Personal Injury Protection PIP Demystified

Being involved in an auto accident can be an expensive ordeal with medical payments, loss of wages and the need for assistance around the home, childcare and even funeral expenses. Most drivers today purchase the minimal amount of car insurance required by their state of residence which may not cover compensating you for those losses. Having Personal Injury Protection coverage can cover those claims which exceed the limits of the driver's basic insurance policy.

Personal Injury Protection payments can range from $1,500 to $250,000 depending on the state. Fifteen states require Personal Injury Protection, including “no-fault” states. Your coverage may extend beyond yourself and can include your relatives living in the same household, passengers, other authorized drivers, policyholder and family members if injured in another vehicle, or if struck while walking.

PIP coverage is most helpful to people who do not carry health insurance coverage sufficient for the above situations.