What Does Personal Injury Protection Cover?

Personal injury protection covers―up to the policy limits―the following:

• Injuries sustained in a car accident, regardless of fault.

• Injury-related costs like day care, lawn maintenance, and travel costs to medical facilities.

• Lost wages.

• Funeral expenses.

Currently PIP is required in Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Washington D.C. In all other states it's either optional or not available.

Supplementing Health Insurance With Personal Injury Protection

The no-fault nature of PIP makes it a smart supplement to limited health insurance coverage.

If, for instance, you sustain injuries in a car accident, your personal injury auto insurance will cover you―up to the designated limits―even if your negligence caused the car accident. This means prompt medical payments and peace of mind.

Unlike health insurance coverage, PIP will also compensate you for income you lose while recovering from injuries. Plus, personal injury protection will pay the medical costs of all injured passengers. If you're a young parent, this is especially beneficial knowing all of your family members will be covered with adequate health insurance protection.

This is not to say you should substitute medical coverage with PIP, but instead to use it as an additional safety net. Especially if your health insurance coverage is inadequate at best. Compared to liability car insurance coverage, PIP is relatively inexpensive, allowing you to maximize coverage without breaking the bank.

When deciding on PIP coverage, weigh the following:

• Do you have health insurance? If no, PIP is a must.

• How extensive is your health insurance plan? If you maintain minimum protection, consider maximizing your PIP coverage.

• Do you have a family and often drive with family members in the vehicle?

NOTE: If your current health insurance plan provides maximum protection, you may want to think twice about buying personal injury protection. Otherwise, you may have insurance overlap; paying for coverage you do not need. Or, if you reside in a state that mandates PIP, only purchase the minimum amounts required for compliance purposes.

Shopping for Personal Injury Protection

First, contact your auto insurance agent and ask whether PIP is available in your state; if it is, start talking about how much it would cost to add it to your current policy.

If the premium hike seems to high, and you still want PIP coverage, consider shopping around and comparing rates with other providers.