Acquiring auto insurance is important to your personal protection if you are involved in an accident. Personal injury protection (PIP) is a type of auto insurance coverage that is optional. Most people will add it on as a second layer of protection to their existing insurance policy however in some states it is mandatory to add this coverage.
How Does Personal Injury Protection Differ From Others?
Personal injury protection is used to pay for medical expenses that are incurred due to an auto accident. In some instances personal injury protection will also pay for other needs like lost income along with pain and suffering expenses. If you are killed in the accident personal injury protection will also pay for funeral expenses. This type of insurance coverage has a no-fault clause and there is no increase in your insurance premium if you do have a personal injury protection claim.
What Does Personal Injury Protection Cover?
The driver of the vehicle that is involved in the accident along with all of their passengers will be covered by personal injury protection. Pedestrians that are hit by the vehicle will also be covered for damages as well. Insurance companies usually place limitations on this insurance coverage for the vehicle type and restrict it to only cars. This means your off-road vehicles and recreational vehicle like motorcycles will not be eligible for this type of coverage. Individuals that are involved in dangerous activities such as racing or off-roading in the vehicle cannot claim personal injury protection. If you are intoxicated at the time of an accident personal injury protection will not be provided.
Should I Add-on Personal Injury Protection?
Many people wonder what the benefit is to personal injury protection if their car insurance already includes coverage for medical expenses and their health insurance company will also provide coverage. The difference comes in the coverage amount. Some insurance companies will only pay a certain percentage of the lost income and other things. They may not pay for certain things like physical therapy along with cosmetic surgery that is needed after an accident. Before adding on personal injury protection it is a wise idea to find out what the coverage limits are with your health insurance and car insurance plan to see if you do need additional coverage or not. Individuals that engage in car pooling may want to consider it as it will pay for their other passengers, which can protect you from an expensive lawsuit and will increase your car insurance premiums if the individuals make a claim against your insurance.
Costs of Personal Injury Protection
If personal injury protection is required in your state, the cost usually will not be much higher from the quotes you get from multiple insurance companies. It normally does not have an impact on your insurance policy. You need to check on the coverage limits and read the terms and conditions in order to find out how much the personal injury protection will cost you. It is also wise to look at your health insurance plan and consider increasing the coverage on that policy if it will cost less than adding on personal injury protection.