Personal Injury Protection insurance (PIP) is a type of no-fault car insurance available in 21 states, though it’s not offered in California. Instead, drivers in California can choose MedPay, an optional no-fault insurance policy. Why should you learn about PIP then?
Understanding PIP is useful even for Californians because it helps you compare different types of coverage and make informed decisions about your insurance needs. If you ever move to or drive in a state where PIP is available, knowing how it works can be beneficial. Additionally, understanding the differences between PIP and MedPay can help you decide if MedPay is right for you in California. So, what is Personal Injury Protection?
What is Personal Injury Protection?
Personal Injury Protection (PIP), also known as “no-fault insurance,” is a part of an auto insurance plan that helps cover medical expenses from a car accident. PIP pays for the medical bills of both the policyholder and passengers, even if some of them don’t have health insurance.
If the medical costs go beyond the PIP limits of your auto insurance policy, your health insurance might cover the remaining expenses. PIP policies have a per-person maximum, which means there’s a limit to how much coverage each person can get if multiple people are injured in an accident.
What Does Personal Injury Protection Cover?
Personal Injury Protection (PIP) insurance is designed to cover several key expenses resulting from a car accident:
- Medical expenses: It pays for your medical bills from a car accident.
- Lost wages: It covers wages lost due to your injuries.
- Rehabilitation costs: It pays for necessary rehabilitation services.
- Replacement services: If you can’t perform certain tasks because of the accident, such as house cleaning or child care, PIP covers these replacement services.
- Funeral expenses and survivor benefits: It also covers funeral expenses and provides survivor benefits.
What is personal injury protection’s goal? Their goal is to provide quick payment for car accident injuries. Since PIP claims are paid regardless of who caused the accident, you don’t have to wait for a liability lawsuit to be resolved.
What Is Not Covered by Personal Injury Protection?
However, PIP insurance does have its limitations. It does not cover:
- Bodily injuries to the other driver and their passengers
- Injuries if you are driving for work purposes
- Injuries from an accident while committing a crime
- Damage to someone else’s property
- Damage to your vehicle
Understanding what PIP covers and what it doesn’t helps you make informed decisions about your insurance needs and ensures you’re adequately protected in the event of a car accident.
Why Is There No PIP Insurance in California?
California is an “at-fault” state, which means the insurance company of the driver who caused the accident pays for the other driver’s medical bills. This is different from “no-fault” states, where drivers use their own PIP coverage to pay for their medical expenses after an accident.
In no-fault states, drivers don’t need to determine negligence, responsibility, or liability to file a claim with their PIP insurance. But in California, these factors must be established to determine who pays for the damages.
Can I Still File a Personal Injury Lawsuit if I Have PIP Insurance?
It depends on the state. In states that require PIP insurance, your ability to file a personal injury lawsuit after a car accident is often limited.
For example, in some states, drivers must have at least $50,000 in PIP coverage. You can only file a personal injury lawsuit if you suffer a “serious injury.” This includes:
- Death
- Dismemberment
- Significant disfigurement
- Fracture
- Loss of a fetus
- Permanent loss of use of a body organ, member, function, or system
- Permanent limitation of use of a body organ or member
- Significant limitation on the use of a body function or system
- A non-permanent injury that prevents you from performing your daily activities for at least 90 out of the 180 days after the accident
Other states may have similar limitations on when you can file a personal injury claim.
Since there is no PIP insurance in California, you can get MedPay, which is similar. MedPay covers medical expenses regardless of who is at fault. Unlike in some states with PIP, in California, you can still file a personal injury lawsuit even if you have MedPay.
If you’re unsure about your rights or need help, it’s always a good idea to call a lawyer like Kirakosian Law. They can guide you through the process and help you get the compensation you deserve. One major benefit of hiring a personal injury law firm is that they handle all legal matters for your case. This means you can direct any questions from your insurance company to your attorney.
The Los Angeles car accident attorneys at Kirakosian Law APC genuinely care about our clients and take it personally when insurers treat them unfairly. Contact us today for a case evaluation and to learn more about your options.