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.

Basics of Auto Insurance and Coverage

Auto Insurance Basics

car insurance basics

Auto Insurance covers cars, trucks, buses, taxis, motorcycles, and anything else that requires a driver’s license to operate. Auto Insurance pays the owner of the vehicle in case of theft and to cover the cost of medical treatment or damages to the car. Insurance policies for autos are broken down into 3 types of coverage: bodily injury, liability, and property damage. This is why you are given 3 figures when requesting for an Auto Insurance quote. Go here if you are in the market to compare.

For example, in Wyoming, the auto insurance is based on the minimum state requirements of 25/50/20 or 25,000/50,000/20,000. The first two numbers represent bodily injury and liability limits while the third figure is the amount for property damage.

All autos that are not fully paid are required by the lenders to get full to almost full (or comprehensive) coverage. As the loan is paid gradually, the lender can agree to lower the requirement on Auto Insurance. For autos that are loan free, the amount of insurance will depend on the legal minimum and personal preference of the owner.

For instance if the minimum state requirement is 25/50/20 a car owner can choose this coverage or get something more comprehensive. He just cannot go any lower than what the state requires.

Auto Insurance Basics

Every Auto Insurance policy is a legal and binding contract between the vehicle owner and the insurance company. The insurance company agrees to pay for damages and other expenses related to a road accident or property damage caused by the vehicle. The vehicle owner promises to pay an agreed monthly premium to cover part of the claim. Furthermore, the vehicle owner will have to shoulder a “deductible” when filing an insurance claim.

Both parties will have to agree on the coverage. Ideally, the vehicle owner should get maximum coverage but this is rarely the case because it becomes too expensive to maintain. Thus, a vehicle owner should prioritize certain factors when customizing his insurance policy plan.

For instance, if the vehicle owner takes frequent road trips, he might want to increase coverage to include towing and road assistance. If you own an expensive automobile, you might want to increase the insurance on collision coverage because repairs on high end luxury cars are usually more expensive.

The Basic Types of Coverage are:

Bodily Injury Liability – This pays for injuries to the driver and any passengers of the other vehicle if you are responsible for the accident. This money will help you in case you are sued by the injured party/parties.

Medical Coverage – This covers you, as the car owner, your passengers and even the people who live with and use the insured car in case of an accident. It also includes insurance for the car owner if he is a victim of a vehicular accident and he is a pedestrian.

Property Damage – This is similar to Bodily Injury but applies to property like the other party’s car

PIP or Personal Injury Protection – On top of the medical coverage, PIP can be applied in no-fault cases. It can include funeral expenses, hospitalization, treatment, income loss, and other related expenses.

Uninsured or Underinsured – This covers Bodily Injuries and damages to you or your passengers if you are victims of a road accident and the other party has no (or not enough) insurance.