What Is Personal Injury Protection?

Some states have no-fault insurance, designed to cover only your property and medical care in the event of an accident. They require Personal Injury Protection (PIP) coverage for medical care for drivers and their passengers in the event of an accident.

Some states have no-fault insurance laws, which means insurance policies are designed to cover your property and medical care instead of protecting the other driver in the event of an accident. People who live in no-fault states are required to carry Personal Injury Protection (PIP) coverage, which provides coverage for medical care for yourself and your passengers if you are in an accident.

Is PIP coverage necessary?
Some states have laws that require people to purchase PIP coverage, including:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Texas
• Utah
• Washington

The amount of coverage required varies from state to state, but all no-fault states require this coverage to help reduce the number of lawsuits that are filed over car accidents each year.

What is covered under PIP insurance?
PIP insurance covers medical expenses, funeral expenses, and lost income. In some cases it may also cover child care expenses and household services as well. PIP is only for medical care, so it does not cover property damage of any kind. It is important to remember that PIP is designed for you and your passengers, so it doesn't cover anyone who wasn't in your car at the time of your accident.

What is MedPay? How is it different from PIP?
MedPay is additional coverage for medical expenses if you are in an accident, like PIP, but there are a few differences between the two policies, including:

• Amount of coverage: MedPay typically offers no more than a few thousand dollars in coverage for medical care, usually intended to cover small injuries or as a supplement to health insurance to cover deductibles and copays. PIP coverage can vary greatly from different states and policies. States like Michigan require insurance companies to offer unlimited PIP coverage to their customers.
• Scope of coverage: MedPay is only able to be used for medical expenses, where PIP applies not only to medical costs but also lost income, funeral expenses, and other costs associated with your accident.
• Deductible: PIP often comes with a deductible, but MedPay doesn't have a deductible you need to fulfill before you can use the coverage.

What is the difference between bodily injury coverage, and personal injury protection?
Bodily injury coverage is a type of liability insurance, which means it covers the other person's medical costs if you are in an at-fault accident. Most states require that you carry bodily injury liability coverage.

PIP covers your medical bills if you are in an accident, no matter who is responsible for your injuries. PIP coverage is only required in no-fault states and is designed to give you some level of coverage without needing to take the other driver to court in the event of an accident.

What is the difference between personal injury protection and uninsured motorist coverage?
Uninsured motorist coverage is designed to cover your medical costs if you are hit by someone who is uninsured or underinsured. Uninsured motorist coverage can be broken into two parts, bodily injury and property damage, so if you elect both types of coverage you may also be covered for property damage caused by another driver.

PIP coverage is for medical expenses and costs associated with injuries you sustained during an accident, no matter who was at fault. PIP is not limited to being used only when you are hit by an uninsured driver, it can be used in any situation where you have been in a car accident. PIP does not cover property damage.

How much does PIP insurance cost?
PIP costs are determined by a number of factors, including the laws in your state and how much coverage you are purchasing. Reaching out to our experts here at Goosehead Insurance is an excellent way to make sure you are choosing the right amount of PIP coverage for your needs.

Do I need PIP insurance if I have health insurance or Medicare?
If you live in a state where PIP coverage is required by law, you will have to purchase coverage whether or not you think you need it. If you live in a state where PIP is sold as an extra coverage you may still need to purchase it, even if you have health insurance or Medicare.

Federal law prevents drivers from coordinating their No-Fault PIP medical benefits coverage with Medicare. This is prohibited by the "Medicare Secondary Payer" law, which states that Medicare will not cover injuries sustained in a car accident when payment is expected through a no-fault insurance policy. Given the complexity of the laws involved with these types of coverage, it is a good idea to reach out to an insurance expert for more information.

Article written by: Agent: Natalia Ayme