What are Personal Injury Protection and Its Benefits?

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What-are-Personal-Injury-Protection-and-Its-Benefits

Have you ever heard of a car insurance policy? What most of you are not aware of is that a car insurance policy constitutes a personal injury protection coverage. This policy provides financial assistance which helps coverage of medical expenses and employment loss coverage as well in the event of a car accident despite the fault.

This is why it is often considered as a beneficial coverage as it conforms to your needs regardless of who is accountable for the accident. It is protection that goes beyond the coverage of a single injury expense. So let us know more.

What is Personal Injury Protection?

PIP refers to a kind of auto insurance that can be availed in states with no-fault. This coverage can be beneficial because it provides one with a great opportunity to recover the costs when one has forced to bare high medical expenses for treatment that has been caused by a car accident.

Moreover, this insurances provides coverage which is not only limited to medical expenses. It also offers benefits which will ease the financial burden of paying some of the high costs that are inevitable after a car accident or car crash.

There are minimum coverage requirements for injury protection. It is important to note that due to rising expenses of health care and medical treatment, the minimum coverage may not be sufficient to cover the expenses that need to be covered following an accident.

However, given that the opportunity is available, it is important and highly recommended to purchase the insurance that will provide higher and sufficient coverage to cover the high costs associated with medical treatment.

In most cases, the protection covers only the minimum requirements. Even if your injury is fatal, your minimum coverage law will only be of minimal assistance which may not be enough to cover the whole treatment. So it usually recommended going for a PIP coverage that extends beyond the minimum. 

10 Benefits of Personal Injury Protection

The country you live in serves as a great contributing factor in determining the auto liability insurance laws. There are 4 various categories of auto liability insurance laws which varies strongly based on your origin. 

No-fault:

It is considered as a requirement in no-fault conditions. Which means under this system, any claim made by an individual will be covered by their own insurance company right after the accident.

However, there are some limitations, which restricts you to sue or file a case against another driver who is accountable for the collision.

Tort Liability:

This category ensures payment of your claim by the insurance company of the driver accountable for the accident or collision. It is preferred because it does not also put any restriction on your rights to sue.

Choice no-fault:

This category allows the drivers to select between options of no-fault and tort liability.

Add-on:

Similar to no-fault insurance, add-on insurance policy says that the claim must be mandatorily paid by your own insurance company regardless of who caused the accident. However, the add-on category has the edge over the no-fault insurance as it does not consist of any suing rights limitation. 

This kind of protection policy is, however, only provided in certain countries. Otherwise, you may need to purchase this insurance coverage even when you have access to any similar kind of protection policy. 

PIP Coverage:

Similar to other types of auto insurance, the coverage provided by the Personal Injury Protection will depend on the insurance that insurer has purchased.

The cost of personal protection will depend on several factors. Those include the type of coverage that the insurer wants, the age of the insurer, and the model of the car.

Based on what the insurer chooses and options available in the state, the expenses listed below will be covered by the Personal Injury Protection. However, it is important to understand that coverage provided by it will differ from state to state.

Medical Bills:

Following an accident, medical bills are inevitable. Moreover, the bills tend to be high due to the rise in the cost of medical services. As a result, this can result in a tremendous financial burden for the patient.

However, the Personal Injury Protection can be convenient at such occasions. The PIP will provide coverage for the medical treatment up to the limits of the coverage purchased by the insurer.

In addition to covering the medical expenses of the insurer,   this insurance will also provide coverage for paying the medical bills and costs of the others listed on the insurance policy.

Moreover, the PIP is not only limited to accidents in which the insurer is behind the wheels of a car. This insurance is also applicable if the insurer has been struck by a vehicle while s/he is riding on a bicycle or walking on the street or the road.

Lost Wages:

If someone is not fit to work due to an injury caused by a car accident, it may significantly affect the person’s income and ability to pay the bills for day to day necessities such as food and utility expenses.

For some instances like this, PIP will pay for these necessities by providing coverage for wages that were lost due to not being able to work because of the accident.

Rehab Costs:

If any individual requires rehabilitation treatment due to an accident injury and may not be able to pay off their treatment expenses, a PIP insurance will provide just what they need to provide coverage for the costs.

Household Services:

The person may need assistance to do some things such as cleaning.  Moreover, if that person is a parent, then he or she will also require help with childcare as well. As a result, the cost associated with hiring these services will be covered by the insurance.

Death Benefit:

If a car accident results in death, a death benefit may be provided to the family of the person.  This payout will help the family members to pay for the medical bills and funeral expenses.

Conclusion

This article provides clear insights into the benefits and requirements of personal injury protection laws. If you ever consider yourself a victim of a car accident and you are sweating over your expenses, opt-in for PIP. This insurance policy covers more than you think. Go ahead and explore your options!

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