Can You Do Without PIP?

Include PIP CoverageComparing auto insurance can be a tricky proposition. It not only requires you to examine your driving habits, your finances, and your responsibility to others on the road – it also requires you to take a look at your healthcare benefits. According to auto insurance experts, determining your level of personal medical insurance could have a big impact on how much money you spend for car insurance. Here’s how it works.

Personal injury protection (also known as PIP) is an additional auto insurance option that pays for your medical bills if you’re injured in a car accident. But having this coverage could be entirely unnecessary if you’re already covered by a good medical plan. Still, before you opt out of PIP it’s important to bear in mind a few things.

• PIP might be required in your state, therefore opting out may not be possible.

• PIP also pays the medical bills of any passengers that you have in your vehicle with you at the time of an accident. But if you never carry any passengers, this is unnecessary coverage.

• PIP pays for lost wages if you’re unable to work for a certain amount of time due to your injuries, however depending on your employer you may already be eligible for extensive coverage in this area.

When getting a quote for auto insurance, first check to see if PIP is required by law in the state where you live. If it’s not, and if none of the additional coverages apply to you, you might be able to save a hefty wad of cash by opting out. Keep this in mind when comparing auto insurance as it could impact your estimate.

What is No Fault Car Insurance?

Personal Injury ProtectionNo fault car insurance, sometimes referred to as PIP (which stands for “personal injury protection”) is an auto insurance option that’s only available in certain states. No fault insurance dictates that the insurance company of the injured person pays for all medical bills and other costs that go above and beyond the physical damage done to the vehicle.

How Does it Work?
If you’re involved in an accident, even if you live in a no fault state, damages to your vehicle are still covered by the insurance company of the person at fault for the accident. However there are specific limits to legal action you can take to recover the cost of medical bills and pain and suffering. The limits are all determined on a state by state basis.

Is No Fault Insurance Fair?
No fault insurance eventually leads to the question of fairness—if someone’s negligent actions behind the wheel caused a six-car pileup, why should the insurance companies of all the other good drivers who were involved have to pony up? This is a good question that’s often rebutted: no fault insurance might be unfair, but it’s a good thing in the long run. This is an assertion made by the proponents of no fault car insurance, who see it as a way to cut down on costly and time consuming lawsuits that usually come about as a result of accidents.