If you are involved in an automobile accident, you or your passengers may get injuries. Personal injury insurance (PIP) can cover injuries to you and your passengers regardless of who was at fault in the collision. PIP is required in several states as part of their “no-fault auto insurance” rules, which limit your ability to claim for vehicle accident injuries. Even if you are not required to purchase PIP, it can be an important aspect of decent vehicle insurance coverage if offered in your area. Talk to an expert today to learn more about personal injury claims in Vermont.
What is personal injury protection (PIP)?
PIP, or Personal Injury Protection, is also commonly known as “no-fault insurance” and is a component of a vehicle insurance policy that pays for medical expenses incurred due to a car accident. PIP pays for medical payments for wounded policyholders and passengers, even if some are uninsured.
If the cost of essential medical treatment exceeds the PIP limits of the motor insurance policy, health insurance may pay additional costs. Plans contain a maximum per person, meaning that if multiple people are wounded in an accident, coverage is limited to a particular sum per person.
How Personal Injury Protection Works
Car insurance standards and features vary by state, and PIP coverage is primarily accessible in no-fault states. If a policyholder is injured in an automobile accident in a no-fault state, the policy covers the holder’s medical care, irrespective of who caused the accident. PIP policyholders can obtain payments even if the other driver does not have insurance.
Besides making medical treatments more affordable, PIP coverage also pays for lost wages, child care, and burial expenses incurred due to the accident. Several no-fault states provide medical payment coverage, but it usually has limited limits and does not cover these additional expenditures.
In 12 states and Puerto Rico, PIP auto insurance is mandated. State governments determine criteria for minimum coverage, which can differ. Insurance corporations set maximums, which can vary, but are normally no more than $25,000.
Personal Injury Protection vs. Liability Insurance
Personal injury protection and liability insurance are not the same things. PIP covers medical expenses for policyholders and anyone in their car at the time of the accident, regardless of who is at fault. If the policyholder is found to be at fault, liability insurance will cover the medical bills of the third party, not the policyholder.
Liability insurance covers injuries to third parties, such as pedestrians or the driver and passengers of another vehicle. It would not cover your medical bills if you were the cause of the accident. For more information, seek the help of an experienced personal injury attorney today.