What is a Personal Insurance Policy (PIP)?
Car accidents can wreak all kinds of havoc on physical health and cause disruptions to one’s ability to work and earn money. Most people carry car insurance (it’s the law) but many may not be aware that they can add a Personal Insurance Policy (PIP). PIP is available in most states and is even required in some. Its purpose is to cover certain expenses or loss of income in the event of a car accident. PIP is often called “no-fault” coverage because it is designed to be paid regardless of who is at “fault” and a claimant’s insurance premium should not increase due to a PIP claim.
It is important to understand that even if you have a health insurance policy, you could still benefit from a personal insurance policy. A PIP can help to pay for gaps in your health care plan such as deductibles.
A Personal Insurance Policy Typically Covers (up to a certain limit):
Medical/hospital bills. If you experience a personal injury you are likely to be seen and/or treated by a doctor. You may be brought into an emergency room after a car accident or be setup for ongoing physical therapy treatments; all of which costs money.
Loss of wages. If you are in a serious accident, your injuries may prevent you from returning to work immediately, or ever. A personal insurance policy can help to cover you for lost wages.
Loss of services. A personal insurance policy will help to cover the cost of hiring people do services that you would do if not for your personal injury such as grocery shopping and picking up the kids from school.
Funeral expenses. If you are killed in a car accident, a personal insurance policy can help to pay for funeral expenses.
Note: be aware there are some situations when PIP doesn’t apply.
Do I need a Personal Insurance Policy?
Unless you live in a state that requires you to carry a personal insurance policy you may decide whether or not you need one. In Washington State, your insurance provider is required to offer it to you and you must reject PIP in writing should you choose to forego the coverage. A primary breadwinner or a couple with young children may want to look into coverage because the loss of either of their incomes or services would be the family in serious financial jeopardy.
Is a Personal Insurance Policy Expensive?
Personal Injury Protection (PIP) insurance in Washington State is usually relatively inexpensive, costing between $5–$50 per month. However, t’s important to shop around because the cost of PIP coverage varies by company and can increase the total cost of a policy by up to 43 percent for drivers who only have the minimum required liability insurance.
If you or a loved one were injured in an accident, you have enough to deal with. Let an experienced accident attorney fight for the full compensation that you deserve. It is not uncommon to receive a settlement from the insurance company that is five to ten times bigger with the help of a lawyer. Call the caring accident attorneys at Tario & Associates, P.S. in Bellingham, WA today for a FREE consultation! We have been representing residents of Whatcom County, Skagit County, Island County and Snohomish County since 1979. You will pay nothing up front and no attorney fees at all unless we recover damages for you!
