Personal Injury Protection (PIP), also known as “fault insurance”, is part of the car insurance plan that covers the healthcare costs associated with a car accident. What does personal injury protection cover?
Understanding Personal Injury Protection (PIP)
The requirements and functions of auto insurance vary from state to state, and PIP protection is available primarily in fault-free conditions. In the absence of fault, if the policyholder is injured in a car accident, the person’s policy covers the medical costs of the policyholder regardless of who caused the accident. Insurers with PIP insurance can receive benefits even if the other driver is not insured.
PIP insurance, in addition to providing affordable medical care, often provides for the payment of lost income, childcare and funeral expenses related to an accident. Some states are guilty of paying for medical payments, but they usually have low limits and don’t cover those other costs.
What does protection against personal injury include?
PIP insurance covers the necessary medical procedures as well as reasonable expenses related to rehabilitation after recovery from an accident. Types of expenses covered vary by state and may include:
- Constant professional care
- Earnings lost if you can’t work
- Funeral costs and accidental death benefits
Some home care expenses, such as taking care of children or cleaning the home, if you are unable to fulfill these responsibilities yourself
Do you need a PIP if you have health insurance
If you live in one of the 16 states where PIP protection is required, you must file a claim under this policy before using health insurance. But even if it is not required in your condition, PIP insurance offers a number of benefits that you will not get from your health insurance policy, such as insurance against loss of earnings and funeral expenses.
What does PIP not cover?
Since PIP does not provide any protection against physical damage to the vehicle, you would not have any protection after an accident due to fault.
PIP does not include:
- Civil liability insurance for damage to property: damage to property of others (including their vehicles)
- Collision protection: damage to the vehicle after an accident due to a fault
Comprehensive insurance: vehicle damage caused by a non-collision incident
Insurance for uninsured / uninsured drivers: this insurance can be applied to real estate or personal injuries. Although you can still take out uninsured property damage insurance (which protects your car if the party after fault does not insure or does not have sufficient insurance), PIP provides the insurance necessary to insure against accident.