Have you ever heard that Minnesota is a NO Fault State and wondered, What does that mean?? It has to do with Personal Injury Protection or PIP coverage. Keep reading to learn more about this....
Personal Injury Protection, or “PIP,” is one of the coverages on a personal auto policy. It reimburses you for costs related to the treatment of injuries you receive in an accident, up to a chosen dollar limit. It also covers any passengers in your car at the time of the accident. In some states, PIP may cover things like lost wages and rehabilitation costs.
What makes the coverage unusual is that it applies no matter who caused the accident. So, you may start to be reimbursed for medical bills even before the insurance companies determine who is liable.
PIP is primary. This means that any health insurance you have — whether private or government-sponsored — will only “kick in” once the PIP limit is reached.
Do I need PIP?
PIP is required in states that have no-fault or tort auto insurance laws. About a third of states have these laws in effect. The coverage is optional in a handful of other states.
The minimum limit of PIP coverage required in Minnesota is $20,000 for Medical coverage and $20,000 for Non-Medical coverage. If you have multiple vehicles on your auto policy this coverage can be stacked to provide you with additional coverage.
How much PIP should I buy?
Some things to consider when selecting PIP coverage limits:
•How good is my personal health insurance? If you have low-deductible/high quality health insurance, you could consider lower levels of PIP.
•Do I have life insurance? If you have a family but don’t have life insurance, know that PIP could help them cover expenses if you’re in a fatal accident.
•How would I make up for lost wages if I can’t work? If you’re unable to work due to an injury from an auto accident, PIP could help make up for lost wages.
What if I’m still unsure?
If you still have questions, or are unsure how much PIP is right for you, contact us. We are here to help you choose the coverage levels you need to protect yourself, your family, and your car.