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.