Personal injury protection (PIP) insurance 101

Personal injury protection (PIP) insurance

An automobile accident damages your property and can result in high out-of-pocket spending for medical care and can lead to a large debt. These financial, emotional, and physical stressors can have far-reaching negative impacts beyond those immediately involved in the accident to their families. Medical bills, lost wages, travel expenses, deductibles, copays, and other expenses can add up quickly and put a severe dent in your bank account. Personal injury protection (PIP), also known as PIP insurance, can help meet such expenses after an accident.

What Is Personal injury protection (PIP) Insurance?

PIP is a no-fault coverage required in seventeen states, it pays for medical expenses, possibly wage loss for the insured and their passengers. PIP Insurance may pay for medical costs you might also incur as a passenger in another vehicle, a pedestrian, cyclist, etc.

First-party medical coverage covers your medical expenses regardless of who is at fault.

No fault means that everyone involved in an injury-related accident must file a claim with their insurance company regardless of who caused the accident.

Alternatively, fault or tort states assign blame/responsibility for the accident. Whoever is determined to be at fault is responsible for the damages caused by the accident.

PIP was conceived for automobile accidents and may cover injuries that your health insurance and medical payments coverage may not.

PIP insurance does not extend its coverage to occupants of other vehicles involved in the accident.

Bodily injury liability insurance covers occupants of other vehicles if you are at fault in a collision.


What Does Personal injury protection (PIP) Insurance Cover?

PIP insurance covers the owner, passengers in their vehicle, family members residing with the owner/policyholder, and people driving the vehicle with permission from the owner. The policyholder may be covered if a pedestrian, passenger, or cyclist is injured.


Personal injury protection (PIP) can cover:

• Medical expenses: PIP) can cover medical treatment, medical procedures, dental and optometric treatment, ambulance and nursing services, medication, medical supplies, and prosthetic devices.
• Lost wages: If your accident-related injuries prevent you from working, PIP could help you recover lost wages.
• Substitute services: If your accident-related injuries prevent you from performing household tasks, like cleaning, PIP could help pay for cleaning services.
• Funeral expenses: If accident-related injuries result in death, PIP could help pay for funeral expenses.


What is not covered by Personal injury protection (PIP) coverage?

PIP insurance does not cover costs that are not related to personal injuries:
• PIP insurance does not cover damage to your vehicle.
• PIP insurance does not cover damage to other people's property.
• PIP insurance does not cover medical expenses and lost wages that exceed your policy limits.


How is PIP coverage different from medical payments coverage?

Medical Payments, also known as Med Pay, will cover the medical payments of you and your passengers if they are injured in a crash. PIP includes medical payments coverage but also may cover other documented losses such as your lost wages.

You may also be required to repay benefits you received under your Medical Payments insurance coverage if you receive a settlement from the at-fault driver's insurance company. However, there is no subrogation right as to PIP benefits.

William John DiPetrillo & Associates, P.A. offers free consultations. We have over 24 years of experience in Personal Injury settlements and is a member in good standing of the Florida Bar Association.