What Claim Types Can You File Under PIP Insurance?

front end of damaged vehicle - pip insurance image

Insurance companies cover the damages of policyholders with PIP coverage. This type of coverage offers protection regardless of who is responsible for the damage. PIP insurance is required in no-fault states across the U.S., including New York, and there are severe penalties for not having this insurance. You can maximize settlement in no-fault healthcare claims through arbitration and litigation with an experienced attorney. 

What Is the PIP Insurance?

Personal Injury Protection (PIP) refers to coverage for expenses related to a car accident, such as lost income and funeral costs. This insurance also covers the medical bills of the policyholder and passengers injured in the accident, regardless of who was at fault. However, this kind of insurance does not include property damage. PIP is an optional coverage in many states; however, some states have PIP as mandatory. 

What Does Personal Injury Protection (PIP) Insurance Cover? 

 PIP insurance covers the following damages:

    Medical bills and rehabilitation: Injuries sustained by the policyholder that require immediate medical treatment, prolonged rehabilitation, and other medical expenses. Lost wages: Loss of current or future income due to extensive medical treatment or disability. Reimbursement for replacement services: Any expenses made because the policyholder could not perform certain activities, such as childcare or housework. Funeral and Burial expenses: If the accident resulted in the policyholder’s death, their funeral and burial expenses are covered by PIP insurance. 

PIP insurance does not cover the damages (bodily injuries or property damage) sustained by the other party involved in the accident. The policy also does not cover any policyholder injured in an auto accident while working or committing a crime.

Any individuals who do not have insurance but were with the policyholder at the time of the accident can also be covered by the policyholder’s PIP insurance, depending on the coverage policies. 

Do You Need PIP If You Have Health Insurance? 

Currently, PIP insurance is required in 12 states in the U.S., which means any policyholder with PIP coverage would have to file a claim with their insurance provider before turning to health insurance benefits. In most cases, personal injury protection coverage can offer more benefits than a health insurance policy. 

For example, health insurance typically does not cover any loss of income or burial costs of the policyholder after the car accident. In addition, health insurance policies could also have high deductibles and would not offer coverage to passengers. By contrast, a PIP insurance policy might not have any deductibles depending on the coverage policies. If the policyholder does not have health insurance and their PIP coverage is exhausted, they would have to pay the remaining medical expenses out of pocket. 

How to Start a Claim Process for PIP?

You can submit a PIP claim online or contact your insurance provider to initiate a claim. The insurance adjuster can guide you on starting a claim and what documents are required, such as medical bills, invoices for out-of-pocket expenses, etc. Then, the insurance company would review the coverage policy and can offer full or partial reimbursement for the damages depending on the terms of the coverage.