UPDATED: Mar 19, 2020
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You may not be familiar with Personal Injury Protection, or PIP. It is commonly called no fault insurance. PIP is required insurance in some states, though not all. Claims are often filed against a PIP policy regardless of who caused the accident. Even though some states require PIP, there are minor variations in what PIP entails from state to state.
The main use of PIP coverage is to pay accident-related medical costs, and in some states, lost wages. If you are using PIP on your auto insurance be sure to understand exactly what is covered. PIP coverage can run the gamut from very conservative coverage to very liberal coverage. There can be a great variation in coverage from one state to another and even from one insurance company to another. Some states, like Utah, have very liberal definitions of what can be covered. Utah even covers homeopathic treatments.
Standard PIP coverage is usually for the insured party only. If you are at fault in an accident, and someone is injured, PIP coverage may cover that person’s medical costs very quickly. After the costs are paid, the insurance company will be expecting payment from your insurance company since you were the person at fault for the accident. This model of coverage takes stress of the injured person and will, hopefully, allow them to recover at a faster pace without adding extra stress.
Here is a list of states that make having PIP coverage mandatory:
- Florida (Florida Insurance Guide)
- Hawaii (Hawaii Insurance Guide)
- Kansas (Kansas Insurance Guide)
- Kentucky (Kentucky Insurance Guide)
- Massachusetts (Massachusetts Insurance Guide)
- Michigan (Michigan Insurance Guide)
- Minnesota (Minnesota Insurance Guide)
- New Jersey (New Jersey Insurance Guide)
- New York (New York Insurance Guide)
- North Dakota (North Dakota Insurance Guide)
- Pennsylvania (Pennsylvania Insurance Guide)
- Utah (Utah Insurance Guide)
The remaining states do not require PIP coverage.
PIP is a very potent part of automobile insurance. It will not only cover the driver but also passengers, pedestrians who may have been injured in the accident. PIP can provide injury coverage for all of these people who may have been injured in an accident. All of these people are eligible for medical coverage and even funeral expenses under certain PIP policies.
The last thing you want to do if you should ever have the misfortune of being involved in a serious accident is to find out that you don’t have sufficient coverage for your injuries. It is wise to get in touch with your insurance agent to find out what you are covered for now. Having PIP coverage is for your benefit in case of injury, where injury and personal liability are usually geared toward victims of an accident. Be aware that states that have mandatory PIP laws sometimes require additional liability coverage of some kind as well.