what is the difference between PIP coverage and bodily injury coverage?

There are many different types of products that automobile insurers are currently offering. Due to this fact, consumers commonly ask questions like, “What is the difference between PIP coverage and bodily injury coverage with car insurance?”. Understanding how each type of protection works is essential for making informed purchasing decisions. Buyers can make sure that their plans are fully representative of their needs.

PIP is actually short for personal injury protection. This is a protection that is reserved solely for the insured, particularly in instances in which he or she is at fault for an automobile accident or has been involved in a crash with a person who is uninsured or under-insured. It will cover damages when no other types of protection exists.

This cover will handle all medical costs that they insured incurs as the result of injuries sustained in these events, up to the limits specified by the policy. In some areas and instances, this will even cover any lost wages so that the insured is not placed at a financial disadvantage due to his or her injuries and the necessary recovery period. Without this protection, people who are at fault or have been injured by uninsured motorists would have little or no recourse.

Bodily injury, however, is designed to meet the needs of the other driver. It is legally required for all motorists to have this and there are specific, legal specifications concerning the limits of this coverage in all areas. This will provide the same protections that are granted by the PIP cover, however, it will provide them to any other motorists that have been involved in these evens, apart from the insured.

This is the portion of the policy that claimants will rely upon when filing their claims. It can cover medical costs and it may afford protection for lost wages resulting from the injury. Given that this is a standard part of the legal requirements for automobile cover, all drivers must have it as well as property damage liability for ensuring that damage to the other party’s car is accounted for.

Personal injury protection is often an optional expense. This is an add-on that drivers can buy to protect themselves from events that may not be reflected in a more basic policy. While it usually reflects a fairly nominal, additional cost, it is generally well-worth the investment. The benefits it provides drivers with are more than worth the investment, particularly when drivers find themselves responsible for accidents or involved crashes with drivers who are not properly insured themselves.

Basic car insurance policy for drivers over 50 years old

Basic car insurance policy for drivers over 50 years old

A study done in 2012 by the National Highway Traffic Safety Administration revealed that a crash at 31 miles per hour, a woman aged 50 years old would have 10% chance of being seriously injured while an 80 year old would have a 40% risk factor. People over 50, while generally safe from DUI and speeding accidents tend to be very vulnerable to other types of accidents especially left-hand turns and cross traffic.

Basic car insurance for this age group generally focus more on aging and the layering of age-related problems like reflexive action and being able to react in enough time to prevent an unexpected situation. However, there is a growing population of drivers aged 50 and older who are responsible, alert, and physically fit to drive. There is also a greater number of older drivers on the road who would feel lost without their driver’s license, enjoy the feeling of being independent and free to drive whenever and wherever they want.

Most insurance companies understand this and give due respect to older drivers with a more appropriate car insurance plan.

First of all, 50 is not old. But, vision can be problematic especially at night and there are other physical conditions that can affect a person at this age. Fortunately, 99% of the common aging problems at age 50 are easy to find solutions for so driving will not be impaired. The primary advantage for drivers over 50 is experience and most car insurance companies welcome drivers with experience with special discounts. The discounts will depend on the following:

  • Driver’s record
  • Whether the driver has taken a recent defensive driving course
  • Driving time behind the wheel for low mileage discount
  • Type and year of vehicle

Unfortunately, the rates will increase with age because of the higher risk factors related to aging. There are ways to keep these higher rates from affecting your insurance budget. You could raise deductible, review your coverage and remove unnecessary coverage, and change the primary driver to a younger person like your children or spouse.

Signs that you should consider cutting down on your driving hours include declining vision, slow to react, loss of focus, and a tendency to get lost when driving or near misses.

There are a few myths about older drivers that you can debunk in case they are ever thrown at you. They are”

  1. Older drivers are less cautious, tend to get tired faster, drive slower, and are sheltered – In the UK, 19% of all licenses were issued to drivers 50 years and older and definitely 19% of the driving population are not overly caution, slow, or unusually tired.
  2. Compulsory retirement is gone – No, once you reach a certain age, the agency that issues drivers’ licenses have a procedure to check whether a driver in his 50s or older is competent enough to be behind the wheel. If you do not pass the test, you will be denied a driver’s license.

In addition, drivers past a certain age must report health problems or treatments that may affect driving skills. This does not mean that the driver’s license is automatically revoked or the car insurance is not renewed. It only means that further questioning and documents will be required to prove driving competency.