Understanding the Ins and Outs of PIP Coverage

Personal injury protection, also known as PIP coverage or no-fault insurance, covers the medical expenses for you and your passengers related to injuries sustained in an automobile accident, regardless of who is at fault – and regardless of whether they have health insurance. It can often include lost wages, too. This benefit can also apply if you’re self-employed and need to hire temporary workers to perform tasks.

PIP policies have a minimum coverage amount and a per-person maximum coverage limit.

This car insurance coverage applies even if you’re not driving. For example, if you’re injured after getting hit by a car while walking, your PIP coverage may help pay for your injuries.

However, PIP does not include compensation for pain and suffering.  To recover compensation for pain and suffering, car accident victims may need to file a fault-based liability insurance claim or personal injury lawsuit against the responsible party.

Note that PIP coverage also will not cover:

• Property damage
• The other drivers’ injuries in a collision
• Any injuries from an accident while you were committing a crime, like fleeing the police
• Injuries in an accident while you received payment for driving