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Personal Injury Protection vs. Medical Payments…Which Do I Need?

By August 10, 2019 March 2nd, 2020 Insurance
What is personal injury protection (PIP)?

Personal injury protection, or “PIP,” is one of the coverages on a personal auto policy. It reimburses you for costs related to the treatment of injuries you receive in an accident, up to a chosen dollar limit. It also covers any passengers in your car at the time of the accident. In some states, PIP may cover things like lost wages and rehabilitation costs.

What makes the coverage unusual is that it applies no matter who caused the accident. So, you may start to be reimbursed for medical bills even before the insurance companies determine who is liable.

PIP is primary. This means that any health insurance you have — whether private or government-sponsored — will only “kick in” once the PIP limit is reached.

What is medical payments coverage?

Medical payments (sometimes called “medpay”) cover hospital bills and funeral expenses, up to your chosen limit, if you’re in an accident. Your insurance company pays regardless of who is determined to be at fault (responsible). It even covers your passengers at the time of the accident.

Medical payments are similar to personal injury protection (PIP) coverage, which is offered in about 15 states. However, unlike PIP, medical payments will not reimburse for lost wages.

When in doubt, call your trusted agent.  We can help determine the right coverages for you!