Personal Injury Protection Coverage: What It Is And When You Need One

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  • Post last modified:February 8, 2021

If you live in a no-fault state, then you might necessarily need to get Personal Injury Protection (PIP) Insurance for your car or motorcycle.

Though the regulations around PIP coverage varies from state to state, they are put in place to cover minimum expenses. Regardless, of the party at-fault for the damages.

But, what is PIP insurance, and how do you know if you need one? Thankfully, this article will help you seek answers to these questions and more.

So, keep reading.

What Is a Personal Injury Protection Coverage?

As already mentioned, under a PIP cover, you can expect your insurer to pay for the medical bills and damage repairs, even if you are not at fault.

However, it is also noteworthy that there are certain limitations to when your insurer would pay for the damages or bills.

The name also suggests the same, meaning, insurance companies will pay a minimum threshold compensation. But, only when the case is ruled under a personal injury claim.

That being said, it is also noteworthy that state regulatory authorities are in charge of deciding the threshold and minimum coverage requirements.

For instance, in Massachusetts, the minimum amount of cover required is $8000 for motorists.

Likewise, every state, as mentioned by insurance experts at Lopriore.com, has different regulations and thresholds. Thus, it will be better to know if your state also requires you to buy PIP cover.

How To Know If You Need PIP Coverage?

One way, of course, is by knowing if PIP covers are mandatory in your state. However, it does not mean that you shouldn’t get it, otherwise.

There are several extended benefits that a PIP cover can offer motorists. For instance, if injured seriously, you need not wait for the other party’s insurer to compensate for your claim. You can simply seek the treatment, which will be covered by your own insurer.

Perhaps, you should use a value-for-money test to know if you need the PIP cover. To begin with, you must evaluate your monthly income and expenses. And you must also get a clear picture of your emergency funds.

If you believe that you might have to seek financial help if met with a serious accident, then maybe PIP cover is what you should buy.

Notably, you must also take into account the premium that you’ll be paying. And, weigh it against the expenses you might end up covering after a car crash.

This should give you a clear picture.

Is There Any Difference Between PIP Cover And Medical Payments Cover?

Well, one obvious difference is written in bold, up here. A PIP insurance policy would cover anything that falls under the cap of personal injury. Whereas, it is not the same for Medical Payments Cover.

As the name suggests, a medical payments coverage is only meant to pay for medical bills. It may include the cost of medicines, hospital visits, therapy costs, and any other expenses needed for your speedy recovery.

However, you cannot expect your Medical Payments Policy to cover rehabilitation or lost wages. You might wonder, why would you need rehabilitation or lost wages cover from your motorist’s insurance.

Well, to put it simply, you do if you drive through accident-prone areas, regularly.

According to a survey report from WHO, road accidents are a leading cause of fatality. Nearly, 3700 people die every day in road accidents.

Well, the figure is self-explanatory that there are graver chances that you might end up with fatal injuries, or for the least, suffer an inability after the crash. And likewise, you might also have to quit your job.

In such a situation, PIP covers can be really helpful in restoring your finances, until you can rejoin the work.

Finding The Right Insurance Company…

Well, now that you deeply understand the importance and benefits of a PIP cover, motorists insurance policy, you might wish to get it too.

However, hasty decisions might harm you equally, as a well informed buying decision may benefit you.

So, it is rather important to find yourself the right insurer and the insurance policy to benefit your needs. And, save you your hard-earned money.

Begin with your search online

One of the quickest and easiest ways to find the right insurance company for your plan is by searching online. It is quite similar to seeking references from friends and relatives.

Only, that the people would offer the references, you don’t know. In other words, you will be offered references from authoritative sources but not necessarily familiar ones.

Notably, there are plenty of sources online that can help you identify the best plans for you. For instance, you can search ‘PIP cover Massachusetts’ and find amazing listings.

It is also noteworthy that several vendors would give you a list of insurance companies that may endorse your plan.

Enquire about the premiums to pay

Once you find a suitable platform that can offer you a catalog of insurance plans available to you, it is time you look for the premium to be paid.

Not every insurance company would offer you the same benefits, and likewise, they won’t also ask for the same premium always. In most cases, the premiums increase with the depreciation of your motor vehicle.

However, the rate of increase in premiums to be paid also varies from company to company. Thus, you need to compare all these aspects when comparing the policies available to you.

To Sum It Up…

Buying a PIP cover for your motor insurance can offer several benefits over third party insurance. It costs, more or less the same while offering you higher value for money. And, of course, saving you from facing difficult financial situations.

It is advisable to compare the plans and then buy one that befits your needs and budget. It needs no mention that buying insurance is just like buying a car.

You research, compare, and evaluate pros and cons, apart from looking for good customer service. Only then do you make up your mind to buy the car. In a much similar way, you research and compare insurance plans before buying them.

When you own something too valuable (we’re talking about your life), you would do everything in your power to protect it.

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