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What is PIP Insurance and Do I Need It?

December 11, 2017 5:52 pm

No matter what its type or coverage level, insurance is designed to shield people from risk. Business owners carry liability insurance to protect themselves and their personal assets from unforeseen circumstances and lawsuit-happy customers. Drivers buy car insurance to protect themselves in the event of an accident. Homeowners and renters invest in insurance to protect their property and residences from the risk of fire, flood and natural disasters. Workers carry health insurance to protect themselves from the devastating costs of a lengthy hospital stay or serious illness.

All of those types of insurance coverage have their place, but there is another important kind of coverage to consider. That coverage is PIP insurance, and it is important to understand how it works, whether or not you need it, and how it may affect your other insurance rates.

What is PIP Insurance?

The PIP in PIP insurance stands for personal injury protection. You may also hear this kind of coverage referred to as Med Pay, and it is an option when purchasing automobile insurance.

If you choose to purchase PIP insurance and file a claim, the policy will pay money in compensation for any out of pocket medical expenses you may incur. This can be an important benefit, especially if you have a high deductible health insurance policy. Typical PIP coverages range from $1,000 to $10,000.

Other Advantages of PIP Insurance

In addition to payment of out of pocket medical costs like copayments, deductibles and prescription medications, some PIP insurance policies also provide coverage for lost wages. Once again, that can be an important benefit, especially if the aftermath of an auto accident causes you to take time off for medical appointments and physical therapy treatments.

The amount of lost wages you can recover will be determined by the limitations of the policy, so read the fine print carefully and know exactly what you are entitled to. If you feel you need more protection against lost wages, you can always increase the limits of your PIP policy.

Will Adding PIP Coverage Cause My Rates to Go Up?

Many drivers forgo the protection and benefits of PIP insurance because they fear buying such coverage will cause their rates to go up. There are a lot of misconceptions about PIP insurance and premium rates, so it is important to get the truth.

Adding PIP insurance will not cause your car insurance rates to skyrocket, so you can put your mind at ease. As a matter of fact, PIP is one of the best values for insurance money can buy. It’s inexpensive, and easy to make a claim. You should not let worries about higher premiums stop you from getting the protection only PIP insurance can provide.

Help for Injured Clients

If you have been injured in an auto accident, it is important to contact an experienced personal injury attorney as soon as possible. Even if you do not think your injuries are severe enough to warrant a lawsuit, it can take time for the pain to become apparent. If you fail to protect yourself, you could miss out on important benefits, and you may not be able to pursue a case later on.

Working with an experienced personal injury attorney can also increase the value of your PIP insurance. In many cases, your attorney can help you get the money you need right away, without waiting for your case to settle. Those advance payments can give you the funds you need to speed your recovery, continue your medical care and get back on your feet following the accident.

The legal team you are working with can also help you get the PIP coverage you need, so you will be properly protected against future industries. Many drivers do not understand the value of PIP insurance or how it works, but experienced personal injuries know the ins and outs of this special type of coverage.

Being involved in an accident is a disconcerting and scary experience, but what you do next can make all the difference. If you had the foresight to invest in PIP insurance in advance of your current injury, you can rest assured that your out of pocket medical costs, from copayments to deductibles to prescription and over-the-counter medications, will be taken care of. If you are working with a personal injury attorney to pursue a claim, you could even get advance payments on your PIP coverage, making your recovery that much easier.

If you are in the market for car insurance and your agent asks you about PIP coverage, be sure to weigh the pros and cons and make the appropriate decision. If you have a high deductible health insurance policy or have a limited ability to pay out of pocket medical costs, adding PIP coverage can give you peace of mind and protect you from unexpected expenses down the road.

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This post was written by Geoff Coston