No Fault Auto Insurance
Personal Injury Protection coverage (Pip) and no fault is a form of insurance. This insurance is a supplement to what you have. It applies to your automotive policy. It was created to limit the right to sue. You are covered no matter who was at fault. It is often called no-fault. What Personal injury protection covers vary from state to state, but can include:
- Medical Expenses
- Emergency Rescue or ambulance
- Income Loss
- Accidental Death
- Funeral expenses
- Survivor benefits
- Pain and suffering in some states
- loss of “companionship”
Personal Injury Protection (Pip) & No Fault does not cover
Personal injury protection ( PiP) will not cover injuries caused by the following:
- Farm Equipment
- Recreational or off-road vehicles
- Motorcycles (although personal injury protection might be available for motorcycles in some states, it also is very expensive)
It also will not cover intentional injuries caused by the insured, organized racing activities, or while in the commission of a felony.
Personal Injury Protection (Pip) will not cover services that your insurance company decides are not:
- Related to the accident
- Incurred within 3 years of the car accident
What states require No Fault & Personal Injury Protection?
These states include:
- Colorado-5,000 per person, can refuse coverage
- Delaware-15,000 per person, 30,000 per accident
- Kansas-4,500 medical, 4,500 rehabilitation, 2,000 funeral
- Maryland-2,500, can refuse coverage, but must be provided for passengers
- Michigan-see below
- New Jersey-15,000
- New York-50,000
- North Dakota-30,000
- Pennsylvania-5,000, also called medical benefit coverage
- Washington State-10,000, can refuse coverage
Michigan no fault
The Basic No-Fault Policy You Must Buy Has Three Parts:
1. Personal Injury Protection (PIP)If you are hurt in an auto accident, this part of your no-fault policy will pay all of your medical costs. It will also pay up to 85% of the income you would have earned if you had not been hurt,for up to three years. However, the amount that you would be paid for lost income is limited and the limit is revised annually.
Effective 10/1/15, the maximum is $5,398 per month. If you are killed in an accident, your policy will pay your family up to $5,398 per month for 36 months, depending upon what they would have received from your earnings and benefits. In addition, you are entitled to “up to” $20 per day in replacement services. This is to pay for routine household services which injured persons are no longer able to provide for themselves or their families, such as housekeeping and yard work.
2. Property Protection (PPI) No-fault will pay up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences. It will also pay for damage your car does to another person’s properly parked vehicle. It does not pay for any other damage to cars.
3. Residual Liability Insurance – Bodily Injury and Property Damage The no-fault law protects insured persons from being sued as a result of an auto accident except in certain special situations. In general, you can only be sued:(a) if you cause an accident in Michigan in which someone is killed, seriously injured, or permanently disfigured;
(b) if you are involved in an accident in Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan;
(c) if you are involved in an accident in another state; or
(d) for up to $1,000 if you are 50% or more at fault in an accident which causes damages to another person’s car which are not covered by insurance.
minimum coverage offers:
$20,000 for a person who is hurt or killed in an accident,
$40,000 for each accident if several people are hurt or killed.
Up to $10,000 for property damage in another state
These are minimal amounts. You may need more depending on your needs. You might want to discuss this with your agent.
Personal injury protection (Pip) What is the recommended No fault coverage
Personal injury protection (pip) is not required in all states. Make sure the state you reside in requires no fault before you purchase it. Pip is very important if you do not have any medical insurance. Your medical cost could be thousands of dollars if you are in a major accident. You will be liable for these cost. PiP was designed so you would not have to pay out-of-pocket expense. Expense for you or your passengers. If you have any form of medical insurance, purchase the minimal coverage and you should be ok. This is not in all cases, but most. If you have no health insurance, you should purchase the maximum no fault you can afford. This is one of those things you curse when you pay for it, but praise it when you need it.
How much does personal injury protection cost?
Personal injury protection and no fault cost about as much as health insurance in some states. As an average it can cost anywhere from 5 to 50 dollars extra a month. It won’t be the most expensive coverage on your policy, but it is not the cheapest either.
Personal Injury Protection Advice
You may want to consider the following when buying personal injury protection (Pip):
- At least carry the minimal required personal injury protection required by the state for which you live.
- Don’t pay for coverage you don’t need. Review you health and auto coverage’s. If you have more than enough coverage for car accidents, then it might be wise to get the minimal personal injury protection coverage.
- Do you travel with many passengers? such as car pools, picking up other children from schools or church. If you do any of these, you might want to consider getting more personal injury protection (Pip). Not only do you have to cover yourself, but you would be responsible for anyone in your car who was injured in a car accident. Pip will provide you with the extra security, but only within its limits.
- How old are you? If you are middle-aged and well insured, you might just get the minimal personal injury protection required. If you are young and don’t have health insurance or a limited amount, it might be wise to purchase the maximum personal injury protection that you can afford. You don’t want to be young, starting a career and having medical expenses haunt you for years to come.
Accident Doctor can help you if you are injured in a car wreck
Every year thousands of people are injured in car accidents. Some of these people have no idea what to do or who to see. If you have been injured in a car accident, go see an accident doctor today!! Do not wait until it’s too late. An accident doctor can help you with all the paperwork needed to file a personal injury protection claim. They can treat you and get you back to the way you where before the accident.
Talk to an accident doctor today. Do not jeopardize your future to an accident. A lawyer can answer all your questions about personal injury protection in your state. State laws vary, it would be wise to talk to a Personal injury lawyer who practices law in your state, ask your doctor for a recommendation
If you have any questions about Pip, please contact us
A more comprehensive personal injury protection guide can be found here