Car Insurance Term: Personal Injury Protection (PIP)

Posted in Auto Insurance

February 26th, 2009

If you’ve been driving for a while and are familiar with the basics of car insurance, then you know you’re required to have it so that you (and your insurance provider) can pay for any damages and costs incurred by a driving accident that is your fault. What’s not covered by typical car insurance, however, are any damages or injuries and medical costs that happen to you if you’re at fault. So, many people get personal injury protection coverage (also known as PIP.) Some states require personal injury protection, while others do not.

Personal injury protection makes a lot of sense, because it adds an extra layer of financial protection to the person who purchases it. It is especially smart if you don’t have health insurance, because it will cover your medical expenses and oftentimes other related expenses due to an accident, such as lost wages. Of course, the amount of medical bills and lost wages personal injury protection will cover will be determined by the coverage limit you choose. In general, the higher your monthly premium, the more personal injury protection you will receive if you have an accident that results in injuries. Personal injury protection will also, in most cases, pay for the medical expenses (incurred by an auto accident) of people that the plan purchaser designates, such as other family members; people driving with the purchaser; and other drivers as chosen by the purchaser.

The rules and regulations surrounding personal injury protection vary from state to state, so if you are thinking about getting it but aren’t sure how it works, or whether it’s even available to you, be sure to call or sit down with an automobile insurance expert and explore all your questions in as much detail as you need. After all, when it comes to protecting yourself and your family you can’t have too much information.

Here are other important auto insurance terms you should know:

1. Property Damage Liability
2. Bodily Injury Liability
3. Comprehensive Auto Insurance