What PIP Covers
PIP insurance covers a multitude of scenarios that might arise if you’re injured in an auto accident. It not only helps with medical bills but also provides some financial security: in the event that you can’t work or, worse, pass away, your PIP can help replace your lost income.
Medical and other expenses after a car wreck could also wreck your finances, so you might want to consider purchasing PIP coverage beyond what’s required or even if it’s not required. Drivers named on the policy and their passengers are covered. PIP will also provide benefits for named drivers if they’re injured as a pedestrian/cyclist or in someone else’s car.
PIP benefits are often limited to three years from the date of the accident. A very important caveat: You must make sure you understand the details of your plan and its coverage limit, or the maximum amount your insurer is obligated to pay out following an accident. Different PIP plans can set different amounts for each of the following benefits.
PIP coverage pays for medical care like ambulance services, hospital bills, medications, rehabilitation, medical equipment, and prosthetic devices. It may also help pay for your health insurance deductible.
If your injuries mean you can’t work, some PIP plans provide reimbursement of up to 80 percent of your income.
Essential “Substitute” Services
PIP may pay for other expenses you have after a wreck, such as childcare, house cleaning, and yard work. Be sure, though, that you understand the hourly rate your PIP plan is willing to pay for such services.
Funeral Expenses and Accidental Death Benefits
Hopefully, you won’t need these benefits, but in the worst-case scenario, PIP insurance pays for funeral expenses. (Strangely enough, dying isn’t cheap.) PIP may also help protect your surviving family members by replacing some of your lost income.