Personal Injury Protection (PIP), otherwise known as No-fault Auto Insurance, is a type of auto insurance that covers hospital bills, lost income due to an accident, upkeep expenses, ambulatory fees, and funeral expenses. In essence, PIP covers anything related to personal injury. Insurance companies, however, will only pay benefits that are predetermined by the policy and the amount of premium paid.
As mentioned earlier, PIP is also known as No-fault Auto Insurance. Several misunderstandings may arise from this term – the phrase “no-fault” does not mean that it only applies to the driver who is not at fault. There will always be someone at fault in an accident regardless of the circumstances. This term simply means that the policy-holder is given the opportunity to file and get their claims without waiting for the car insurance company to establish who at-fault is. In essence, the driver is able to utilize financial aid from his insurance company even if he is the one at fault.
PIP is highly advisable to drivers who commonly have passengers, such as those involved in carpools. In case an accident happens, the driver is assured that the cost of his medical expenses as well as his passengers’ will be covered. PIP also works in a situation such as when a driver is hit by a vehicle while outside his car. As long as the driver sustains bodily injury, PIP will cover expenses when the help of also medical professionals is needed. PIP thus protects the driver and his passengers from any financial trouble regarding this.
Another very helpful benefit of PIP is being assured of having immediate financial help in case of accidents. Without PIP, the usual procedure for insurance companies is to investigate the case to confirm which party is at fault in the accident. Often, waiting for the car insurance company until it finishes its investigation is tediously long and will not warrant you of getting help. It would also eventually be costly because the company will only give claims after determining who is at fault.
Granted, there are limitations to PIP, one of which is that the benefit that a policy holder will get largely depends on the amount of premium and deductible paid. It is therefore unwise to pick a low insurance premium and a high deductible. Doing so will not do you good financially, especially if you are at-fault with the accident.
There are numerous insurance companies offering PIP policies. All you have to do is check them out and compare. Again, be reminded not to settle for low premiums, or you might not enjoy its full benefits in the long run.