Personal injury protection insurance coverage, also known as PIP, is a type of insurance that covers direct and indirect expenses for injuries arising out of an automobile accident. It is mandatory in many states and is available even in states where it is not mandatory. In "no fault" auto liability states, PIP coverage will protect you even if the accident was your fault.
Scope of Coverage
PIP will cover your medical expenses, including hospital and other medical expenses, as long as these expenses are "reasonable and necessary." It will also cover injuries to members of your household and uninsured passengers, as well as authorized drivers of your automobile. It will protect you and members of your immediate family if they are injured while riding in someone else's vehicle. In many states, PIP will also cover rehabilitation costs, lost income, child care expenses, funeral expenses and injuries to a pedestrian struck by an automobile.
Coverage Exclusions
PIP will not cover injuries to a driver or passenger in a recreational vehicle, motorbike or farm vehicle such as a tractor. It will not cover intentional injuries even if the injured party was the victim and not the perpetrator. PIP will not cover accidents related to the commission of a felony, even if the injured party was not involved in the felony.
Mandatory Coverage
As of 2010, PIP coverage was mandatory for residents of Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas and Utah, although minimum coverage limits vary. PIP is optional in all other states but is freely available for purchase.
Where to Get PIP
Most auto insurance companies offer PIP coverage. Rates vary from company to company, and the cheapest policy may not be the best value, because coverage terms such as the amount of deductible vary from company to company.
Cost
The cost of PIP depends not only on the company from which you purchase the policy, but also on state minimum coverage limits. Where PIP is required, state minimum coverage limits ranged from $1,500 to $250,000 as of 2010. If you already have a health insurance policy, your policy may already partially cover a portion of your needs, and PIP coverage will be triggered only when your health insurance coverage is exhausted. Costs also depend on the amount of your deductible. You should consider purchasing in excess of the minimum limits if you often take passengers in your car, because you may be held responsible for injuries to your passengers. Finally, you should consider purchasing more coverage if you drive more than one vehicle, because each vehicle must be insured separately.
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