Personal Injury Protection Insurance also known as PIP is an insurance coverage that is added to the auto policy. It is an extension of the auto insurance that covers medical expenses in case of an accident.
PIP insurance is not mandatory in all states of the US. Coverage options may vary depending on the state in which an individual resides.
Is it optional or mandatory?
Thirteen states in the US mandate personal injury protection insurance coverage and the individual has to find out how the insurance covers an eventuality in case of an accident in his or her state.
The states in which PIP insurance is mandatory are:
Thirty three states make PIP coverage available.
In certain states such as Washington and Texas, the insurance companies need to offer personal injury protection insurance coverage, but the insured is allowed to opt out of the coverage, in writing. The insured needs to write to the auto insurers or else the company shall charge the client for the inclusion of the personal injury policy.
Personal injury protection insurance pays for medical expenses, loss of wages, loss of services, and funeral expenses. The insurance covers medical expenses to treat bodily injuries during accidents. It can also be used to cover emotional distress compensation, pain & suffering, wage loss, funeral expenses, and mental injury expenses.
PIP is a no-fault insurance coverage; it should not affect the individual’s insurance rates. The PIP insurance comes to the rescue immediately after an accident and even if the claimant of the PIP benefit is found to be at fault for the accident, the individual is entitled to receive the coverage benefits.
The insurance covers the person named on the policy, kin related by blood, marriage or adoption, step or foster children, non-family passengers, and pedestrians involved in an accident.
Personal Injury Protection Insurance provides the following minimum benefits: