What You Need to Know About PIP
FOR IMMEDIATE RELEASE:
Contact: Amanda Edmunds
I & E Insurance Agency
(Point Pleasant NJ August 5 ,2019)
What is PIP?
PIP, or personal injury protection, is also known as no-fault insurance. One of the most important concepts that you’ll encounter, PIP pays for “a driver’s medical, rehabilitative, and living expenses after suffering an injury in a car accident in New Jersey.” (1) Because New Jersey is a no-fault state, PIP is paid out regardless of who caused the accident and has two options: health insurance as primary medical coverage, and lawsuit restrictions.
What does PIP cover?
PIP covers medical costs like ambulance services, hospital stays, doctor’s visits, therapy, rehabilitation, and diagnostic tests. In the event that you are prescribed medications as a result of the injuries you suffered – muscle relaxers, pain medications, epidural steroid injections – you will be covered for these expenses as well.
PIP also covers lost wages in the event that you are no longer able to work because of your car accident injury. While it varies by policy, the limits cannot exceed your normal income. In the event that you can’t complete normal everyday tasks, a total of $12 per day can be allotted for tasks like laundry, cleaning, and lawn mowing.
Finally, death benefits and funeral costs are covered under PIP. The individual’s next of kin – typically, their spouse or children, will receive the maximum amount of benefits allotted had the individual not died/ Additionally, up to $1,000 in reasonable funeral, burial, or cremation expenses will be paid.
How does PIP Work?
If you’re the registered owner of a vehicle in New Jersey, your insurance will pay your medical bills in the event that you are injured in a car accident regardless of who is at fault. PIP will cover your medical treatment up to your policy limits even if you were the passenger in the car. If you’re injured as a pedestrian, your insurance will still foot the bill.
Similarly, if you are injured in a car accident and don’t own a car, your medical bills will be covered by a family member who does own a vehicle. The insurance of the negligent driver, no matter the circumstance, doesn’t pay your medical bills – even in the event that you nor a family member own a registered vehicle in the state of New Jersey.
Why do I need PIP?
PIP is required in most no-fault states and four fault-based states including Deleware, Florida, Hawaii, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, and Utah. That said,
How far does your PIP coverage go?
Your coverage depends on the coverage limits you choose in creating your policy. The standard auto policy in New Jersey is $250,000 by default. Even the cheapest auto insurance policy MUST include $15,000 of PIP coverage per person. This might seem like a low amount, but medical care can add up. Ambulance rides cost about $2,000 dollars, inpatient rehab can be at least $1,600 a day, and an ICU stay can cost $10,000 for the first day. If you reduce your PIP coverage limit from $250,000 you’ll easily find that your benefits are long exhausted before you even step foot out of the hospital.
Looking to find an auto insurance policy to protect yourself and your family? I & E Insurance offers comprehensive coverage to provide you with the necessary property, liability, and medical coverage.