Personal Injury Protection (PIP) is a type of insurance coverage that a motor vehicle owner has that covers them in case of any bodily harm in an accident. The insurance covers medical expenses and driver’s income loss regardless of the person at fault for the accident, depending on the state. In Florida, for example, personal injury protection is part of all auto insurance plans and is mandatory for all drivers.
Why It’s Important to Get Personal Injury Protection as a Car Owner
1. It’s Less Costly but Very Valuable
For many insurance companies, this product doesn’t make them a lot of money because the coverage premiums are relatively cheap. Therefore, they don’t always offer it to their clients unless the law says they have availed it to potential clients. Averagely, PIP covers at least $10,000 of medical and personal expenses caused directly by a car accident.
This amount might not seem like much, but is extremely helpful before the insurance company and the courts determine the cause of the accident and award the plaintiff the whole settlement. Compared to health insurance, insurance holders get the amount without dealing with copays, restrictions and deductibles.
2. It Offers the Victim Leverage Against Insurance Companies
Most insurance companies care about their bottom line and not paying victims what they deserve. They know that an injured victim will most likely take whatever amount they offer to pay for their medical bills and sustain their families before returning to work. However, individuals with PIP can hold out as long as possible because their insurance has paid their medical bills and other expenses; thus, they can follow through with their lawsuit for however long it takes.
3. It Covers the Victim Without Considering Who Caused the Accident
Here, the victim received payment from their insurance company even if they are liable for the accident. This kind of plan is covered in no-fault insurance laws and applies in no-fault states. However, the injured party cannot sue, as there are limitations to this law.
On the contrary, if the victim wasn’t responsible for the accident, they will still receive compensation from the other driver’s insurance company if they have PIP. Here, you can sue the other driver as there are no limitations.
4. It Provides the Family Relief in Case of Death or Total Disability
Fatal car accidents rob the family of breadwinners, and the family might find it hard to cope. PIP can give the family 100% of the amount of the deceased’s insurance policy. They also cater to funeral expenses within a very short time.
In case of partial loss of limbs such, as a leg or hand, the insurance company will compensate for the insurance money. If the victim loses both their limbs, then they can receive the whole amount of the insurance policy. This is to provide a reprise for the financial blow dealt to the family due to the accident.
5. Additional Benefits
Depending on the insurance company, there are added advantages of having personal injury protection. They will pay for additional medical equipment such as ambulance costs, wheelchairs and crutches. The coverage also provides money for trauma therapy and physiotherapy if the victim needs any of these services.
Why You Need a Lawyer, Even with Personal Injury Protection
PIP coverage plans should provide the victim with relief from accrued medical bills and loss of income caused by a car accident. However, if the victim files a personal injury lawsuit and receives compensation from the defendant, they would have to refund their insurance company. Therefore, you will need a personal injury lawyer to negotiate the refundable amount.
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