PIP in insurance stands for personal injury protection. PIP is a type of car insurance that covers basic medical expenses for the policyholder after an accident, no matter who is at fault, and it is required in nearly all no-fault states.
Yes, you need PIP if you have health insurance and you live in one of the 13 states where PIP is required. If PIP is not mandatory in your state, then you do not need to purchase it, but it can still be a worthwhile investment even if you have health insurance because PIP provides additional coverage.… read full answer
PIP, or personal injury protection, is a type of car insurance that pays for medical expenses after a car accident. If you don’t have PIP and you’re injured in a car crash, you can use your health insurance to pay for medical bills. However, unlike health insurance, PIP also pays for indirect expenses resulting from covered injuries, such as lost income, childcare expenses, and household services. Lastly, PIP applies to passengers in an insured vehicle, so it can be useful if you’re driving someone who does not have health insurance.
To learn more, check out WalletHub’s complete guide to PIP insurance.
Personal injury protection (PIP) insurance covers medical expenses, lost wages, and household expenses after a covered driver or their passengers are injured in a car accident. PIP is a versatile type of insurance because it covers both medical bills and indirect costs stemming from injuries sustained in a car accident. PIP stands for personal injury protection, and it can be used after any crash, regardless of who was at-fault.… read full answer
What PIP Insurance Covers
Child care and household expenses
Survivors’ loss for dependents
Named drivers on the policy and their passengers
The exact details of PIP coverage may vary depending on the state and policy. For instance, some states may require you to have a deductible, and other states require specific PIP limits for funeral expenses, rehab expenses, or loss of income.
For more information and to see if PIP is required in your state, check out WalletHub’s complete guide to personal injury protection.
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. For example, $10,000 in PIP coverage will ensure that you're covered for at least basic medical expenses and some lost wages.… read full answer
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.
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