Auto Insurance Explained Personal Injury Protection Excess Medical

Auto Insurance Explained: Personal Injury Protection (PIP) and Excess Medical

Auto insurance is probably one of the most important investments you can make in protecting yourself, your family, and your vehicle from financial loss. PIP and Excess Medical are two important components of auto insurance that you should be aware of and understand in order to get the best coverage possible. Knowing what each of these terms mean and how they can help you can help you make the best decisions for your auto insurance needs.

What is Personal Injury Protection (PIP)?

Personal Injury Protection (PIP) is an optional form of auto insurance coverage that pays for medical expenses and lost wages related to an injury that you sustain in an automobile accident. PIP is typically offered as part of a standard auto insurance policy. It pays for medical expenses, lost wages, and other expenses related to the injury, regardless of who caused the accident. PIP is a no-fault insurance, meaning that it pays out regardless of who is found to be at fault in an accident.

PIP coverage is usually offered in two forms: limited and full coverage. Limited coverage typically pays for medical expenses, lost wages, and some other expenses up to a certain set limit. Full coverage provides a more comprehensive coverage, including more than just medical and lost wages, such as funeral expenses, rehabilitation costs, home health care, and other costs.

What is Excess Medical Coverage?

Excess medical coverage is an optional form of auto insurance coverage that pays for medical expenses related to an injury that you sustain in an automobile accident. Excess medical coverage pays for medical expenses that exceed the limits of your PIP coverage. For example, if you have a PIP policy with a maximum coverage of $10,000 and you sustain an injury that requires medical expenses of $15,000, your PIP policy will cover the first $10,000 of your medical bills and excess medical coverage will cover the remaining $5,000.

Excess medical coverage is typically offered as an add-on to your existing auto insurance policy. It is important to note that some states do not allow drivers to purchase excess medical coverage. It is important to check with your insurance provider to see if they offer this type of coverage.

What are the Benefits of PIP and Excess Medical Coverage?

PIP and excess medical coverage offer a number of important benefits. First, they can help protect you financially in the event of an accident. PIP and excess medical coverage can help cover medical expenses, lost wages, and other costs related to an injury. Additionally, they provide peace of mind knowing that you are covered in the event of an accident.

PIP and excess medical coverage can also help keep your auto insurance premiums low. By providing additional protection from financial loss, these types of coverage can help reduce the amount of money you have to pay for auto insurance. Finally, PIP and excess medical coverage can help protect you from lawsuits. If you are found to be at fault in an accident, PIP and excess medical coverage can help protect you from being sued for medical expenses and other costs related to the accident.

Conclusion

PIP and excess medical coverage are important components of auto insurance that you should be aware of and understand in order to get the best coverage possible. These types of coverage can help protect you financially in the event of an accident and can also help keep your auto insurance premiums low. It is important to check with your insurance provider to see if they offer PIP and excess medical coverage.