Auto Insurance in NJ : What is PIP (Personal Injury Protection) Coverage?

When shopping for automobile insurance, it is important to learn as much as you can. One part of insurance that you may not understand is Personal Injury Protection Coverage. Often shortened to PIP, this insurance is required in many states. Other states give you the option of choosing whether or not you want this as an add-on to your other coverage.

So, what states require PIP Insurance?

If you live in the following states, you will need to protect yourself with PIP insurance:

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah
• Puerto Rico

What is Personal Injury Protection Coverage?

This insurance, also known as no-fault insurance, is used to help cover certain expenses that can occur with a car accident, no matter who caused the accident. It can cover medical bills, lost wages, and even funeral costs.

What does it cover?

• Medical Expenses. PIP will cover your medical bills, along with any passengers that were in your car during the accident. It may even cover the cost of your deductible.
• Loss of work. If you are injured enough that you have to miss work, your PIP coverage may help to cover the cost of your lost wages. It can even help if you are a business owner. It may cover the cost of hiring employees and independent contractors to help you keep your business on track while you recover.
• Funeral expenses. If you or someone in the car was killed during the accident, this extra coverage will help to pay for any funeral costs. It may even help to cover your burial or cremation expenses.
• Survivor’s Loss. If you don’t make it out of your automobile accident alive, your coverage will help your relatives deal with your lost income.
• Expenses for home care. If you are unable to do certain home care activities such as cleaning your home or taking care of your children, you may be able to get some extra money to hire someone to do them for you.

What doesn’t it cover? 

Though it can help with medical bills, it doesn’t cover everything. It won’t cover:

• Damage to property
• Any injuries to people in the other vehicle
• Any injuries that occurred while you were fleeing from a crime
• Any injuries that occurred if you were being paid to drive

Why should you invest in Personal Injury Protection Coverage?

If you live in a state that requires PIP coverage, you don’t have a choice. If you live in a state where you can choose whether or not to get this extra coverage, you should consider it for these reasons.

• If you don’t have health insurance, you definitely need this extra protection. You could have thousands of dollars in medical expenses, plus lost wages, and other expenses that may go along with your accident and injuries. If you live paycheck to paycheck, this coverage could really keep you from losing everything.
• Even if you have health insurance, you should consider PIP insurance. You will be required to submit your claims to your PIP insurance. Once that is fulfilled, then your health insurance will cover the rest of your expenses.
• You will have the added security of knowing that you are protected, even if the other person is at fault for the accident. You don’t have to rely on the other driver’s insurance to see if your medical bills will be covered. It helps to know that you are going to get the money that you deserve after the accident.
• You are protected, even if you aren’t driving. PIP insurance will follow you. If you are riding in someone else’s car, your PIP insurance will take care of you if you get into an accident. If you are hit by a vehicle while you are walking down the road, you are covered.

Though you may be unsure about whether or not you want to add PIP insurance, you should definitely consider it. It can pay out thousands of dollars that you may need to get the medical care that you need so that you can get back on your feet quickly and easily!

If you want to make sure that you have enough insurance, don’t hesitate to contact us today. We will be glad to help you find the right coverage at the right price for you and your family.