PIP, otherwise known as Personal Injury Protection Insurance, covers expenses when a car accident results in bodily injuries to you, as a named insured on your policy, relatives that are members of your household, and your passengers who do not have an automobile insurance policy of their own. These expenses include medical bills, as well as, some other optional expenses you may purchase, such as lost wages.
PIP is often referred to as “no-fault” insurance, and is available in most states with no-fault insurance laws, such as Pennsylvania. These laws eliminate the need to establish fault before covering medical treatment and certain other expenses purchased on the policy, such as wage loss and funeral expenses.
What PIP covers under Pennsylvania Law:
- Medical Expenses (mandatory): Medical expenses will be covered by PIP up to the policy limits. Those medical expenses include: Ambulance services, medical treatment, including surgical intervention, hospital and nursing home stays, medical supplies, including prescription medication, diagnostic studies such as x-rays or MRIs, rehabilitation and chiropractic care.
- Funeral Expenses (optional): This includes the cost of funerals, burials, and cremations.
- Lost Wages (optional): If you or a Covered Insured are unable to work due to your accident-related injuries, PIP can assist you in recovering some of those wages.
Because PIP falls under no-fault in Pennsylvania, your automobile insurance policy provides primary coverage to you and/or a Covered Insured under your policy. Pennsylvania law requires all drivers carry at least a minimum of $5,000.00 in PIP medical insurance. Not only would we recommend that insureds increase these limits, but because wage loss coverage is a separate election, we recommend you also consider including wage loss benefits in case you are unable to work due to your injuries.