Some states in the U.S. require or offer no-fault insurance, otherwise known as personal injury protection. PIP allows you to file a claim to your own provider after an accident.
If you’ve ever been in a serious car accident, you’ve probably experienced the stress that comes with watching your medical bills pile up and your paid leave checks run out while you wait for a lawsuit against the at-fault driver to process, which can take anywhere from months to years.
In an effort to curb the stress and lawsuits, some states in the U.S. require or offer no-fault insurance, otherwise known as personal injury protection. PIP is an extension of your car insurance policy that allows you to file a claim to your own provider after an accident. Your provider will cover the cost of your medical bills and lost wages, regardless of whether or not you were at fault. It eliminates the stress and uncertainty of navigating the at-fault driver’s insurance provider for compensation. Because many felt that PIP insurance challenged their right to file lawsuits, each of the states which require it have written ensuing laws to allow policyholders to file under specific circumstances only.
Currently, PIP is only mandated by law in 12 states across the nation including: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah. Of these states, only Kentucky, New Jersey, and Pennsylvania allow policyholders the option to opt-out of no fault insurance in favor of at fault, or tort, coverage. New Hampshire and Maine require insurance policyholders to carry medical payment coverage, often referred to as MedPay. Take a look at the interactive map below to see what kind of PIP options your state offers.
While most car insurance covers damages to your car or another vehicle, your coverage, including liability, will never cover your own or your passengers’ medical bills. Even if you have health insurance, this can’t be used to cover your passengers’ expenses and might not even be enough to completely pay for your own if it exceeds your deductible. Medical payment coverage and PIP would not only cover your costs, but also your passengers’. PIP also goes the extra mile by compensating you for lost wages while you’re recovering from your accident.
Just because you aren’t considered at-fault doesn’t mean your insurance premiums won’t go up after a claim. Changes in rates all depend on the frequency and severity of your bodily injuries and property damages, whether or not you’re to blame for these incidents. Therefore PIP insurance can be quite expensive compared to at-fault coverage. So, if no-fault insurance is required in your state or it’s something you’ve been thinking about adding to your policy, it’s extremely important to compare quotes from multiple companies so you can be confident that you’re getting the best deal. Insurify.com allows you to customize your policy and unlock discounts from a number of different providers online in minutes.