How much PIP insurance should I have?

Question

Your insurance rate probably won’t go up if you use PIP coverage. Whether or not your insurance costs go up depends on who is at fault in the accident that leads to the use of PIP. When you are not at fault and you make a PIP claim, you will receive payment from either your insurance company or the other driver’s insurance, and your rate will not increase.… read full answer

However, if you are found to be at fault in an accident after which you use your PIP, your insurance rate will likely increase, in most states. This is because most insurance companies reassess policy holders’ records consistently to analyze risk. If you are involved in a car accident and you are found to be at fault, the insurance company will consider you a higher risk driver than before and will likely increase your premium as a result. The amount your rate might increase will mostly depend on your insurance company.

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Answer 1 · 2021-04-04 18:08:59

WalletHub, Financial Company

@WalletHub • 04/04/21 This answer was first published on 04/05/21 and it was last updated on 04/04/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You should have $2,500 to $30,000 in PIP coverage per person in states that require personal injury protection (PIP), though exact requirements vary by state. Even if it’s not mandatory in your state, you should purchase as much PIP coverage as you can comfortably afford.

Personal injury protection pays for your medical expenses after an accident, regardless of who was at fault. As a result, purchasing higher limits can better protect you against hefty expenses that may result from injuries.

What to Consider Before Purchasing PIP Coverage

When deciding how much PIP to purchase, you should consider how much coverage you can afford as well as the coverage offered by any health insurance that you have. If you have a reliable health insurance policy, you may be able to purchase lower PIP limits, since the coverage overlaps in some areas.

However, you should keep in mind that PIP also covers certain long-term expenses that don’t typically fall under health insurance, like lost income and household services. Additionally, PIP can help cover the deductibles and copays that you’re typically required to pay with health insurance, so you’ll have fewer out-of-pocket costs.

To learn more, check out WalletHub’s guide to personal injury protection.

Answer 2

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What to Consider Before Purchasing PIP Coverage

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