Do You Need PIP (Personal Injury Protection)?
PIP (Personal Injury Protection) is additional insurance you purchase when you buy car insurance. PIP is a no-fault coverage. PIP will cover your medical bills even if you were at-fault for the collision. It will also cover your passengers medical bills as well.
While purchasing PIP is not required under the law, it is probably the 2nd most important coverage you can buy. As you know, Liability coverage is required under the law and is the most important coverage you can buy. While many people have health insurance, it’s often not enough. In many cases, if you are injured, you will need months of weekly therapy treatment. Unfortunately, health insurance covers a only limited number of visits per year, usually 10-12. The average client usually ends up needing closer to 40 visits over a 6 -10 month time period. PIP also pays for chiropractic care, message therapy, physical therapy and acupuncture. There is no preset limit to the number of visits you can have as long as the treatment is related to the injuries you sustained in the car collision.
I always recommend that clients have at least a $35,000 in PIP coverage. While this may sound like a lot. The initial hospital visit can be in excess of $7,000. Hospitals will want PIP to pay your medical bills because your PIP Insurance usually pays at a higher rate than your health insurance. Your health insurance pays your provider the “contracted” or a reduced rate.
PIP also pays for “Lost Income” and many times “Loss of Essential Services“. If you are too hurt to clean your home or mow your lawn, with a referral from your doctor you can get reimbursed for hiring someone to help you do the heavy labor at home you would have normally done without assistance.
PIP is NOT expensive. To increase your coverage from $10,000 to $35,000 per incident, it’s usually less than $15 -$20 every 6 months. I am always happy to discuss insurance coverage with my clients, friends and family members. Again, PIP is cheaper than health insurance!!! You are more likely to be involved and/or injured in a car accident, than suffer a serious personal health issues.