Insurance is an indemnification or coverage that a government or company provides as settlement for any loss, injury, illnesses, death or damages in exchange for a premium payment that an individual makes before the incident.
Accidents always happen without warning and to have security from any possible financial loss people buy insurance. There are many types of insurance such as the motor, home,accident, life, travel, etc. However, what we will tackle here is a kind of insurance that caters to personal injuries caused by car accidents – the No-Fault PIP insurance coverage.
What is No-Fault PIP Insurance Coverage?
No-fault insurance is a kind of insurance coverage which pays an individual notwithstanding who is responsible for the accident.
PIP No-fault Insurance Key Points
PIP pays for all the expenses incurred by the insured individual. That covers medical and hospital bills, lost wages if the person is working, expenditures in the house, and child care while the injured person is in the process of recuperating.
In cases where an injured person passes away, PIP will cover the expenses for the funeral and all other things.With the no-fault insurance laws, motorists can file claims under particular conditions. These conditions, called threshold, will have corresponding values according to the severity of the damage. All calculated values will fall within the pecuniary limit. Also included here is the payment for the sustenance during the period of an injure’s infirmity as a result of the accident.
PIP in some states of the U.S. is mandatory while in some countries, it is optional for an individual to apply for this safety protection insurance. A PIP insurance will save you from all the trouble of paying damages, hospital bills and financial losses when you get into an accident.
More importantly, be fully aware of your chosen insurance company’s policy and coverage.Listster Frost Injury Lawyers from Idaho, reports that more than fifty percent of those who reached them for insurance issues didn’t really know how far their insurance company really covered.
How Does a PIP Claim Function?
Let’s take a look at an example to understand better how PIP works. Say, for instance, you got into a car accident, and the other driver is responsible, and here are the following scenarios:
-Your state has $2,000 limit for medical bills for the person with no health insurance while for
people with insurance; they can avail $8,000.
– Your state mandates insurers $5,000 payment for lost earnings.
– You have availed health insurance.
– You were charged for hospital bills $4,000 and lost earnings of $1,000.
– Your state requires $5,000 remuneration on hospital bills for people who got injured before they’re able to file a claim against the offender.
Since you have a health insurance, the $2,000 hospital bill should be submitted to the car insurance company and the rest of the amount to your health insurance provider. For the lost earnings, your selected car insurance company will give you $1,000. And since your medical bills only totaled to $4,000, you were not able to comply with your state’s minimum requirement of $5,000 to file a case against the reckless driver.
So in this particular instance, you are unable to file against a reckless driver that hit you due to the state’s threshold provision about car accidents. The only things you can claim are coverage for the bills incurred due to the accident and the earnings that you would lose as a result of the crash.
In conclusion, it is essential that you always cooperate with your PIP insurer; that is the law’s mandate about PIP No-fault insurance. The state usually demands a recorded account of what transpired before and after the accident and requires you to have a physical examination by a licensed physician or medical center chosen by PIP No-fault insurer. In case you will not agree or cooperate with these processes, PIP insurer has all the rights to withhold your entitlement to your PIP No-fault insurance.