What is PIP Insurance?

What is PIP Insurance?
November 1, 2016 Jon Muranaka

What is PIP Insurance?

 

What is PIP?

Simply put, Personal Injury Protection (PIP) insurance is a type of insurance that will help pay the medical costs for injuries as a result of a car accident including your passengers’ injuries – regardless of who was at fault for the accident The intent is to lower the cost of auto insurance by addressing the small claims out of the courts.

This is one of the most common insurance coverage among no-fault states, such as Hawaii.  PIP coverage protects drivers from delayed payouts for their injuries.  Minimum coverage limit depends on the state – in Hawaii, it’s $10,000 per person. Talk to your agent, higher limits may be available.

Hawaii is one of 16 states that requires PIP. Other states with varying degrees of difference in coverage include: Arkansas, Delaware, Florida, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah.

How Does It Work?

If you’re in a car accident and you or your passenger are injured, report the accident to your insurance company. PIP coverage may also cover injuries if you are hit by a car as a pedestrian or biking.  

Consider a deductible for your PIP limit. It may help you save money.

Why PIP Is Important

Imagine you are in a car accident and you didn’t have insurance. You will probably have to pay for your medical bills, even if you are not at fault. You may have health insurance for yourself and your family, but what about the passengers in your vehicle? What if they are not covered by health care – how would they receive medical help?

Give us a call at 808-923-8742 (toll free at 1-877-923-8742) to learn more.