Definition of Personal Injury Protection Insurance

Nowadays, almost everyone owns a car. That is why people can't deny the fact that accidents are everywhere. However, people can avoid accidents if only they have discipline among themselves. If an accident is really unavoidable, it is important for a person to have an insurance policy to support him like a personal injury protection (PIP) insurance.

A personal injury protection insurance is an extension type of car insurance that is intended to cover an injured person's medical and other expenses like wage loss and funeral expenses, which resulted from a car accident, no matter who is at fault of it. The law does not require a person to have PIP coverage, but an insurance company should offer it to a person, it's up to them to acquire for it.

There are states, though, that requires a mandatory PIP coverage like Florida, Delaware, Kansas, Hawaii, Kentucky, Michigan, New Jersey, Massachusetts, New York, Minnesota, Oregon, Utah, North Dakota, Michigan, and Pennsylvania. All registered drivers from the said states are obliged to have updated personal injury protection insurance.

The compensation limits of PIP can be from $1,500 to $250,000, depending also on the state. The persons included in the coverage is the person named in the insurance policy, the household residents related by blood, marriage, adoption, foster children, and stepchildren. Third party individuals such as the non-family passengers and the pedestrians who are involved in the accident are also covered.

PIP coverage provides and covers benefits of up to $10,000 for the necessary and reasonable medical expenses of every individual injured in a car accident. This coverage is accessible for up to three years since the date of accident. There is also an income replacement coverage amounting up to $200 per week. After a person has been work-disabled for 14 consecutive days following the accident, the said income replacement coverage is limited only for one year. Included also are funeral expenses of up to $2000. There is also a loss of services coverage amounting of up to $5000 as a payment to others for the task or job that the injured person cannot do.

Personal injury protection insurance does not cover injuries due to the following: farm equipments, off-road or recreational vehicles, mopeds, and all types of motorcycles. PIP does not also cover intentional injuries incurred by the insured person, or if the person is injured in an organized racing activity, or while committing criminal acts.

A PIP coverage can be considered to be an important matter for a person who drives and owns a car. It is up for them to decide whether they will need and get this type of insurance. For some, if they already have a health insurance policy and if their passengers rarely rides with them, and has a health insurance policy as well, they decide not to get PIP insurance. Yet, as said earlier, there are states that implements obligatory PIP coverage. So whether they like it or not, they need to have one. There are other options for a PIP coverage like basic medical payments amounting to $5000 for the medical treatment only, no matter who is at fault of the car accident.

The costs of PIP coverage differs with each insurance company. Just remember that in PIP coverage the insurance agent may oblige a person to cover and insure all of the vehicles listed in the policy. In this case, the more vehicles listed in the policy, the higher will be the payment for the insurance.

Selecting a personal injury protection insurance should be a careful process and a conscientious decision. A person must pick the most appropriate for them but cost-effective as well. After all, this insurance is for their own good if ever accidents occurred.