If you own or lease a car, you have had to go through the process of purchasing an insurance policy, after all, it is required by the majority of states. You also know that your policy is needed to help pay for covered losses which might include the other driver’s medical bills and damage to their vehicle or other property, should you have an accident. It is also necessary for you to have an insurance policy if you need to pay legal fees should you be taken to Court after the incident.
Buying an Insurance Policy
Nowadays, buying a car insurance policy may seem to be easier due to so much information and so many tools available online. However, many people looking for a policy are confused by all the options and all the unfamiliar terms related to car insurance policies. Not understanding clearly what they are buying, may have some people purchasing a policy that will not cover the items they would have liked to have covered and in other cases they may end up purchasing policies that are insufficient to cover their needs.
To clarify the meaning of some of these confusing terms, let’s explore no-fault and PIP insurance and find out what they cover, if they differ and why they are needed.
No-Fault and PIP Insurance
It’s interesting to note that no-fault car insurance is also known as PIP or personal injury protection coverage. This policy’s main aim is to help pay the costs of medical expenses incurred either by you or your passengers as a result of an accident. The advantage of this policy is that it applies to anyone in your car, not taking into account who was responsible or at fault for the collision. This means that a PIP policy will also help pay for your medical expenses even when someone else backs into your car and you suffer an injury.
Even though your PIP will not cover property damage, it will help you when it comes to:
- Covering medical bills
- Taking care of health insurance deductibles
- Covering wage losses, should your injuries prevent you from returning to work
- Paying for such essentials as childcare, grocery shopping or house cleaning, should you require these services
- Should one of your passengers lose their life in the accident, it would cover funeral expenses
How can you estimate how much you PIP coverage limit should be?
It is important to pick a PIP coverage limit that is adequate for your needs. To make the right decision, take a look at your health insurance and become familiar with your deductibles. Additionally, consider what would happen to your family if you are injured in an accident. Will they be alright without your income? Will essential services be covered? Understanding these amounts will help you buy the right amount of coverage.
If you do purchase a no-fault insurance policy, you can rest assured that, should you find yourself in an accident, your PIP insurance will be there to cover your medical costs. It will also be there to pay for injuries suffered by your passengers.
If you are in an accident and there are injuries, you need the advice of personal injury in Miami that can guide you through this complicated maze. 1-800-Injured is an attorney and medical referral service.