Medical Payment Vs Personal Injury Protection: You Can Add PIP When It’s Not Mandatory In Your State


First Party’ coverage for car insurance is related the coverages that the policy offers to the insured and not to third parties or other persons. The two most important components of car insurance coverage include Personal Injury Protection (PIP) and Medical Payments (MedPay). The type of insurance coverage you choose will vary depending on the state and what they request. These two types of insurance coverage are very different and can have a significant impact on any car insurance claims. Both Personal Injury Protection and Medial Payments Insurance are considered “first party coverage.” It applies to the insured, members of their household, passengers and other individuals as needed.

Understanding Medical Pays (Medpay) Medical payments Coverage is required in certain states that don’t have ‘No fault’ laws. Med Pay Coverage covers reasonable medical and burial expenses for bodily injury or death caused by a car accident. A car insurance policy declaration page will contain the limits of liability for MedPay Coverage. The coverage for medical payments is limited. This applies to any accident-related qualified injury. Med Pay Coverage allows the injured party to get medical treatment without having to worry about the cost. Although the most common limits for Medical Pay are $1,000- $5,000 per person, some preferable companies have a limit of $25,000 or more. Some companies may have a maximum of $1,000 per person. Comparing auto insurance quotes is best done when there are low medical and liability limits.

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Understanding Personal Injuries Protection (PIP). Who is responsible for covering bodily injury in an auto accident? The other driver or you? The person who caused the damage is legally responsible for all damages in states that use the “tort liability system”. Who will pay for your injuries if you are partially responsible for an accident? PIP policy was created to address this issue. The “no fault” state that adopts PIP policy is called it. 15 states, plus the District of Columbia, make it mandatory to follow the “no fault” system. Therefore auto insurance policies must include Personal Injury Protection (or PIP). These are the following states: Delaware, Florida. Hawaii, Kansas. Kentucky, Massachusetts. Michigan. Minnesota. New Jersey. New York. North Dakota. Oregon. Pennsylvania. Texas.

Coverages and Limits: Although the minimum coverage limits for PIP vary between states, they generally cover most injuries-related expenses. This includes medical expenses, lost income due to injuries, compensation loss, funeral expenses and death benefits. PIP also covers bills related to certain psychiatric services in connection with injuries, physical and occupational therapy, as well as any rehabilitation costs associated with auto insurance claims. No-fault insurance does not cover damages like pain and suffering, emotional distress, or inconvenience. PIP also does not cover any injuries resulting from work-related car accidents. If you are in a state that is ‘no-fault’, you should not have both Med Pay and Pep insurance. There is a duplication of coverage. PIP insurance offers more coverage in the event of a need for medical treatment related to an accident that occurs, regardless of fault.

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PIP Deductible – Most people living in “no fault” states have been accustomed to the PIP policy without deductibles. However, there are many companies that offer PIP with deductible.

Illinois is not a no-fault state, but insured people can get this coverage

Illinois is one of the few states that still has the “tort liability system” in which car-related law suits are not limited. You must sue to get compensation for bodily injuries. If your opponents are negligently irresponsible, you could win. Medical payment is more important in Illinois because you don’t have to sue anyone to get it.

PIP is an important coverage and far better than the very limited coverage provided by auto policies without the PIP component. Remember that Illinois and similar states are not considered ‘at fault’ states, which does not mean that PIP is unavailable to insured persons. An automobile policy that is offered in an Illinois state of no fault does not prevent auto insurance companies from amending their policies to add the PIP coverage as an optional option. With the fierce competition among car insurance companies it is not possible to add the PIP Amendment to your policy. This is because few car insurance companies will offer the option. Ask your agent if you feel this coverage is worth the extra cost. Only a few companies provide this coverage in no-fault states.

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