While most states do not offer or require personal injury protection, popularly known as PIP. If you live in a no-fault insurance state, you must have a minimum PIP coverage of $2500.
The minimum coverage level varies by state. In some jurisdictions, you can opt for greater coverage for increased protection against medical expenditures and lost wages if you or your passengers are harmed in an auto accident, regardless of responsibility. The amount of PIP coverage you need is often determined by how your health insurance plan covers you.
Personal injury protection may not be essential if you have health insurance. If you live in a state that mandates PIP coverage, you might opt for the bare minimum if your health insurance plan adequately covers you.
Also, consider the amount of your health insurance deductible. If your health insurance deductible is modest, you could choose a higher deductible on your PIP coverage to lower the cost of your auto policy. PIP, on the other hand, PIP does not have a deductible in most states, so it may be a good option if your health insurance plan has a high deductible.
If you don’t have health insurance, PIP may be a cost-effective option to cover medical and rehabilitation costs incurred from an auto accident. If you don’t have life insurance, PIP may cover burial costs and other expenditures up to the limits of your policy if you’re in a fatal car accident.
Keep in mind that, even if you have health insurance that covers your medical expenditures, most policies do not cover lost wages or assist pay for activities you can no longer provide, such as housekeeping or childcare. To the policy’s limits, personal injury protection may pay for those treatments and give advantages that many basic health plans do not.
PIP takes precedence over health insurance when paying out on a medical claim in most areas. That implies that your auto policy’s PIP coverage will take precedence if you’re hurt in a car accident, and your health insurance plan will be secondary.
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