Personal Injury Protection Coverage (PIP)

I recently met with a new auto accident client, and this person asked me why he was receiving bills from a doctor who had treated him for injuries he suffered in a motor vehicle accident. This client thought that his personal injury protection insurance was supposed to pay for all of his medical bills. This is a question that is asked often the first time I meet with an auto accident client.

Everyone needs to be aware that standard personal injury protection coverage (“PIP”) on your auto insurance policy only pays 80% of a bill you have incurred as a result of treatment for an accident. You are responsible for the other 20%. Also, your PIP will stop paying bills once your PIP has paid $10,000 for your accident related bills. You are responsible for any unpaid medical bills once your PIP is exhausted.

You should ask your automobile insurance agent for additional PIP and/or a coverage called “Medical Payments” coverage, which will pay the 20% of the bill that PIP doesn’t pay (up to your chosen policy limit), plus medical bills over and above the first 10,000 of PIP coverage.