Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 24, 2020

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Things to Remember...

  • PIP insurance is an important type of auto insurance coverage
  • This policy covers the driver and passengers if they are involved in an accident
  • PIP coverage is not mandated in every state in the USA

There are different types of auto insurance. One important type is the personal injury protection insurance. This policy covers the driver and passengers of a car in case of an accident.

There are certain states in the US that consider this coverage as optional while there are those that consider it mandatory.

There are many people who think that they don’t need it because they feel that injury liability insurance covers them if they have an accident.

Instead, liability covers the driver and the passengers in the other vehicle while personal injury protection covers the policyholder and their passengers.

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What is PIP auto insurance?

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PIP is an auto insurance coverage that applies a driver as well as passengers inside the car when an accident occurs. The payment made in this policy is done regardless of fault, and that’s why it’s called a no-fault policy.

However, it’s a requirement that is mandatory only in a few states.

The coverage protects against emergency care medical expenses. This can be very high, especially if there is a need for hospitalization. Personal injury protection protects the holder and provides additional benefits even to those with health insurance.

One other benefit of having a PIP coverage is that the holder is even protected from lost wages. Accidents can injure people to an extent that they may require hospitalization.

This may prevent the injured person from conducting their everyday duty that earns them an income, including going to their jobs. PIP insurance covers the holder to a certain amount from the lost wages.

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PIP Auto Insurance Requirements

There are certain auto insurance minimums that a PIP insurance cover holder should possess. States have different laws concerning that.

Drivers from such states will be held liable when an accident happens in states that have a mandatory requirement for personal injury insurance.

It is in the interest of a driver to ensure that they have PIP insurance in states that do not have a mandatory requirement.

This can be very helpful when a person does not have health insurance or even a limited one.

There are many types of auto insurance. The biggest difference between those types of coverage and PIP insurance is that the latter is mostly designed to cover the driver and passengers while the other coverages are meant for other people who may also be injured in an accident.

PIP Auto Insurance Laws

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However, the auto insurance laws governing the policy vary from one state to another.

In the state of Washington, you are supposed to decline PIP coverage in writing when an accident occurs. If you fail to do so, you would be charged for medical bills at your expense.

When taking the policy a person should ensure that they check the details of the policy well.

There are some PIP policies that cover the insured as well as family members.

Generally, the policy covers:

  • Passengers
  • Pedestrians
  • Non-family members who are injured in an accident

A person injured in an accident should discuss the policy with them so that there is no misunderstanding and development of a perception that the pedestrian is working against the moves of the owner of the policy.

They should ask for relevant information that they may need, including:

  • The name of the insurance company
  • The telephone number of the claims’ officer
  • The policy number of the holder

Before taking a PIP insurance coverage, there should be a determination of the maximum limit of the policy.

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PIP Auto Insurance Tips

If you’re involved in an incident, the claims’ officer should be contacted immediately, and the matter reported. The conversation may be recorded for future reference and as a record.

The claims’ officer will prepare the relevant documentation for processing of the coverage and ensure that needed fees are paid in relation to medical bills.

The claims file is prepared after which the insured can ask for the necessary coverage for healthcare expenses as well as lost wages.

PIP has greater coverage than most health insurance. The policy covers the driver, relatives, and passengers in the car when an accident occurs.

There are several advantages that come with getting the policy, which include faster medical care because healthcare expenses are paid for without regard to who was at fault.

Those who don’t have the policy or medical insurance will have to look for the few medical centers that accept third policy payments or dig into their pockets to get the required money to cover their hospital expenses.

There are different types of coverage which can be offered with PIP:

  • Bodily injury liability
  • Collision coverage
  • Personal damage coverage
  • Personal damage liability

Most insurance companies offer PIP coverage at very affordable rates and all drivers have no excuse not having it.

PIP auto insurance is highly recommended for drivers that do not possess health insurance cover as it provides a safety net against unforeseen contingencies.

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References:

  1. https://www.nationwide.com/personal-injury-protection.jsp
  2. https://www.statefarm.com/claims/resources/auto/pip-and-mpc-forms
  3. http://www.iii.org/articles/how-do-i-file-a-claim.html
  4. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability
  5. https://www.geico.com/information/aboutinsurance/auto/
  6. https://www.esurance.com/info/car/bodily-injury-and-property-damage-coverage