What Does PIP Insurance Stand for and What Should I Know About It?

PIP Insurance stands for Personal Injury Protection, and is a kind of insurance you can take out to cover you in the event of an accident. As an expanded type of auto insurance, PIP insurance provides more protection than a standard health insurance plan. For instance if you are so injured in an accident which renders you temporarily unemployable, then PIP Insurance will help pay for your lost wages and any form of rehabilitation you may require in the weeks or months following the accident.

What is provided by a standard health insurance policy?

Most standard health insurance policies will not provide you with this level of coverage but will simply pay out for medical/funeral costs at the time of the incident. By taking out a PIP insurance plan, you will probably be able to pay for the costs of any passengers in the car with you at the time of the accident, something which your normal health insurance plan would not cover.

PIP is not available in all fifty American states

Not all American states provide you with the option of taking out PIP insurance; in such a situation, you would have to assess how you would be able to find funding in the aftermath of an accident in which you were injured. It may be worth looking at medical payments coverage, in addition to your health insurance policy, which will cover certain other aspects and may be used to cover any deductibles you incur when making a claim.

PIP is also a no-fault type of insurance. It will cover you, your family members, and passengers – no matter who is to blame for an accident. According the Insurance Information Institute, one in five young drivers will have an accident this year, resulting in a medical bill running into thousands – possibly hundreds of thousands of dollars. This is why it pays to be prepared. As with any other type of insurance, make sure you check out the market before you purchase a policy by obtaining as many relevant quotes as you can. You can easily do that if you request a free, no obligation quote for PIP auto insurance right here.