Your Massachusetts car insurance policy consists of several coverages that help pay for expenses in different situations. One of those coverages is personal injury protection, or PIP. What is personal injury protection in car insurance? Here’s what you need to know about personal injury protection, what it covers, how much coverage you should get and more.
PIP coverage details
PIP coverage is a state-mandated coverage in many, but not all, states, and varies greatly from state to state. It is sometimes referred to as “no-fault” insurance. In Massachusetts, you are required to carry a limit of $8,000 of personal injury protection coverage per person on your car insurance policy. A limit is the amount your coverage will pay up to in the event of a claim.
In Massachusetts, PIP covers medical and other types of expenses including lost wages and substitute services. Check in with your insurance company for specifics.
No fault insurance: How does it work?
No fault insurance is a type of insurance system where each party’s own insurance coverage pays for certain expenses (typically medical expenses), regardless of fault. States with no fault insurance systems are known as “no fault” insurance states.
In no fault states like Massachusetts, your own PIP coverage will be the primary source to help pay for your injuries and medical expenses in the event of a crash, regardless of who is at fault for the accident.
Requirements and limitations
In Massachusetts, PIP is mandatory coverage for insurance policies. Massachusetts is considered a “no fault” state when it comes to insurance law, which means drivers must have their own personal injury protection coverage on their insurance policy.
You may choose to carry a PIP deductible. Your deductible is your share of the cost in the event of a claim. It’s what you pay “out of pocket” before your insurance starts paying. A deductible is not the same as your premium, which is what you pay to maintain your policy. If you choose to carry a PIP deductible, you may see a reduction in your premium- but it will reduce your PIP benefits. You must pay your PIP deductible before the insurer will pay you any PIP benefits.
When it comes to claims, your PIP coverage can pay only up to $8,000 per person minus your deductible. In Massachusetts, PIP is the primary coverage for the first $2,000 of medical expenses. The remaining coverage is secondary after health insurance. For additional coverage for medical expenses beyond the required $8,000, you will need to purchase optional medical payments coverage.
In most cases, PIP covers you, your household family members and in some cases passengers. Keep in mind that PIP does not cover injuries you cause to another person. Your bodily injury liability coverage will help pay for injuries you cause to others, after their PIP benefits.
PIP does not cover physical damage to your car, another driver’s car or any other personal property. To protect your vehicle, you will need collision and comprehensive coverage. Your property damage liability coverage will help pay for property you are liable for damaging in a crash.
Conclusion
Personal injury protection helps pay for the medical expenses of you, your household family members and passengers when injured in a crash. Beyond necessary medical expenses, PIP can help pay for other expenses like lost wages, substitute services and more. PIP is required in Massachusetts.
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