Personal Injury Protection (PIP) is also known as Medical Payment Insurance or Medpay. It compensates the policy holder for bodily injury damages occurring in an accident by providing payment for medical and hospital expenses, child care expenses for bodily injury caused by a covered accident, loss of services and funeral expenses.
When providing for compensation PIP does not look into whose fault the accident really was. This can be a real advantage in the event of a serious accident, because time is saved and you can claim on medical bills quickly. There is no need to file lawsuits to find out who is to blame for the accident in order to get coverage for medical bills. This saves you money as well.
PIP is available as a form of coverage only in certain states. In some states where PIP is available, it can also be mandatory and so you have to be prepared for this expense. It can be quite expensive given the rising costs in medical care these days. If you have more than one automobile, then PIP is applicable for all those you own and you have to pay a premium charge to your insurance company for every auto. Therefore it is very important you consider if you require PIP before you take it up.
So under what conditions is taking a PIP really helpful? Before you decide to take PIP, check your current insurance policies. If your health insurance policy provides coverage for medical bills and lost wages, you can opt out of taking PIP.
If you drive alone most of the time, health insurance is enough to pay for your medical bills. However, if you are going to be carrying passengers often, then better take up PIP because it is only this coverage that will compensate for injuries to passengers.
If you live in a state where PIP is mandatory, you cannot opt out of taking it. In this case find out the minimum amount you need to pay to avail this coverage. Age is also a determining factor - if you are young and have not yet taken any health and liability insurance then better to opt for PIP to protect yourself, and your family. Middle aged people with adequate health and liability insurance polices need to take only a minimum PIP coverage as this will suffice.
Most importantly, look into the terms and conditions of coverage before taking it up so that you are aware they you are safely covered.