What Are PIP Claims and How Do They Work?

American drivers covered a total of 3.23 trillion miles on the nation’s roads in 2019. As more motorists put in extra travel time, there’s been a concern over the number of motor vehicle-related accidents. To date, motor vehicle crashes rank among the top five leading causes of death.

With such perturbing statistics, taking precautionary measures while cruising on the roads is vital. Insurance coverage is among the ways you can protect yourself and other passengers on board.

You want to know you have the right coverage while on the road. That’s why PIP claims are among the essential insurance coverage plans every driver should consider. PIP stands for Personal Injury Protection.

Read on to learn everything about PIP claims and how they work

What’s a PIP Claim?

For every one person killed in a motor vehicle crash in the U.S. in 2018, nine people spent at least a month in hospital nursing injuries. Such motor accidents cost the injured a significant financial burden. It’s not easy grappling with medical bills while still dealing with lost earnings due to hospitalization.

Personal Injury Protection bridges this gap. Personal Injury Protection is the claim you make against the respective insurer for any medical bills incurred or the number of lost earnings due to hospitalization.

Once you make a personal injury protection claim against the insurer, you pass over the burden of all medical bills to them. Depending on the terms of your PIP claim, you also receive compensation for part of your lost income.

How PIP Claim Works?

Could you be wondering how personal injury protection works? You aren’t alone. Most car owners have trouble understanding how PIP claims work.

In simple terms, Personal Injury Protection is an extension of the ordinary car insurance coverage for motorists. The only difference is that with the PIP claim, the compensation plan restricts coverage to medical expenses and lost wages. The enactment of the PIP claim falls within the no-fault laws.

In states like Florida, the No-Fault law provides specific stipulations in case of an accident. The law directs that in case a car crash occurs, both parties should turn to their auto insurance providers to make claims. This directive is regardless of who is at fault at the time of the crash.

The insurance provider will pay you for your bills regardless of the fault to the extent of the coverage limit agreed upon. In Florida, the minimum limit for insurance is $10,000. It would help to understand your insurance provider’s minimum limits regarding both medical bills and compensation for income lost.

It would also help to understand the permissible medical treatment options when signing up for personal injury protection. Most personal injury protection plans will focus on compensation for medically necessary and reasonable claims. You might need to consider such factors when signing up for coverage to avoid unnecessary disagreements when filing claims.

It would help if you also considered other factors such as the extent to which your insurer is willing to pay for lost wages. Some providers will pay up to 80% of the lost wages.

Other insurance providers consider factors such as the period you’ll likely spend away from work before settling on a compensation plan. Please read here for more on the PIP claim in Florida.

Reasonable and Necessary Medical Expenses Covered by PIP

Medical bills are some of the most common expenses you grapple with following an accident. Your PIP covers a wide range of medical expenses, including health insurance deductibles.

Your insurance provider defines medical expenses as those that are reasonable and necessary. These medical expenses include surgery and emergency care.

Your provider might also cover all your medical needs related to x-rays and dental care following an accident. If you need prosthetic devices, your PIP claim also covers such needs. PIP claims may also cover other critical services after initial treatment such as therapy, rehabilitation, or remedial care.

Most car accident survivors need psychiatric and psychological care following an accident. Personal injury protection offers mental support for recovering patients in such cases. Personal injury protection insurance will also provide you with optometry services and audiological support in the period after the accident.

For most insurance providers, these services are universal. However, other unique services such as non-medical welfare may vary from service provider to the next. It would help to consult your provider on such issues.

Lost Income

Car accidents often lead to injuries that may require additional time during recuperation. Some forms of PIP claims support plans to offer compensation for the lost time. However, this option does not apply to all the PIP insurance plans.

You may need to top up an extra premium to your base car insurance policy to apply for lost wages compensation.

You might also need to consider the cost-benefit of paying extra for your auto insurance to ensure that it covers for lost wages. Some providers will pay up to 80% of the lost wages. Other insurance providers consider factors such as the period you’ll likely spend away from work before settling on a compensation plan.

Different insurance companies set varying compensation plans depending. Mostly this depends on the various considered risks. Your provider will likely reduce 20% of the amount owed to you and include any applicable deductible.

Other determining factors include the underlying state laws or the social benefits accruing.

Some motorists consider long-term disability insurance policies in their PIP claims. This option may last longer as it offers higher benefits than the lost earnings. Before you settle for specific coverage, ensure that you consider such dynamics.

Who Does PIP Claim Cover?

When you apply for no-fault insurance, your service provider is specific about the particular people they cover. You, as the person insured by the policy, will have full coverage. The coverage includes instances where you are hit by another car.

The policy also covers your immediate family members, while occupying your insured car. Your immediate family members can also get compensation when hit by another car.

Pip Claims Can Help Reduce Your Burden After an Accident

Accidents are a common occurrence in most American roads. While not all accidents are fatal, some cause long-term disabilities that require medical and financial support. The lost wages due to unproductivity can have a toll on your pockets.

Thousands of motorists involved in accidents every year apply for PIP claims against insurance providers. Such claims help you to return to your previous financial position.

Preparing in advance for a potential accident is always critical. All you need is a reliable insurance provider to help you get on your fit after an accident.

Check out our other articles for more tips on how to handle different kinds of claims.

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