Frequently Asked Questions About PIP Insurance

As a new car owner, you are probably confused about which personal auto insurance to purchase. One of the essential auto insurance policies that will secure you in the event of an accident is a personal injury protection (PIP) policy. Here are some frequently asked questions about this personal car insurance policy.

What Is PIP Coverage?

PIP coverage caters to medical costs regardless of who is to blame. This policy could help you even if you are not injured in your car. For example, PIP will cover you if you are injured while walking or riding your bike, or even riding in another person's car.

In no-fault states, a driver is required to file a claim with their insurance company regardless of who caused the accident. This means PIP coverage is compulsory. In at-fault states, the driver who caused the accident is responsible for paying for the victim's injuries. Therefore, they should have PIP coverage.

What Is Covered by PIP Insurance?

PIP insurance covers your lost wages and medical bills. It can also cater to the medical expenses of those who were with you in the car at the time of the accident. The percentage of lost wages you stand to gain will vary by state. For example, in Florida, accident victims who are disabled will receive up to 60% of lost wages. This type of insurance will also pay for funeral expenses, a survivor's loss, and essential services like child care and housekeeping.

PIP insurance will not cover another driver's injuries in a collision or property damage. Injuries in an accident while you were engaging in criminal activity, like running away from the police, will also not be compensated. This policy also does not apply to injuries in an accident where you were paid to drive a car.

How Much Does PIP Insurance Cost?

The cost of PIP, like any personal auto insurance policy, will depend on several factors. These include your area of residence, your driving record, your vehicle, your age, how much coverage you need, and how high you are willing to make your deductible.

For example, if you have a history of DUI arrests, you are a high-risk driver, and you may have to pay more. On the other hand, if your deductibles are high, your policy will be cheap. The best way to determine how much you will pay is to get a quote from your insurance provider.

In Conclusion

When buying PIP insurance, make sure you take quotes from different insurance providers. Some insurance providers will give you a discount if you buy multiple policies from them. Make sure you ask about the best limit for you and how to make a claim in case of an accident.