Personal injury protection is a no-fault insurance. This insurance covers lost wages and medical care for those who are injured in auto accidents. Also known as PIP insurance, it’s normally part of your auto insurance or health care plan.
The great thing about PIP coverage is that it pays out regardless of fault. This is because New Jersey has a no-fault law. If you have PIP coverage, you will receive coverage upon being injured.
How much does PIP insurance cover?
When you buy PIP insurance, you’ll have to select policy limits. Every policy is a little different, but a basic policy gives you $100 per week of lost wages for up to 52 weeks. It will also cover necessary services, such as lawn care, at a rate of up to $12 per day and a maximum of $4,380.
Medical coverage provided by PIP includes coverage for:
- Surgical care
- Treatment through religious methods
- Rehabilitative and diagnostic services
- Medications and prescriptions
- Ambulance and hospital services
PIP also provides funeral benefits and death benefits. With these benefits, the next of kin is eligible for the person’s maximum lost income benefit as well as the essential service benefit. They also receive up to $1,000 in funeral coverage.
Do you have to have PIP insurance in New Jersey?
Yes, the law in New Jersey requires that car insurance contains PIP coverage. The minimum for this coverage, legally, is $15,000. However, you can also upgrade to a better plan that offers more significant coverage.
With a basic or standard policy, you will receive up to $250,000 for certain injuries. On the basic policy, the maximum is $15,000. For the standard policy, the coverage can be as high as $250,000 (and sometimes more) per person, per accident.
Personal injury protection can help you if you’ve been involved in a crash with someone who did not have insurance coverage or if you need additional coverage because they don’t have enough coverage. PIP can help you get the coverage you need, so that you can focus on your recovery instead of lost wages or other concerns. Make sure to understand your policy and rights before you accept a settlement from this plan.