Personal Injury Protection (PIP) is a type of insurance that deals with injuries sustained during an automobile accident. PIP is sometimes referred to as “no-fault” insurance because it provides coverage regardless of who is at fault for the collision. It covers the medical expenses of any persons involved in an automobile collision, including payments that a health insurance policy may not.

In addition to funding 100% of medical bills up to that PIP policy’s coverage limit, this insurance covers 85% of work-loss wages. Car repairs are not included in PIP coverage; an individual’s collision policy deals with the costs of vehicle damages when that person is at fault, and liability protection covers the medical and property damage expenses of the third-party not responsible for the crash.

What Does PIP Insurance Cover?

PIP typically safeguards the costs of any necessary medical treatments relating to injuries endured in an automobile accident, though this can vary from state to state and by policy plan. Coverage may include:

  • Physical therapy or rehabilitation
  • Ambulance charges
  • Hospitalization costs
  • Necessary medical procedures, including surgeries and operations
  • Ongoing professional care
  • Lost wages if the individual is unable to work or fulfill duties
  • Death benefits and funeral costs

Do I Need PIP?

PIP is a separate part of a policyholder’s auto insurance. Some states require PIP insurance or some form of it up to a certain threshold, though in many states it can be waived.

Depending on a person’s health insurance, the minimum legally required PIP coverage plan may be sufficient; however, PIP typically precedes most health insurance plans’ coverage, so PIP may be a more affordable option for covering medical expenses resulting from a collision. A policyholder who opts for a higher deductible on PIP coverage can consequently lower the cost of their auto policy.

The Advantages of Increasing a PIP Plan

  1. The more medical payments that PIP covers, the more that can be collected as claim payout at settlement.
  2. Lost wages can be received within weeks of the automobile accident rather than payments being delayed by months while awaiting final settlement.
  3. Unlike collision insurance where auto policy rates will increase when used, PIP does not raise rates after an automobile accident that results in injury.

About Excelsia

Born in 1993, Excelsia Injury Care’s mission is to restore quality of life through patient-centric care and support for those injured in a motor vehicle or work-related accident. With 60+ patient care centers across Maryland, Washington D.C., Pennsylvania, Virginia, Delaware, and Missouri, our vision is to be the leading provider of injury care, setting the standard of excellence in the communities we serve.

At Excelsia, we offer the full continuum of care with an integrated care delivery model. Our diverse team of medical specialists provides the full spectrum of treatment, including physical rehabilitation, medical care, and other ancillary services. We are committed to supporting patients through prompt treatment, successful recovery outcomes, and full management of the complex insurance claim reimbursement process. At Excelsia, your clients are never far from the care they need with the compassion they deserve.

Source: Trotter, Cody. “Personal Injury Protection Car Insurance.” U.S.News, U.S. News & World Report L.P., 15 Feb. 2024