What States Require PIP Insurance Coverage

PIP insurance, or personal injury protection insurance, was invented to eliminate the process of the driver deemed not to have caused an accident having to sue the other driver's insurance company to cover damages. This is called a no fault car insurance system, and it has been adopted by many states in the US. Some states are opposed to PIP insurance coverage because it limits the individual's right to sue, but it has been adopted in some states because it results in quicker and less complicated settlements of claims. It also reduces premium costs by lowering legal fees and court costs. Since the no fault system doesn't allow you to sue people who crash into you, you are required to buy PIP coverage in the states that use this system.

States that Require PIP Insurance Coverage

Along with the District of Columbia, there are fifteen states in the US that use the no fault system and require you to buy PIP insurance coverage:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Texas
• Utah

Each of these states requires a different minimum for PIP coverage, so if you live in one of these states you should familiarize yourself with the insurance laws.

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PIP insurance coverage will pay you a certain percentage of the value of the damage caused when you were not at fault in an accident. PIP insurance will also cover the costs of transportation to the hospital and other costs associated with personal injury.

Related Questions and Answers

Personal Injury Protection coverage is not required by all states, so make sure your state requires it before you purchase coverage. PIP basically covers the cost of medical treatments for the driver and passengers. This type of coverage is especially important for anyone who does not have medical insurance. You can be held liable for your medical costs, which can be significant if you are in a major accident. If you have medical insurance you should purchase the minimum required. The majority of insurance companies will not sell more than $25,000 worth of PIP coverage, so your choices are pretty limited.

Yes, there are a number of websites that have examples of a personal injury settlement letter. Injury Settlement Guide has a good example you can look at. These letters spell out your side of the accident and provide an account of your medical bills. You should also include any lost work time, and an amount that you feel is fair for your pain and suffering. It is important to remember that these letters are only a starting point. The insurance company will do their own investigation, will negotiate on both your medical bills, and any pain and suffering amount. If you are dealing with a high value case, it is best to hire a lawyer.

Property damage in a car accident is covered by property damage liability. This type of coverage protects you from damage you cause to another persons car, house, or even fences. In most cases the damage would be to another person's vehicle, but there are many cases of fences or other property being damaged. Most experts recommend carrying at least $50,000 in property damage insurance. If you are underinsured, you can be sued for the balance of the property damage. Property damage can quickly get expensive if you total a person's car, or drive your vehicle through a house. In most states, property damage liability is required.

The cost of personal injury car insurance will vary for each individual driver. Insurance companies will take your driving record in to account, as well as your credit rating and the type of vehicle you are driving. PIP insurance tends to fall into the middle group as far as expenses. It is not the most expensive coverage, but it is not the cheapest. As an average, budget roughly $5.00 to $20 per month for this coverage. The cost will vary depending on the amount of coverage you wish to purchase. PIP is not required by many states. If you have adequate health insurance, this coverage is often not necessary.

No, personal injury coverage helps cover the cost of your medical bills as well as other passengers in your vehicle. It will also help cover the medical costs of injured pedestrians but it does not cover the other party involved in the accident. In addition to medical bills, PIP will often cover lost wages and funerals. PIP usually covers the driver first, and if there is coverage left it can be used for the passengers in the vehicle. This type of coverage is often a supplemental to health insurance. If you have high quality health insurance, PIP is often not necessary.