PIP Insurance

Posted on April 14, 2008 by Jason Fernandez

WHAT IS PERSONAL INJURY PROTECTION?
Automobile insurance policies offer many different types of coverage: property, personal property, uninsured motorist, under insured motorist, collision, rental, bodily injury, and personal injury protection (PIP). PIP is primarily available to pay medical bills related to an automobile accident and, a percentage (85%) of lost wages due to disability from injuries from a motor vehicle accident. What coverage is required varies from state to state. In Maryland, PIP must be offered by insurance carriers to customers, who then have the option of waiving or denying the coverage.  Maryland Pip Studies

WHAT ARE THE ADVANTAGES OF HAVING PERSONAL INJURY
PROTECTION?
There are numerous advantages to PIP benefits. First, customers are entitled to the benefits regardless of who was at fault for the accident. This means that even if you caused the accident, there are benefits in your car insurance policy that you can use for your medical expenses and lost wages. Second, since fault does not need to be determined, medical bills can be paid without unnecessary delay. Maryland law requires that the PIP insurance provider take action on PIP claims within 30 days of submission of a medical bill or lost wage claim. Third, PIP can increase the amount of compensation obtained from the at-fault party’s insurance. An injured person can make a legal claim for medical bills even if PIP has already paid them, unlike health insurance which must be paid back. Fourth, PIP covers a variety of people thereby filling insurance gaps. PIP is available to all family members of the insured who resides in the same household, permissive drivers, guests/passengers in the insured’s vehicle, and pedestrians injured as a result of the accident. It is important to know that PIP money is not available, however, to those who have actively chosen to waive it under their own insurance policy, even if they are injured as passengers in a car that does have PIP coverage. In short, waive it on your policy, and you waive it for yourself on all insurance policies in Maryland.   Maryland Approved Insurance Companies.

HOW MUCH COVERAGE SHOULD I HAVE?
PIP coverage is limited to the amount of coverage the policy carries. Policies are usually
written in three amounts: $2,500, $5,000 and $10,000. The standard, and most common, amount is $2,500. Considering the benefits of PIP, I recommend that customers purchase as much as they can afford (high wage earners should always purchase the maximum amount of insurance possible). The legal system is slow. Recovery from the at-fault party can take months, even years, depending on the severity of the injuries. During that time period, there are precious few avenues for compensation for injured persons. PIP can pay outstanding medical bills before they go to collections and affect a person’s credit history. PIP also offers these people a source of income, if disabled, during the long road to recovery.

To learn more about PIP or personal injury issues, please see personal injury law.  To learn more about our personal injury lawyers, please click on personal injury lawyers maryland and read the firm bios on Andrew Bederman, Roger Greenberg, or Jason Fernandez.

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