What Are PIP Benefits?
Seeking compensation for injuries sustained in a car accident is typically a very long and tedious process. However, there are states in the US that require its motor vehicle owners to have their personal injury protection (PIP) car insurance as a means of getting instant compensation for car accident-related injuries irrespective of who is at fault. This allows the persons involved in the accident to focus more on their medical care and treatment rather than be bogged down by the loopholes of traditional auto insurance coverage.
What is PIP?
Personal injury protection or PIP is a type of car insurance which provides compensation for healthcare-related costs and possible lost wages as a direct result of injuries sustained from a car accident. It is also called the no-fault insurance coverage since it doesn’t assign blame or determine who is liable for the accident. What is important is for the injured parties to be given the compensation as stipulated under their no-fault insurance policy.
PIP auto insurance can be likened to Med Pay insurance where the policy will cover all costs arising directly from the car accident, but with the main difference being PIP insurance also compensates the individual for lost wages as a result of the injuries sustained. For instance, if the person cannot work for 2 weeks because of the injuries sustained, PIP will cover the lost wages for this same period in addition to the expenses incurred related to treatment and hospitalization.
What States have Mandatory PIP?
Florida is one of 13 states in the country that require all motor vehicle owners to purchase personal injury protection auto insurance whenever they register their respective motor vehicles. The other US states that have such a requirement include Hawaii, Utah, North Dakota, Kansas, Kentucky, Minnesota, Michigan, Pennsylvania, Massachusetts, New York, New Jersey, and The District of Columbia.
Other states also have PIP. However, this is largely optional. Additionally, PIP coverage greatly varies from state to state. For example, acupuncture is covered by the Utah PIP system while the same treatment is not covered under the California PIP.
What are the Benefits of Having PIP?
In Florida, motor vehicle owners who figured in an accident whether it’s their fault or not are entitled to receive up to $10,000 to cover for immediate medical care and treatment expenses. This effectively provides the injured party to seek immediate treatment and reduce the likelihood of developing complications as direct effects from the car accident-associated injuries. The $10,000 immediate medical coverage is given by the PIP insurer instead of going through the tedious process of determining culpability through the judicial system.
Normally, when someone gets into a car accident, the plaintiff will have to inform the insurer of the accident, seek medical treatment, and gather as much evidence as possible before they can be submitted to the insurer. For their part, the insurance company will conduct their own investigation and determine who is at fault before making any attempts to provide compensation.
In most cases, the insurance adjuster may look for ways to lessen the compensation they need to provide. All of these take time. Instead of the injured individual focusing on his treatment and continuing medical care, he will have to steadily make follow-ups with the insurer. Having Personal Injury Protection or PIP eliminates such ridiculously long and arduous process so the plaintiff can focus more on his treatment.
There is another benefit to having PIP. Because the case doesn’t need to be brought to the court system, more important cases can be heard by the judiciary. This helps allocate legal resources for more important cases.
Personal injury protection insurance can cover as much as 80% of the expenses related to the accident, but mostly related to medical care and treatments. This is often dependent on the stipulations of the PIP policy. Some PIPs cover for injuries suffered by passengers, service replacement for an individual who is injured in a car accident, the cost of rehabilitation therapy, and even funeral costs.
Personal injury protection (PIP) insurance gives immediate compensation to those who got injured because of a car accident. It doesn’t matter if it’s your fault or not as the system is designed specifically to give immediate answer to one’s medical needs as a result of the accident.