When someone is involved in a car accident, obtaining personal injury is often inevitable. That is why every car owner and driver needs to purchase some form of insurance policy for their vehicle. Aside from the common third-party liability policy and the collision coverage, another helpful policy is the Personal Injury Protection (PIP) coverage.
PIP is a cheaper type of insurance policy that provides coverage for the medical bills, lost wages, and pain and suffering damages of the victim. Unlike other types of insurance such as third-liability and uninsured motorist coverage, PIP may cover part of the insured's expenses regardless of fault. However, you may need to consider the following guidelines to make sure that you are eligible to receive compensation:
- Your expenses for medication and therapy are related to a vehicle accident.
- If any individual covered by the PIP coverage was killed in a car accident, an additional death benefit would be given.
- The accident should not be caused by a DUI violation of the insured.
- You will receive compensation based on a certain percentage of lost wages.
- The insured will get a specific amount of money daily from the time of the accident.
- You would not be able to receive compensation if you have intentionally caused your injuries.
- The insured driver cannot obtain payment from his PIP policy if he was committing a criminal act at the time of the accident.
Only a certain group of people may be covered by PIP insurance. The following are some of the participants that may receive financial assistance from your insurance company:
- The vehicle owner who purchased the insurance
- The insured's relatives in the same household
- His passengers at the time of the accident
- Any authorized driver
In some cases, PIP compensation may not be enough to cover all expenses that may be incurred in a car accident. In this kind of situation, you should be able to get financial assistance from other sources such as third-party liability (if the other driver was at fault), health insurance, pension, disability benefits, workplace compensation, etc.
Finally, remember that the PIP insurance policy would not pay for any property damages of involved vehicles. It is up to your collision coverage to compensate for your repair or replacement expenses. Personal injury protection coverage may be an optional coverage, but its benefits can definitely be matched up to major auto policies in the market.