Personal Injury Protection, or PIP for its acronym in English, is one of the most requested by responsible motorists. Normally, when an accident happens, the first thing insurers do is investigate to find out who was at fault. In the event that you are responsible for the incident, then you will have to pay the consequences. But PIP insurance prevents you from being a victim of high costs by taking care of your medical expenses and other losses you suffer after an accident.
If you need to make a medical recovery and this prevents you from working, PIP insurance also covers lost wages. Most are unaware of this type of policy, so they do not know the benefit they lose by being able to acquire it within their auto insurance. It is necessary to know the characteristics offered by this type of insurance since some companies have different coverage.
The coverages that are within a PIP insurance
In most of the US territory, Personal Injury Protection insurance is offered within any auto insurance. Many pay for it inadvertently because they can do it indirectly. The coverages offered by PIP insurance are usually the following:
- Medical expenses of the driver regardless of who is responsible for the accident. It also helps with expenses in case your health insurance limit is exceeded.
- Coverage of lost wages in case the holder cannot work
- Funeral home expenses in case of death
- It is possible to have coverage for the passengers of the car and their driver.
Coverages also depend on the type of policy that is contracted and the state of residence. Not all policies can be found with the same coverage, some vary in their rules.
In which states is PIP insurance required?
In addition to being mandatory auto insurance, within these states the contracting of PIP insurance is also required.
- New York
- New Jersey
The main function of PIP insurance is to avoid claims for expenses after an accident. Within these states, the number of auto accident lawsuits has dropped considerably. This is thanks to the fact that it is no longer necessary to sue the other to cover expenses since PIP insurance allows to cover medical expenses in the insurance company itself.