When you have a car, putting insurance is something many adults don’t want to but have to do because of the monthly expense. The average annual rate for car insurance is $1,500 to $6,000 depending on the state you reside in. However, the money you put ends up being a lifesaver when you are involved in an accident, whether it is your fault or not.
Some new and veteran drivers may not know there’s more than one type of car insurance. When you are shopping, you want to find the best price for what you can get covered. For example, what is personal injury protection and what does it offer you as a driver? Keep reading to learn how to shop smart and pick which coverage is best for you.
What Is Personal Injury Protection?
Personal injury protection (PIP) is an extension you can add to your car insurance. With it, you have medical expenses covered, and in many situations, compensation for any lost wages.
You may also receive compensation for emotional pain and recovery. Many people know PIP as “no-fault” coverage since it provides extensive pay to the individual(s) who is at fault in the event of an auto accident.
This isn’t to say the person at fault receives nothing. They will, but it is often a lesser amount. You are required to have PIP coverage in 12 states, including Puerto Rico. While it is optional for the rest, it is an addition you shouldn’t skip on.
What Is Covered vs What Isn’t Covered in PIP?
The amount of coverage you get depends on the state you live in and the type of insurance provider you sign up with. Overall, this coverage is made to cover expenses unrelated to bodily injury.
What Personal Injury Protection Covers
You will receive compensation for medical expenses. It covers medical and surgical treatments, ambulance and transport fees, as well as medical supplies and devices. If you are unable to return to work following an accident or require substitute services to help you complete household tasks (cleaning) PIP will pay for this.
In the event a person passes away, PIP may even help pay for funeral-related expenses.
What Personal Injury Protection Does Not Cover
There are limits to what PIP insurance covers though. If you have an injury or bill unrelated to the car accident, you will not receive aid.
Although this may be obvious, there are cases that may be tricky or intertwine with this issue. This makes receiving the money you need harder.
Let’s say you suffer from a medical condition like arthritis and after a car accident, your condition is worse. Maybe you had to take extra visits or extra conditions you would not need before if it weren’t for the accident. Proving this can be very difficult on your own.
If you are involved in a car accident, you should always get a lawyer to help you with your case in order to receive the maximum compensation you deserve. Visit this page to speak with personal injury lawyers and receive a free evaluation. Other examples of payments not included in PIP insurance includes:
- No coverage for damage to your vehicle (you need collision coverage)
- No coverage for auto theft (you need comprehensive coverage to pay or replace the car)
- No coverage for medical expenses that exceed coverage limits (in rare cases, there may be an exception)
- No average for damage related to another’s property (you need liability insurance)
There are many types of add-ons you can pick when you get car insurance. It is important to understand how each of them works so you can build protection that’s right for you.
How Does PIP Coverage Work?
Personal injury protection offers aid anytime expenses are needed after an accident, but in order to get the best coverage, you should know how it works. PIP coverage is buildable with a coverage limit of up to $10,000 to $50,000.
If you decide to get $10,000 of PIP coverage, you can expect the monthly premium to be about $140. The minimum amount you can add is about $2,500.
The amount of coverage you request is the max coverage you will receive help with. You should speak with an insurance agent if you want to learn more about how PIP works to decide on a package that’s best for you.
Difference Between Personal Injury Protection and Liability Insurance
You shouldn’t confuse personal injury insurance with liability insurance. Many people who shop for insurance believe if they have or get liability insurance, it’s enough or it’s one and the same. It’s not.
Liability insurance is different because it is required in all states, with the exception of Virginia and New Hampshire. It pays for any injuries another person causes for everyone involved in the accident.
Personal injury protection covers everything else that is not related to direct injury. Although liability insurance is mandatory in most states, you are able to customize the amount of protection. You will see these limits shown as split limits or they are combined as a single limit.
You create the “limit” you want by deciding on an amount. Most drivers add liability insurance with personal injury protection and property damage coverage. There’s also professional liability insurance for businesses.
Stay Protected While Driving
Auto companies offer car insurance to drivers for a reason. When you are on the road, anything can happen. You can get hurt or you may hurt someone else. Sorting out car accidents comes with a financial price.
What is personal injury protection? It’s a type of coverage that allows you to get compensation for medical bills and other expenses outside bodily injury. Getting money for injuries you sustain is often not enough. You need more. When you add PIP and find yourself in a car accident, you have the comprehensive help you need.
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