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Does auto insurance cover my medical bills?

  • Writer: Alex K
    Alex K
  • Oct 30, 2024
  • 4 min read

Updated: Oct 31, 2024



When you think of car insurance, you probably imagine covering damages after an accident. But what about your medical bills and other personal costs? That’s where Personal Injury Protection (PIP) steps in. PIP, often called “no-fault” insurance, covers medical expenses for you and your passengers, no matter who’s at fault. But PIP goes beyond just covering hospital bills—it can be a financial lifesaver.


What is PIP?


Personal Injury Protection (PIP) is a type of car insurance that covers medical expenses, lost wages, and other related costs if you or your passengers are injured in a car accident. In fact, according to the Insurance Information Institute, PIP can cover up to 80% of medical expenses and a portion of lost wages after an accident, even if you're not at fault. In some states, PIP is mandatory, while in others, it’s an optional but smart coverage to have.

PIP typically covers $10,000 to $50,000 in expenses, depending on the state and your policy limits. But some policies may offer higher coverage limits if needed.


What Does PIP Cover?


PIP covers more than just medical bills, making it one of the most comprehensive options for personal protection. Here’s a breakdown of what it covers:


  • Medical Expenses: PIP can cover hospital bills, surgery, rehab, and ongoing treatments. For example, in Florida, where PIP is mandatory, it covers up to 80% of all necessary and reasonable medical expenses resulting from an accident.


  • Lost Wages: One of the most critical components of PIP is coverage for lost wages. According to the National Safety Council, the average cost of lost wages due to traffic injuries is $1,150 per person. PIP helps bridge the gap if you’re unable to work while recovering from injuries.


  • Funeral Expenses: In tragic cases, PIP may also help cover funeral costs. The National Funeral Directors Association reports that the average cost of a funeral in the U.S. is about $7,640—PIP can help ease this financial burden on families.


  • Essential Services: If your injuries prevent you from handling daily tasks like cooking, cleaning, or childcare, PIP can cover the costs of hiring someone to help out. According to Forbes, PIP may reimburse up to 100% of these necessary service costs, depending on your policy.


Who Needs PIP?


PIP is essential for drivers who want extra financial protection. Even if you have health insurance, PIP can be a lifesaver because it often covers things your regular health insurance won’t—like lost wages and essential services. Studies show that the average car accident-related medical expense can be more than $3,000, and without PIP, you could be responsible for those costs upfront.

PIP is particularly beneficial in states with mandatory no-fault insurance laws, like New York, Michigan, and Florida, where it’s required to carry this coverage.


Is PIP Required in Your State?


Some states require PIP as part of their no-fault insurance laws, meaning each driver’s own insurance covers their medical expenses, regardless of fault. In Florida, for instance, PIP is mandatory and covers up to $10,000 in medical and disability benefits per person. States like New Jersey, Pennsylvania, and Hawaii also have PIP mandates, while other states allow it as an optional add-on.


How is PIP Different From Medical Payments (MedPay)?


Although PIP and MedPay are both types of medical coverage, PIP offers much broader protection. MedPay only covers medical bills for you and your passengers, while PIP includes additional financial protections like lost wages and essential services.

For example, in no-fault states like Michigan, where medical expenses after a car accident can average around $25,000, PIP ensures you have the financial coverage to manage your recovery without added stress.


How Much Does PIP Cost?


PIP typically adds about $150 to $200 annually to your insurance premium, depending on your location and the coverage limits you choose. In states where PIP is required, it’s often included in your overall premium cost. For the added peace of mind, that’s a small price to pay—especially when considering the high cost of medical treatment after an accident.


Why You Should Consider PIP


Consider this: The National Highway Traffic Safety Administration (NHTSA) reports that the economic cost of car accidents in the U.S. is nearly $277 billion annually. Personal costs, like medical bills, lost productivity, and other expenses, can be overwhelming if you’re not adequately protected. PIP gives you the financial safety net to recover without having to worry about out-of-pocket expenses.


The Bottom Line


Personal Injury Protection isn’t just about medical coverage—it’s about protecting your financial future. Whether you’re in a minor fender bender or a more serious accident, PIP ensures that you and your passengers get the care and support you need, without the added stress of how to pay for it all.


At MapleCoverage, we believe in giving you options that fit your needs and your budget. Whether PIP is required or optional in your state, it’s a valuable safety net to have. Ready to learn more? Get a quote today and let’s make sure you’re fully protected, no matter what happens on the road.

 
 
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