What’s the meaning of PIP?
PIP stand for Personal Injury Protection.
It is a 1st party claim. Which means, it is a coverage that protects the driver and passengers in your car.
It does NOT go to anyone else. Again, it is ONLY for the driver and passengers in your car.
So if someone hits you, and the accident is NOT your fault, you can claim your PIP.
If YOU hit someone, and the accident IS your fault….you can STILL claim PIP.
Because it is “no fault” coverage. It doesn’t matter who is at fault.
Now…that’s not all.
How much can be claimed?
PIP is typically sold in 3 increments. $2,500, $5,000, and $10,000 coverage.
There are some rare scenarios where the PIP coverage is higher.
Each increment is avail to each person in the car.
So if you and your spouse and your kid are in the car, and you have $2,500 of coverage, then EACH person can claim $2,500, a total of $7,500.
Now for a few dollars more per year, you can get the $10,000 coverage.
So in the same example, each person can claim $10,000, a total of $30,000!
Yes, there is a HUGE difference. So always get the $10,000.
What does it pay for?
PIP payment goes towards 4 things:
1. Funeral expenses related to the accident (we hope you don’t fall in this category).
2. Any hired domestic help. Help you need with laundry, the garden, etc., because you are injured and cannot do it yourself.
3. 80% of lost wages due to this accident
4. Medical expenses that arise from this accident
