Personal Injury Protection (PIP)
People are often confused about what Personal Injury Protection(PIP)is,whose insurance company pays out the benefits, and what is meant by being a "no-fault" state. PIP insurance is used to cover medical expenses and work loss to the individual carrying the insurance. When an accident occurs with an uninsured or underinsured motorist who in effect causes physical harm to you or your passengers your PIP coverage goes into effect and will provide coverage for you and your passengers up to the limits of your policy.
PIP is a mandatory coverage in many states check online to see what your state requires. The limits vary from state to state. For example Florida mandates $10,000 in coverage for PIP. Of which 80% of you and your passengers medical bills are covered up to the limit of $10,000. Loss of wages would also be covered up to 60%, to a maximum once again of $10,000. Then once those limits have been exhausted the driver who is found at fault will cover additional expenses through their PIP insurance till the limits of their policy have been also been exhausted.
Finally if you carry Uninsured Motorist (see uninsured motorist)it would cover the remaining expenses up to the limits on your policy. So you potentially have 3 tiers of coverage for medical. Your PIP, the at fault drivers PIP and Uninsured Motorist Protection. PIP insurance can be carried in any state but is only required in no-fault states. PIP insurance covers more than just medical bills and loss of wages. This however varies from state to state, it may include travel to and from medical treatments and procedures, and other expenses brought about by the injured party's inability to do the things he or she used to do. States that now require PIP are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New York, New Jersey, North Dakota, Pennsylvania, and Utah. The other 38 states make PIP optional.