What is PIP (Personal Injury Protection)?
PIP insurance is a "no-fault" protection plan that a driver may be required by law to purchase in his state to complement compulsory insurance coverage. A PIP (Personal Insurance Protection) benefit will pay for bills that are the result of an accident where PIP coverage was paid for by one or more of the parties involved. PIP insurance pays benefits to an amount that is predetermined by the policy and the premium amount paid by the insured. While the monetary amount may be limited, the value of PIP insurance coverage is immeasurable.
Identification
PIP value is a set amount of insurance coverage that can be used to pay for medical expenses and personal bills that are the result of an accident that is covered by the extra PIP insurance coverage. For states that require PIP insurance on all vehicles registered in the state, the value amount of PIP coverage can be is as low as $1500. The highest amount of coverage will be determined by the insurance carrier's policies and the premiums that the insured is willing to pay. The highest PIP insurance policies will be $250,000, but some insurance providers may allow for higher amounts depending on the relationship with the insured and the premium amounts paid for regularly. The PIP value will be noted in the part of the insurance policy that is set aside for the PIP coverage information.
History
Underwriters of insurance policies have a history of making an enormous amount of different types of insurance coverage available to companies and individuals throughout the developed nations of the world. Lloyd's of London, one of the first insurers of vessels and vehicles for personal and business needs, started in a coffee house in London in the 1700's. The practice of insurance was diversified and, because America uses the automobile as the most common form of transportation, automobile insurance has become a significant industry here. States which require PIP coverage in order to drive have taken steps to protect their citizens from uninsured motorists by requiring that medical and personal bills can get paid by a car owner's insurance policy by enacting PIP requirement laws.
Function
PIP insurance coverage is there to help the injured get back on their feet, and the medical community to get paid for their services of accident victims and patients of PIP covered injuries. The value of PIP insurance is stated as a dollar amount that can be used to immediately pay for expenses related to the accident. For most, this insurance coverage protects them against the high cost of medical treatment resulting from an accident. The PIP coverage is paid out, up to the maximum, and then the remainder will go back to the regular coverage of the auto insurance's health portion of the coverage. Having a high-value PIP policy will ensure that medical and personal bills related to the accident get paid immediately. This not only protects the patient, but in the end it protects the medical profession from treating patients who are unable to pay for their care.
Warning
PIP value has a limit. Sometimes medical expenses go well beyond what PIP will pay for. It is not only important to have PIP coverage where needed, but it can also be the benefit that the remainder of the auto insurance will not pay for. Because most auto insurance policies predetermine what it will pay for, an extra PIP benefit may save a patient from having to pay medical expenses and bills that are not covered by the health portion of the auto insurance policy. Determine the best amount of coverage by finding out what the rest of the insurance will cover, and under what circumstances. Because PIP insurance is "no-fault," it may be the only way you can get medical bills paid for if you are at fault in an auto accident.
Considerations
Premium amounts will determine how a car owner will insure a vehicle. Getting the right protection against loss from accident is first mandated by the state of registration. Depending on what state requirements there may be, including a "no-fault" form of insurance can be a great benefit in states that do not require it. Fault or no-fault insurance can determine whether your bills get paid or not. Many times, an auto accident can be traced back to who was at fault and who was not. For the victim, the at-fault driver's insurance will be asked to pay for medical and personal bills that are the result of the accident. For the at-fault driver, the insurance company may or may not be willing to pay for injuries or bills. This is where a PIP policy is most effective at reducing the stress of an at-fault accident. The no-fault clauses that are a part of a PIP policy will pay for medical and personal bills that apply to the policy. Buying extra PIP insurance can protect you when you have an accident that is your own fault.
Effects
For victims who have limited insurance options available to them, the effect of having a PIP insurance policy is to protect against an unexpected loss from automotive accidents. No longer will medical bills go unpaid because you may have been at fault in an accident. Insurance companies who take too long to determine who is responsible for payment of the medical and personal bills of the parties involved will have to make quick restitution on PIP policies. The reason so many states require PIP coverage in order to drive is because the protection offers the state more ways to protect its medical industry from treating patients without payment. The largest reason for hospital failure is lack of payment for services rendered. In auto accidents where PIP is involved, the hospital or doctor can expect fast payment from an insured's policy underwriter.
Tags: insurance coverage, personal bills, bills that, medical personal, medical personal bills