florida, it only takes care of 80% of the medical expenses and a sum of $10,000. Anything above that would have to be funded personally.
Do You Need a Personal Injury Protection?
Personal injury protection is not a must-have in most states. As a matter of fact, only 16 states in the United States request that every driver should have a minimum level of personal injury coverage. A PIP coverage takes care of most of the expenses resulting from an accident including:
- Lost fees and
- Funeral expenses.
This, however, is not guaranteed in all states so it is essential to have accurate details on the policy for your state while considering getting a PIP coverage.
Summarily, personal injury protection insurance is not compulsory but it is advisable. It puts you on the safer side regardless of who is at fault in an accident. Also, depending on the state, a PIP may or may not be linked to your health insurance so speak with your insurance company before you get a PIP and ask as many questions as you would love to.