If you live in one of the twelve no fault states and you get into a car accident, you may have called your insurer and been told that you have to recover through personal injury protection (PIP). For those not well versed in legal or insurance lingo, this sounds like a foreign concept... what is PIP and how does it affect you? It is very important to understand exactly what this coverage is and how it affects your rights after a car accident.
Understanding PIP after a Car Accident
To help you better understand PIP after a car accident, here are some frequently asked questions and their answers:
- How does PIP work? PIP, or personal injury protection, is a required type of insurance coverage. In no fault states, the legislature believes that it is beneficial to ensure that each person gets his medical bills paid quickly after a car accident. Therefore, instead of taking the time to determine fault (and the person who is found to be at fault potentially left without a way to pay his medical bills), every driver is required to purchase a set minimum of PIP. This coverage provides you with payment for medical bills after an accident, whether you or the other driver causes it, up to your policy limits. That means you're never left without a way to get treatment and you don't become a burden on the state.
- What does PIP cover? PIP insurance will usually pay reasonable medical bills arising from the accident. It will also pay you for work you missed as a result of the accident, referred to as lost wages. In some states, you are entitled to 100 percent of your medical bills and missed paychecks. In others, you are entitled to only a percentage.
- What does PIP not cover? PIP may seem great- after all, you get to have your damages paid, even if you cause an accident. However, PIP does not cover pain and suffering or emotional distress arising from a car accident, both of which you would be entitled to in a fault state if you suffered certain injuries in an accident caused by the other driver and sued.
- Do I have to use PIP? PIP is generally not optional (with the exception of PA, which is a choice no-fault state). However, if your injuries are "serious" as defined by the law, then you may be able to sue to recover any additional damages not covered by PIP. Generally, serious injuries are defined as an injury that either exceeds a certain dollar amount or that is very grave, such as permanent disability.
Getting Help
If you live in a no fault state and get into a car accident, you should consult with an experienced auto accident attorney. Your attorney can give you some specific and detailed information on whether you can sue or whether you must recover from PIP, given the nature of your case.
