I get asked over and over, what is PIP, and do I need PIP?
First, what is PIP? PIP is short for Personal Injury Protection (PIP) coverage. This coverage pays for damages and losses after you are in a car accident, regardless of fault. PIP is also known as “no fault” insurance and is required in states with no-fault insurance laws (Not in TX). It covers expenses like medical bills, legal fees, lost wages, funeral expenses and more. However, some carriers will only allow you to get a certain amount of coverage if you already have health insurance coverage (usually $2500-$5000), sometimes more if you do not have health insurance coverage (more than $5000). If you decline this coverage, you must sign a declination form stating this.
Second, do I need PIP? This is a tricky question that only YOU (the insured) can answer. I cannot answer this question for you. Why? This is since your insurance is YOUR insurance and not mine. You need to decide whether you want this added protection on top of health insurance (should you have it) or not (should you not have health insurance, then I would highly recommend this coverage). Either way, I would recommend this coverage to everyone since it is only about $20 every 6 months for this added extra coverage that does help when needed.
Whenever it comes to insurance coverages and what someone should or shouldn’t carry on their personal insurance policies, I always advise people to speak with an experienced insurance professional (like myself) about what they really need and then want. That way they are getting set up with the best policies for the best rates they can. They also are getting exactly what they NEED instead of just pricebased policies like most “agents” sell today.
Hope this helps those tossing around the thought of PIP aka Personal Injury Protection.