Personal injury protection (PIP) coverage implements the no-fault concept. No-fault auto insurance is designed to speed up payment to accident victims and lower the cost of auto insurance by reducing the number of lawsuits for minor claims. If you live in one of the following states, you are required to buy PIP coverage:
Oregon and Washington
Understanding PIP Coverage
If you live in a state that has no-fault insurance laws, you are required to buy personal injury protection (PIP) coverage. A PIP policy is an extension of auto insurance coverage that reimburses for expenses resulting from an automobile accident without regard to fault.
PIP coverage implements the no-fault concept. No-fault auto insurance is designed to speed up payment to accident victims and lower the cost of auto insurance by reducing the number of lawsuits for minor claims.
What Does PIP Cover?
PIP covers reasonable and necessary medical expenses for those named in the policy—such as you, your family, others riding in your vehicle, and other authorized drivers— for injuries sustained from an automobile accident, income replacement and funeral expenses.
Payments are made for costs incurred by the injured person by the insured’s own insurance company. Please note: A PIP does not cover pain and suffering.
If you carry PIP on your automobile it applies to all autos that you insure, and there is a premium for each auto. We can provide more detailed information about the price of coverage.
How Much Protection Does PIP Provide?
Specific limits and coverages vary by state. Some states offer limits and others set specific limit amounts, such as $10,000. Total payments covered by PIP are set by the limits indicated, which are the maximum amounts that will be paid per person for any combination of covered expenses.
Medical Payments Coverage
PIPs are available only in certain states. Medical payments coverage, like no-fault coverage, also pays reasonable medical bills and funeral expenses, if necessary. This coverage is also available regardless of who is at fault.