Personal injury protection, or PIP, is an optional coverage that people choose and pay for as part of their insurance premiums. PIP is a no-fault insurance policy that helps pay for medical expenses and lost wages regardless of who is at blame. We explain the PIP procedure and how it works to clients when they employ us.
Many clients’ initial question is, “Will it increase my premiums?”
Because PIP is a no-fault coverage that you pay extra for in your premiums, it should not increase your insurance costs. However, we have witnessed insurance companies raise their insured’s insurance premiums when a PIP claim is asserted in practice.
We usually urge our clients to communicate with their insurance agent to check if their insurance company will increase their prices if a PIP claim is filed, so that they are not blindsided by insurance companies increasing their premiums as a result of a PIP claim being asserted. In general, however, we rarely see our clients’ rates rise as a result of making this claim.
Does my insurance go up if I use PIP?
After a car accident, your PIP insurance costs should not rise, and your policy should not be canceled. As a customer, Florida Statute 626.9541 protects you by prohibiting insurance companies from raising premiums or discontinuing coverage without a legally acceptable reason. If an insurance firm fails to comply with this requirement, it may face legal consequences and fines.
Because PIP insurance is required in Florida, you have every right to take use of the coverage you’ve been paying for.
How does PIP work with health insurance?
Personal Injury Protection, or PIP insurance, pays for medical bills, lost wages, burial costs, and other expenditures in the event of an accident, regardless of who is at blame. PIP insurance, commonly known as no-fault insurance, has different coverage requirements depending on where you live.
Medical expenses
Ambulance services, medical and surgical treatment, hospital stays, nursing care, medication, medical supplies, X-rays, rehabilitation, prostheses, dental care, optical therapy, and chiropractic treatments are all covered medical expenses. In some states, medical expenses are reimbursed at less than 100%, leaving the consumer with a 20% “coinsurance” obligation.
Lost income
If you or your passengers are unable to work as a result of your injuries, PIP may be able to assist you in recouping some of your lost wages. If you’re self-employed and need to hire temporary workers, PIP may be able to help with part of the costs.
Household services
If your injuries prevent you from performing these tasks, PIP may be able to reimburse you for these costs.
Protection beyond medical care is generally optional, and coverage beyond medical care varies by state and insurance carrier, but PIP insurance can include various sorts of coverage, up to the policy’s limitations and after any deductibles.
What happens if you PIP?
According to the Florida Office of Insurance Regulation, PIP is required in Florida because it is a “no-fault” state. Under Florida Statute 627.736, you have 14 days after a car collision to report your injuries with a licensed medical practitioner.
Regardless of who is at fault, PIP coverage will cover a set amount of medical bills and lost wages in the event of a collision.
Compensation that may be recovered is limited to up to 80% of your medical expenditures, 60% of your lost earnings, and $10,000 in total per person. In the event of a fatality, you may be eligible for up to $5,000 in funeral expenses.
What is the recommended PIP coverage?
- Without regard to who was at blame in the accident, your auto insurance company will pay this sum for your medical bills (and, depending on your coverage, even lost income).
- Furthermore, after paying out this money on your behalf, your insurance provider will not seek restitution from you. Normally, when an insurance company covers your medical bills whether it’s health insurance or auto insurance they expect to be reimbursed if you receive money in the form of a settlement or judgment against the defendant or the defendant’s insurance company.
- As a result, personal injury protection provides a double recovery. Your insurance company covers your medical bills, as does the defendant’s insurance company, but your insurance company does not request recovery for the money they have paid out for you.
Our personal injury lawyers in Hagerstown and Frederick, MD, have encountered plans with PIP coverage of $5,000 or $10,000. We recommend that everyone purchasing an auto policy have $10,000 in PIP coverage. This way, you may rest assured that the first $10,000 of your medical expenditures (as well as any missed income) would be paid without question.
If you can afford it, you should acquire even more personal injury protection policy.
Will making a claim increase car insurance?
When it comes to determining whether or not your insurance rate will rise, the cost and severity of a claim are important considerations. When determining the cost of your automobile insurance policy, most auto insurers take your driving record into account. However, submitting a claim does not inevitably result in an increase in your insurance price.
How does PIP deductible work?
Consider your health insurance: If you have health insurance, do you need PIP? You may be able to choose a lower level of PIP coverage if you have good health insurance. If you know you’re already well-covered under your health insurance, this could be a fantastic way to save money. This is especially true if your deductible on your health insurance is low.
Consider your health insurance deductible: If you don’t have health insurance or are on a high-deductible plan and live in a state where PIP is optional, at the very least consider getting the minimum level of coverage. There is no deductible in most PIP states.
Know which sort of insurance pays first: When it comes to paying out a claim, PIP normally takes precedence over medical insurance. In most areas, if you are injured in a motor accident, your PIP coverage will take precedence over any health insurance you may have.
If you don’t have life insurance, add PIP: If you’re in a tragic car accident, adding PIP to your policy could assist your family cover unexpected costs.
Consider your missed wages: If you work in a physically demanding job, can you afford to lose time if you’re wounded in a car accident? If you don’t have PIP, you should consider adding it or increasing your limits because it covers lost pay (up to a specific amount and length of time).
Our vehicle insurance calculator can help you determine whether or not you require personal injury protection (PIP) and other types of coverage.
What if my state doesn’t offer PIP?
If PIP isn’t available in your state, you’ll have the option of adding medical payments coverage to your insurance. Medical payments, regardless of who is at fault, normally do not compensate lost wages but do cover burial expenses and hospital fees for you and your passengers in your automobile. Medical payments should only be used as a complement to your health or life insurance, not as a replacement. Coverage amounts vary by state, but they’re often $10,000 or less.
Medical payments can also be used to cover deductibles, copayments, and other out-of-pocket costs incurred as a result of a vehicle accident. You have complete control over how your medical payments are used. For your high deductibles and copays, you might want to explore using your health insurance to cover your medical bills and medical payments.
What is lifetime PIP?
If you or someone on your insurance is harmed, Personal Injury Protection (PIP) benefits provide unlimited lifetime coverage for all “reasonably necessary” medical and related expenses.
What will PIP pay for?
What is a Personal Independence Payment, and how does it work? PIP assists people aged 16 and up with the additional costs of disability or long-term health issues. It’s a benefit that isn’t based on your financial situation. So it doesn’t matter how much money you make or whether you have any savings or capital.
Do I need full PIP?
In most states, PIP is an optional benefit. 16 states, on the other hand, mandate you to have a certain amount of PIP coverage. Although your PIP insurance may overlap with your health or MedPay coverage, there are situations when having different plans is advised.
Do PIP watch your house?
Benefits investigators may be watching your home, according to Stuart Miller Solicitors.
They are permitted to park their automobile outside your home and observe who enters and exits the premises.
For example, you might be claiming PIP because you have a physical handicap that prevents you from working.
If the investigators believe you are able-bodied, they may wait outside your residence.
If they claim you walk easily and go to work on a regular basis, this is evidence against you.