Personal Injury Protection (“PIP”) is a coverage option you can purchase on an auto insurance policy. It pays for medical expenses, lost wages, loss of household services and funeral expenses following an accident, regardless of who is at fault.

Depending on your auto policy type and the state you live in, minimum PIP coverage typically pays up to $10,000 in “reasonable and necessary” medical bills; $10,000 in lost wages, which is paid at amount of up $200 per week after the first fourteen days following the accident; $2000 in funeral expenses: and $5000 for loss of services, which is subject to a maximum of $40 per day and $200 per week.

Loss of household services would be such items as housekeeping or yard maintenance. In the event you are injured and unable to perform such tasks, your insurance company may reimburse you for these expenses up to the amount of the specified PIP limit.

Liability coverage is mandatory in 48 of the 50 states. PIP is not mandatory coverage but an important for of coverage nonetheless. It is a great benefit if you are injured in an accident. PIP will cover you regardless of who is at fault for the accident. Following an accident, you may be faced with significant medical expenses and unable to work. PIP can help cover these expenses.

While your health insurance, if insured, may be able to cover treatment caused by a motor vehicle accident, it does not cover all treatment. It may have limitations on coverage or not cover chiropractic or massage treatment.

Following an accident, PIP insurance is the primary form of insurance for medical coverage. Your health insurer would likely make you provide proof of no PIP coverage. They would only pay medical expenses in the absence of coverage. Once the PIP coverage has been exhausted, health insurance would pay for additional medical expenses per the terms of the policy.

Because PIP is such an important type of coverage, some states require you to waive PIP coverage in writing. Auto insurance companies are required to keep a copy of your signed waiver and may have to pay PIP benefits in the absence of a signed waiver form denying coverage.

You also typically have the option of purchasing higher limits of PIP coverage from your auto insurance company. For example, in Washington State, the higher optional level of PIP coverage pays up to $35,000 in medical bills; $35,000 in lost wages, paid at amount of up $700 per week after the first fourteen days following the accident; $2000 in funeral expenses: and $14,600 for loss of services, which is subject to a maximum of $40 per day.

PIP coverage may also apply in bicycle or pedestrian accident claims. A bicyclist or pedestrian injured by a vehicle is typically covered under the PIP provision of the driver’s insurance policy, regardless of fault. If the driver that strikes a pedestrian or bicyclist does not have insurance or is underinsured, the injured person may be able to use their PIP coverage or their parents’ PIP coverage to help pay for damages such as medical bills and lost wages following an accident.

Children can also be covered under their parents PIP policy. Depending on the state they live in, if for example, a child who was walking or on a bicycle was struck by a driver that did not have PIP, they may be able to use their parent’s PIP coverage.

Some auto insurance companies also offer med-pay coverage, which is different than PIP. This is more limited coverage and covers medical bills only up to specified amount, typically $5,000 and no other losses.