Personal injury protection
Personal injury protection (PIP) is an extension of
Auto insurance
PIP is a mandatory coverage in some states. PIP coverage may vary from state to state in terms of both what is covered and what types of treatments are considered medically necessary and reasonable. In Texas, PIP coverage will cover medical expenses, eighty percent of lost wages, and someone to take care of the injured party. Some states also allow for PIP claims even if a workers' compensation claim exists, while others do not. Some states PIP is the insurance of first resort to pay for medical bills when injured in an automobile accident.[1]
In some states, PIP is subrogatable, meaning that your insurance carrier will pay for your loss, regardless of liability, and then recover (or subrogate) what it paid from the liable party's insurance carrier.[2] This generally leaves the claimant/insured in a much better financial position, because his or her medical bills are paid, and the insurance carriers get to fight it out on their own, and after the fact.
PIP can cover, within the specified dollar and time limits, the medical and funeral expenses of the insured, others in its vehicle at the time of the loss, and any first party if struck as a pedestrian by any vehicle. The basic coverage is for the insured's own injuries, on a first-party basis, without regard to liability. Again, it is only available in certain states. A pedestrian struck by a vehicle is covered under that vehicles liability.
Many states that do not have PIP have auto medical payments (AMP) coverage, and some states have both. AMP is also a first-party coverage, without regard to liability, but is only subrogable in a few states, and generally optional.
AMP and PIP limits range from $1,000 to $250,000 depending on the injury and the state, though many insurance providers have a relatively low limit of $5,000. A Michigan no-fault policy provides unlimited medical and rehabilitation benefits.[3] Claimants involved in an auto accident are wise to submit their own insurance information to their medical providers, as third party carriers are under no legal obligation to pay a claimant's medical bills, while first party carriers are.
Third party carriers are subject to payment only after a judgment against them, and any payments prior to that are considered voluntary. Settling a claim with a third party carrier is considered a voluntary payment.[4][5]
States with mandatory PIP coverage
- Delaware
- Florida[6]
- Hawaii
- Kansas
- Kentucky
- Maryland (unless a waiver is signed at initial purchase of the policy)
- Massachusetts[2]
- Michigan[7]
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
Certain states require insurance companies to offer PIP coverage, but allow the insured to reject it in writing:
- Washington[8] Once you reject the coverage it stays that way until you request it be added or start a new policy.
- Texas
- Arkansas is optional
Other coverage
Personal injury protection could also refer to personal injury insurance or coverage, which is insurance in any context which includes coverage for
References
- ^ "Workers Compensation Insurance". III. 2014-01-12. Retrieved 2024-03-03.
- ^ a b Burnes, Nonnie S. (16 September 2008). "2008-12 Clarification of Coordination of Benefits under M.G.L. c. 90, ยง34A and the Interrelationship by and among PIP, Health Insurance and Medical Payments". Massachusetts Office of Consumer Affairs & Business Regulation. Retrieved 3 April 2015.
- ^ "No-Fault Automobile Insurance in Michigan" (PDF).
- ^ Lamberg, Erica. "Everything you need to know about travel insurance before you book your next trip". CNBC. Retrieved 2024-03-03.
- ^ "USAA members injured in car wrecks battling San Antonio insurer over medical payments".
- ^ "Personal Injury Protection (PIP)". Florida Office of Insurance Regulation. Retrieved 3 April 2015.
- ^ "Michigan DIFS Brief Explanation of Michigan No-Fault Insurance" (PDF).
- ^ "Personal injury protection (PIP)". Washington State Office of the Insurance Commissioner. Retrieved 3 April 2015.
- ^ Evaluating Homeowners and Renters Insurance Policies. Citizen Media Law Project.
- ^ Oops! Did I Say That? Personal Injury Coverage and Homeowners Insurance. AskTim by Independent Agents & Brokers Association of New York, Inc.