Car insurance permeates everyone’s life who owns a car. And it should, because at least basic car insurance is required for everyone who owns and operates a vehicle in the United States. But I’m going to give you a compelling reason why more than just basic car insurance should be on your mind. That compelling reason is made up of three small, simple letters; P-I-P.
PIP means Personal Injury Protection
Personal Injury Protection is an amazing benefit that is offered in almost every state. It is often referred to as PIP. The two terms are and can be used interchangeably, so it doesn’t really matter which one you use. As you may have guessed, Personal Injury Protection is an optional coverage offered by almost all insurance companies. It can be substituted for Medical Payments coverage in a car insurance policy.
PIP is not to be confused with other full coverage offerings
Personal Injury Protection is not collision coverage and it’s not comprehensive coverage; it’s not a coverage protecting the insured’s vehicle at all. PIP actually serves two excellent purposes; it repairs injuries sustained by passengers in a vehicle regardless of who is at fault. It also can provide additional benefits like paying for lost wages!
PIP and injuries
Regardless of who causes an accident, Personal Injury Protection will pay for medical bills up to its limit for every person who is traveling in a vehicle. It doesn’t matter how the injuries were sustained. If people are in a vehicle and those passengers sustain an injury, PIP will always apply. The limit of PIP coverage is a per person limit. For example, if PIP has a limit of $5,000, then it will cover up to $5,000 in medical bills for each person who sustains injuries in the vehicle.
PIP and lost wages
One of the most compelling reasons to add Personal Injury Protection to your car insurance is that its coverage doesn’t stop at medical bills; it will also pay for lost wages! Suppose you sustain an injury that keeps you from work for a week. As long as you have a high enough PIP limit, it will also cover the wages you lost as a result of being out of work. PIP is the only optional car insurance coverage that will extend all the way to protecting you from work-related monetary losses. It’s a pretty exciting coverage!
Personal Injury Protection works a little differently in every state, so it’s important to talk to a local insurance agent before you jump to conclusions about what PIP covers in your state. Some states are much more generous about work-related pay, and others will only pay out a certain percentage of earnings. Regardless where you live, PIP is an excellent coverage that can be very beneficial on car insurance policies.