PIP — Personal Injury Protection Coverage
Another form of optional auto insurance coverage you can purchase to protect you, your family and anyone riding in your vehicle if you are involved in a wreck, is Personal Injury Protect (“PIP”) coverage. The coverage begins at $2,500.00 per person and may also be available at $5,000.00 or $10,000.00 per person limits, depending on your insurer.
PIP acts like health insurance or short term disability insurance for medical expenses or lost wages caused by a car accident. The rates for this coverage are slightly higher than Medical Payments Coverage, but PIP is still relatively inexpensive and a great investment. I highly recommend this coverage over Medical Payments Coverage.
1.) 100% of reasonable expenses incurred for necessary medical and funeral services; and/or
2.) 80% of a covered person’s documented loss of income from employment, up to your available per person limits.
Another good thing about PIP coverage is that it covers all occupants of your insured vehicle regardless of who was at fault in causing the wreck. However, PIP is only available to the named insured and the occupants of an insured vehicle.
Let’s look at some examples of how important these coverages can be for you and your family. What if you are riding in your insured car with your friends, and you have PIP coverage and are hit by another car? You and your friends in your insured vehicle would each have PIP coverage up to your available PIP limits.
What if you were riding with a friend who did not have PIP or UM/UIM coverage on their auto policy, and you were hit by another vehicle? You would still have PIP and UM/UIM benefits available to cover you for your losses under your own policy.
Let’s take that one step further. Assume that your child was riding with a friend’s family, and they were in a wreck where your child was injured and needed medical attention. What if the wreck was caused by the other driver, and the other driver was uninsured. What if the family your child was riding with had rejected UM/UIM and PIP coverage on their policy. How would you pay for your child’s medical expenses?
The good news is that as a member of your household, your child would be considered a covered person under your policy and would be entitled to coverage under the available UM/UIM and PIP coverages you purchased.
If you have any questions about your auto insurance coverage, or if you, a family member or friend has been injured in an accident and you are trying to figure out which coverages apply, please feel free to contact us at 214-559-7202. We will be happy to discuss with you the details of your case at no charge in a free consultation.