A Comprehensive Guide to PIP Insurance for Road Accidents

PIP insurance gives drivers and their passengers financial compensation in case of a car accident. It covers medical expenses and wage loss after a wreck.

PIP insurance

Many states require drivers to have PIP insurance because they’re no-fault states regarding car accidents. However, you might want to add PIP insurance to your policy regardless of being  necessary for your location. Learn more about Florida PIP insurance and understand how it can help you after an accident.

What Is PIP Insurance?

Personal Injury Protection (PIP) insurance covers various expenses you accrue after a car accident. If you have PIP insurance, you’ll get money to cover your medical bills and help with lost wages if you get injured due to an accident.

This type of insurance is also no-fault insurance because it pays out no matter who caused the accident. If you were at fault in the car wreck, you could still get this insurance money to help pay your bills. Even if you weren’t at fault, you could use this money to pay expenses while you wait for a larger settlement from the other driver.

There are 12 states requiring PIP insurance, including:

  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Oregon
  • Utah

These states have specific requirements regarding how much coverage you need to have. The minimum coverage is $4,500 or $5,000 per person, but some states require $15,000 or more. In other states, PIP is entirely optional.

What Does PIP Insurance Cover?

PIP insurance provides money to cover medical bills for you and any injured passengers. It can even help you in pedestrian accidents, paying your medical expenses if you’re hit by a car while you’re out walking. You can also use this money to cover your health insurance deductible.

If you can’t work due to injuries from the accident, you can use PIP insurance to cover your wages. You won’t have to dip into your savings, borrow money, or go broke because of the accident because insurance will provide the necessary funds.

PIP insurance will also pay funeral costs if you or a loved one dies due to a car accident. You can use the money for burial, cremation or pay for the funeral service itself.

The insurance policy can also pay money to your surviving dependents regarding survivors’ loss. They won’t have to suffer from the lack of income because the insurance pays them.

If you have injuries that prevent you from performing your regular chores, you can use PIP insurance to hire help. These expenses include childcare, cooking, or cleaning services.

What Does PIP Insurance Not Cover?

PIP insurance covers many helpful expenses, but you can’t use this money for everything after a car accident. The policy doesn’t pay off property damaged due to the wreck. This means it won’t cover your vehicle or the surrounding property where the wreck occurred.

The policy also doesn’t pay any money to the other driver. Those funds come from your general car insurance collision policy. PIP payments are for personal needs only.

You also can’t accept PIP insurance payouts if you were in an accident after committing a crime, like if the police were pursuing you at the time of the wreck.

People who drive for services like Uber, Lyft, and food delivery can’t use PIP insurance payouts if an accident happens while working. You were getting paid to drive, so the PIP policy doesn’t cover that aspect—it only covers you when you’re driving for personal reasons.

Final Notes

PIP insurance isn’t required in every state, but some places have no-fault insurance laws that require this coverage. Even if it’s not legally necessary in your state, you might consider adding PIP insurance to your bodily injury and property damage liability insurance. This complete package ensures you’re always financially covered in case of a car accident.


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