Personal injury protection coverage (PIP) is a type of car insurance that may be added to your automobile insurance policy that basically benefits you and your passenger(s) if your vehicle is involved in an accident no matter if you are the individual that caused the accident or the accident was caused by another driver.

PIP insurance is a no-fault insurance.  This means the insurance company pays out without first making a determination of which driver was the one that actually caused the accident.  Since PIP is a no-fault insurance, there is no need to file lawsuits to find out who caused the accident in order to get coverage for medical bills. This is very beneficial to the injured individual(s) since this will speed up the process for payment of medical bills.

PIP insurance coverage has been available to customers since the early 1970s. Today the vast majority of automobile insurance companies offer this insurance. Note – some auto insurance companies refer to PIP coverage as Medical Payment Insurance of Medpay.

PIP insurance helps to pay expenses incurred by the driver as well as all passenger(s) in the vehicle at the time of an automobile accident regardless of who is at fault.  The passenger(s) in the vehicle eligible for this coverage may be either family or non-family members.

In the majority of States within the U.S. some level of PIP insurance is mandatory.  There are various levels of PIP insurance coverage available, so familiarize yourself with the minimum level of required PIP insurance coverage in the State where your car is registered.  In order to find out the automobile insurance requirements for a particular State, check with an individual licensed to sell auto insurance in that State or the State Department of Insurance website.

If the State where your car is registered requires PIP insurance coverage and you do not carry this type of insurance as part of your auto insurance policy, you may be required to pay a heavy fine or may risk the loss of your driver’s license if caught without the proper insurance coverage.

For individuals living in States that require PIP insurance coverage you have the ability to increase the PIP coverage above the mandatory requirements at an additional cost.  This additional PIP insurance coverage is beneficial if you do not have health insurance or limited health insurance to provide extra coverage.

PIP insurance covers, within certain limitations, may cover the following costs for a designated period of time.

• Medical, surgical, dental and rehabilitation therapy.
• Diagnostics tests (x-rays, MRIs, or other tests).
• Prescriptions and medications.
• Ambulance transportation.
• Lost wages (or percentage of lost wages) due to injury. This includes lost wages for hospital care or time away from work for follow up medical appointments and/or therapy treatments.
• Disability benefits.
• Pain and suffering.
• Personal care expenses.
• Funeral expenses in event of a fatal accident.

PIP insurance does not cover the cost of damage to your vehicle incurred during an accident.