PIP auto insurance can be confusing. This is a type of no-fault car insurance. Some states require this form of coverage. It helps pay for any medical bills you have in a car accident. It does not take fault into consideration when making the decision about who pays. If you need this form of car insurance, you should know how it works. Let's explore the topic a little more in-depth.
What Does PIP Do?
Personal Injury Protection, or PIP, is a specific form of auto insurance. Not all states require it. It does not replace general liability insurance. However, it can help to cut some of the financial burden related to medical losses from car accidents.
States began using this form of auto insurance in the 1970s. The goal was to make it easier to determine who was financially responsible after an accident. States requiring it include:
- North Dakota
- New York
- New Jersey
- District of Columbia
Still, you can often get this coverage in almost any state. It can prove beneficial in the right circumstances.
When Does PIP Apply?
This type of car insurance focuses on medical losses. It covers costs for you and your passengers if you or they get hurt in an accident. When an accident occurs, individuals who seek medical help can use this policy to cover costs.
A PIP can help cover many components of the post-accident process. This includes:
- Covering a health insurance deductible
- Covering funeral expenses
- Paying for any lost income a person suffers due to the injury
- Any expenses a health insurance policy does not cover
- Coverage for services you cannot perform due to the accident; such as childcare costs
Every policy has limits. When purchasing PIP, individuals will need to buy the amount required by their state. However, it is possible to buy additional coverage as well. Doing so can reduce any out of pocket costs a person may suffer. This is critical, as paying out of pocket can be financially straining.
PIP is a form of auto insurance you must have in Florida. Going without it could put your license on the line. To avoid this, work with your Prestige Insurance Group agent. Discuss options for reducing your potential loss. Work to improve the amount of coverage you have.