Personal Injury Protection (PIP) is insurance coverage offered to vehicle owners. In some states, usually called no-fault states, it is a legal requirement. Essentially, PIP is designed to cover medical expenses or lost wages related to a car accident for drivers, passengers, or even pedestrians. It could also cover death benefits and funeral expenses.
PIP kicks in immediately after an accident. However, it is subject to a limit of liability. If your medical bills exceed your specified limit, you might need to turn to other avenues to pay the balance. These include your health insurance or a settlement from a personal injury claim.
If you have questions regarding this matter, contact expert Los Angeles Personal Injury Attorneys with El Dabe Ritter Trial Lawyers.
What is a PIP Deductible?
Some PIP insurance providers offer the option of a deductible. Depending on the policy and where you live, it could range from $500 to $2,000. The larger the deductible on your coverage, the less you have to pay for it. This is one reason most people go for a policy with a 2,000 deductible.
While this might seem economical at first, it could cost you if you get into an accident. An injured person with a 2,000 deductible on their policy will not receive any money for the first $25,000 of their medical expenses. Any expenses after that will be covered at 80% for every dollar.
If you don’t have a deductible, you will receive 80 percent of all your medical expenses.
Should You Get a PIP Deductible?
As mentioned above, a personal injury protection deductible reduces the amount you have to pay for your coverage. A high deductible means you will pay less annual premiums than one with a lower deductible or none. This can be economical in the long run if you never get into a car accident. However, accidents are unpredictable. They can happen to anyone.
If you get into an accident, your deductible could come back to haunt you. It could significantly reduce your reimbursement amount. Where your medical expenses don’t reach your deductible amount, you could be forced to pay for them out-of-pocket.
A policyholder with no deductible, on the other hand, will pay higher annual premiums. This is usually more expensive than other insurance coverages such a MedPay. However, if they get injured in an accident, their PIP policy will cover 80 percent of all their medical bills.
Overall, it is advisable not to take up a deductible on your PIP policy. However, the choice is yours. Evaluate your financial goals and consult an attorney before settling on a plan.
PIP is designed to cover medical expenses or lost wages related to a car accident for drivers, passengers, or even pedestrians. The larger the deductible on your coverage, the less you have to pay for it but that could cost you more if you get into an accident. In some states, usually called no-fault states, maintaining PIP is a legal requirement.
Contact a Personal Injury Attorney
PIP policies offer excellent protection to drivers in no-fault states. They allow injured victims to get medical coverage without having to determine fault. They are also faster to claim and can cover a percentage of lost wages related to the accident.
Nonetheless, a personal injury protection deductible can affect your claim to coverage. This is why it is vital for you to have an attorney go over your policy before you get it.
Are you having problems with claiming your PIP insurance? Contact El Dabe Ritter Trial Lawyers to schedule a consultation with top Personal Injury Attorneys in Los Angeles.