What is Personal Injury Protection?
Written by Cooper & Friedman on February 4, 2016
When you get into a car accident, there may be many damages beyond just your vehicle. This includes medical expenses, lost wages, fees for rehabilitation, child care expenses and other unexpected out of pocket costs associated with the car accident. Personal Injury Protection or PIP insurance works together with your car insurance to provide additional coverage for damages that extend beyond your vehicle.
PIP coverage is sometimes referred to as “no-fault” coverage because it is paid despite the legal ramifications or liabilities considered in most car accidents. This type of coverage is not offered in every U.S. state, while it is mandatory in some states like Kentucky, Florida, Michigan and New York. Additionally, while PIP coverage is not required in certain other states including Indiana, Illinois, Tennessee or Ohio, residents can choose to purchase PIP coverage separately.
States that require PIP insurance coverage are sometimes called “no fault” states. Yet this doesn’t necessarily mean that fault is completely disregarded in car accident cases. When PIP insurance is mandatory, liability car insurance is also required. If you cause a car accident, liability insurance covers other people’s medical injuries or damaged property.
In most cases of PIP coverage, the insured driver will make the claim. While there are different exclusions associated with claiming PIP for an auto accident, this coverage provides added protection for those insured. As reported by the Insurance Information Institute, in the 3rd quarter of 2010, the average PIP claim costs totaled $8,096.
Minimum Personal Injury Protection Varies State by State
The minimum PIP coverage in states that require it varies. For example, in Kentucky, Florida and Hawaii, the minimal amount of coverage with PIP provides up to $10,000 for one person involved in an accident. While in Massachusetts, minimal PIP coverage is $8,000 per person, and in New York it is $50,000 per person. Regardless, those opting for higher PIP coverage may receive upwards of 80% of the covered expenses from an accident.
Personal Injury Protection is beneficial for car accident victims and those at fault for an auto accident. In order to give yourself added protection from drivers not covered by PIP, you can always increase your own PIP premium. For more information about PIP coverage, you should speak with an insurance agent in your state of residence.
If you’ve been in a car accident in Kentucky or Indiana, and you need an attorney’s help, contact the Cooper and Friedman law firm at 502-459-7555. We have over 45 years combined legal experience, and offer free case consultations.