Automobile insurance features and requirements may differ from state to state. The personal injury protection is existing primarily in the no-fault states. This implies that if a person is injured in a crash, their insurance policy has to pay for their medical care irrespective of whether they caused the accident or the other driver did, provided that the insurance policy covers the accident. Nevertheless, if the other driver does not have insurance cover, the individual will still be covered on condition that his/her own policy covers personal injury protection. This form of coverage is affordable and in addition to ensuring medical care, it can also offer payments for child care, lost income, and funeral expenses which are related to the accident. These payments are not typically covered by an automobile policy’s medical expenses coverage. Medical payment coverage is available in a few of these no-fault states but usually has low limits. The highest a policyholder can receive from filing a claim under personal injury protection is the policy’s limit and nothing more.
States that require personal injury protection
Personal injury protection is a requirement in Washington, DC and about 15 other states. The states are Florida, New York, Kentucky, Delaware, Hawaii, Minnesota, New Jersey, Massachusetts, Utah, Michigan, North Dakota, Oregon, Pennsylvania, Kansas, and Texas. However, minimum coverage requirements may vary by state; the maximum amount depends on what the insurance firm is willing to offer, and this is usually not more than $25,000. When a policyholder’s health insurance coverage provides cover for rehabilitation and injuries associated with a vehicle accident, the policyholder perhaps only needs to buy the least amount of personal injury protection which is required by the state. Note that personal injury protection does not serve as a substitute for liability coverage that most states require and also pays for injuries that are caused to another party, like a pedestrian or driver and the occupants of another automobile.
Personal injury protection is a mandatory coverage in a few states, even though the coverage may vary in terms of what is covered by the policy and what kinds of treatments are deemed medically reasonable and necessary. For instance, in Utah, it is permissible to use acupuncture as a medical treatment, while in California this is not a requirement. In Texas, on the other hand, personal injury protection coverage will cover the medical expenses, as well as 80 percent of lost wages, and a person to take care of the incapacitated party. Some states may also permit personal injury protection claims even though a workers’ compensation claim is in existence, while other states do not. Also, some states personal injury protection is the first resort insurance to pay for all medical bills when a person is hurt in an auto accident.
In few states, the personal injury protection is subrogatable, and this implies that an insurance carrier will remunerate a loss, regardless of the liability, and then subrogate or recover what it paid from the insurance carrier of the party who is liable. This leaves the insured person in a better financial position, as his or her medical bills will be paid, and afterward, the insurance carriers will fight it out among themselves. Personal injury protection can cover, within its specified time and dollar limits, the funeral and medical expenses of an insured person, others in the car at that time of the loss and a first party where the person was hit as a pedestrian by any car. The initial coverage is for the insured person’s injuries, without regard to liability on a first-party basis. Again, this is only available in few states. A pedestrian who is hit by a vehicle is typically covered under the vehicle’s liability.
A lot of states that don’t have personal injury protection have auto medical payments coverage, but some states have both coverages. The AMP is a first-party coverage as well, without any regard to liability. However, it is only subrogatable in few states, and usually optional. The PIP and AMP limits range from about $1,500 to $250,000, although this is dependent on the state and the injury. Many insurance providers currently have a moderately low limit of approximately $5,000. A no-fault policy in Michigan provides extensive rehabilitation and medical benefits. Claimants who have been affected by an auto accident will be wise to submit their personal insurance information to the medical providers since third party carriers are not under any legal obligation to pay the claimant’s medical bills, but first party carriers are under obligation.
Third party carriers may be subject to payment after a judgment is given against them. Any payments which are made before that time are considered voluntary. Also, settling a claim with the third party carrier is deemed a voluntary payment.
What does personal injury protection cover?
Personal injury protection provides vital protection from the expensive medical costs after an accident. Since it is such a significant coverage, the policyholder must check the specifics of their work-loss coverage and health insurance plan. This can help to determine how much personal injury protection coverage to add to the existing car insurance policy. Personal injury protection coverage can only be claimed in certain states. Although the specifics can differ substantially by state, personal injury protection covers the policyholder, drivers listed on the policy, and the passengers as well.
In the case of any accident-related injury, this personal injury protection can cover the following;
Medical expenses and surgical treatment, as well as dental and optometric treatment, are covered by PIP. Some other expenses include nursing and ambulance services, medication, prosthetic devices and medical supplies.
Even though this applies in some cases, if the policyholder or his/her passengers are not capable of working due to the accident-related injuries, personal injury protection can help them recover the lost wages.
If accident-related injuries prevent the holder or those covered from carrying out household tasks, such as cleaning, PIP assists them and pays for alternative services, such as a cleaning crew.