Is PIP Insurance Right for Me?

PIP or personal injury protection insurance is a valuable asset to have on any auto insurance policy as it protects the insured against high medical bills and from lost wages. PIP insurance is classified as no fault insurance because it covers the insured if they were the cause of the accident or if they were innocent. This article will help explain what PIP insurance is and how it can benefit you.

What is PIP insurance?

PIP is an insurance option that covers the insured in the event of an accident by paying medical bills and lost wages up to a predetermined policy amount. For example if you purchase a $10,000 PIP insurance plan (which is actually a low value), the insurance company will cover up to $10,000 of medical bills and lost wages. The full value of the policy is often used since medical bills are very high.

What value of PIP insurance should I get?

The higher the policy amounts the better off you are in the event of an accident. PIP insurance covers the insured no matter who is at fault for the accident, which can be very beneficial. Any amount of PIP insurance will help reduce your out of pocket cost considerably, especially for those without medical insurance.

I am trying to lower my premium is it really worth adding PIP to my current policy?

PIP insurance covers damages that are done by a moving vehicle, which means if you are hit by a car while jogging you are still covered. Medical bills are usually higher than what you would pay for an auto insurance policy; therefore getting a good amount of PIP coverage is well worth the extra upfront cost.

Who needs PIP insurance?

PIP insurance is mandatory in many states, but in states areas that it is not mandatory it is recommended that it is still purchased. The cost in a small addition to your premium and is well worth that cost in the event of an unforeseen accident. Everyone should be insured with a PIP plan even if it does add to your yearly premium.

Sources:

http://www.kstlaw.com/Insurance/insurance.htm