Types of Coverage.

Personal Injury Protection in Auto Insurance Policies

Why You Need a Personal Injury Coverage

Personal injury coverage is more popularly known as personal injury protection. It is a rider to a motor car insurance that is mandatory in most U.S. states. This coverage pays for medical expenses and sometimes even lost earnings, child care and other costs related to an injury arising out of a vehicular accident.

Personal injury coverage is also known as the “no-fault” insurance coverage and this is because the laws and statutes governing this type of insurance are collectively called no-fault laws. This means that the coverage will pay regardless of who was at fault. If a claim is made under the personal injury coverage, it will not have an impact on your insurance premiums.

Personal injury protection may also refer to any type of insurance that would include protection for personal injury, emotional distress, defamation or libel as contrasted with coverage for bodily harm only. But personal injury protection as a part of the automobile insurance is a requirement in a number of states. The actual coverage can differ from state to state. The difference is in terms of what is being covered and what treatments can be considered reasonable and customary. For instance in the state of Utah, acupuncture is considered a permissible medical treatment, whereas it is not in the state of California. There are states that will allow a personal injury protection claim to be filed alongside a workers’ compensation claim, while other states would not allow this.

There are states where a personal injury protection claim may undergo the process of subrogation, which means that your insurer will cover your loss and will attempt to recover what it has paid from the insurer of the party who was at fault. This will leave you in a good financial position as your medical bills will be settled while your insurer goes after the other party’s insurer after they have covered your costs.

Your personal injury protection can provide protection within a specified time and dollar limit. It will also cover the funeral or medical expenses of the injured as well as the passengers in the vehicle at the time of the accident. It can even cover the funeral or medical expenses covered by pedestrians who were run over during the accident. The most basic coverage of personal injury protection insurance is the insured’s injuries, regardless of who was at fault.

The states that do not require personal injury protection require another form of coverage, which is called auto medical payment coverage. Personal injury protection limits can range from as low as $1500 to as high as $250,000 and this depends on the extent of the injury and the prevailing laws in the state where it occurred.

Claimants in a vehicular accident would do well to provide their own personal injury protection insurance information to their medical providers because third party carriers have no legal obligation to pay for the medical bills of the claimants, while first party carriers are. The third party insurers are only obligated to pay after a judgment is made against them. Paying for a claim with a third party insurer is referred to as voluntary payment.

Personal injury coverage is a no-fault insurance covering medical expenses. The policy varies in terms of which medical expenses are covered and what the limits are per accident per person. Insurers choose the medical expenses they will cover and what they will consider as necessary and reasonable. The phrase necessary and reasonable differs from state to state. You can expect coverage by a personal injury policy to include most medical costs, hospital bills, income replacement, lost earnings, and funeral costs.

There are insurers that offer coverage for child care expenses as well as bodily injuries resulting from the accident and this is regardless of who was at fault. It would be a good idea to discuss these details at length with your provider before deciding to purchase the plan.

Depending on your existing motor insurance coverage and the requirements of the state you live in, you can purchase personal injury protection for every member of your family who rides any motor vehicle. There are states that will require you to purchase some form of personal injury insurance even if you already have comprehensive and collision coverage. Before you purchase personal injury insurance, it might be a good idea to check what you already have first. Disability insurance will provide protection for the exact same risks as that of a personal injury coverage.