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What Is PIP Insurance?

PIP insurance, or Personal Injury Protection insurance, is a type of automobile insurance coverage that pays for medical expenses, lost wages, and sometimes other costs resulting from an automobile accident, regardless of who is at fault.  According to a motor vehicle accident lawyer, PIP is intended to provide additional financial protection beyond your basic liability insurance coverage and is designed to provide quick access to money to pay for immediate expenses, such as medical expenses, rehabilitation costs, and funeral expenses.  Some PIP policies may also cover childcare expenses if you are unable to care for your child due to your injuries, and other essential services like housekeeping and yard maintenance. PIP is particularly beneficial if your health insurance coverage is not that great, or if you frequently have passengers in your car who may not have their own health insurance.  

PIP insurance is required in some states and optional in others, and some states require you to carry PIP in addition to liability insurance.  

How Does PIP Work?

PIP provides coverage for various expenses and costs as a result of a car accident, regardless of who was at fault for the accident as our friends at Kiefer & Kiefer can share.  For example:

  1. Medical Expenses.  PIP insurance covers the medical expenses incurred from the injuries sustained in the accident.  This may include ambulance bills, hospital bills, doctor bills, radiology bills, surgery, medications, rehabilitation, and physical therapy.
  1. Other expenses and lost wages.  Sometimes PIP insurance will even cover funeral expenses should someone die due to their injuries sustained in the car accident.  Similarly, it may cover your childcare expenses if you are unable to care for your children due to your injuries, and other essential services like housekeeping or yard maintenance.  It could also reimburse you for any lost wages you incurred due to the accident and the injuries caused by it.
  1. It provides coverage even if you are at fault for the accident.  Unlike liability insurance, PIP insurance will provide coverage regardless of who is at fault for the accident.  This means that you can file a claim against your own PIP policy even if the other person caused the accident.
  1. It provides coverage for you and others involved in the accident.  PIP can provide coverage not just for you, but also for your passengers, pedestrians, and bicyclists involved in the accident.  It can even extend to other persons living in your household if they are injured while in someone else’s vehicle, or pedestrians struck by your vehicle.
  1. It may apply to other motor vehicles, not just cars.  Depending on the state and the insurer, PIP may include coverage for injuries sustained while riding a motorcycle or a motorboat.  

What Is The Difference Between PIP And Liability Insurance?

While both PIP and liability insurance are both used for automobile accidents, they serve different purposes and their coverages are not the same.  For example, you can use PIP even if you are not at fault, whereas liability insurance can only be used if you are at fault.  In the same vein, you can cover your own expenses if you are at fault under your PIP policy, but you cannot under your liability policy.  

In summary, PIP is designed to provide quick financial assistance for medical and other expenses resulting from a car accident, regardless of whether you are at fault.  It can provide additional coverage for you and your loved ones when injured in a car accident.  It is crucial to review your insurance policies and their coverages to determine what is best for you and your family. If you are involved in an accident and need help with insurance issues, contact an attorney near you.