PIP Coverage – To Waive PIP Or Not To Waive PIP
PIP Coverage – To Waive or Not To Waive?
What is PIP coverage and what does it cover?
Insurance consumers should be aware of PIP coverage, which stands for Personal Injury Protection Insurance. This coverage is found on an auto insurance policy.
This type of insurance provides financial assistance when an individual is injured in an auto-related accident and needs medical care. The coverage can pay for necessary medical costs, lost wage associated with car accident. I
In addition to covering medical expenses and lost wages, Personal Injury Protection also covers funeral costs and essential services expenses.
These essential needs expenses would be items that you would not be paying for if it were not for the injury from the auto accident. These can include (but not limited to):
- costs to hire someone to clean your house
- transportation to and from doctors
- additional childcare expense
How much does PIP cost?
Insurance consumers who are looking to add PIP coverage to their car insurance policy may find the cost varies depending on several factors.
These factors can include where they live, how much coverage they want to purchase, and driving history.
Generally, Personal Injury Protection on the auto policy can cost anywhere from $50 up to several hundred extra dollars per year. Though this figure is can vary greatly depending on the particular auto insurance company.
Should you waive PIP coverage?
Insurance consumers should carefully consider if Personal Injury Protection (PIP) coverage is necessary for their situation.
In some cases, waiving PIP can save consumers money on their insurance premiums. However, this type of policy provides a financial backstop in the event of an accident.
PIP also offers coverage regardless of fault. And it covers not only while you are operating the vehicle, but also when you are entering or exiting the vehicle. So if you slip while exiting the vehicle, or slam your finger in the car door, your PIP coverage could kick in and pay for your associated expenses up to the coverage limits on the policy.
Insurance consumers should think carefully before waiving PIP coverage. It is a critical form of protection that could help during a difficult time.
What are the risks of waiving PIP?
Insurance consumers need to consider the potential risks of waiving PIP coverage when selecting an auto insurance plan.
In Maryland, PIP typically cannot be fully waived, so it is called a “limited PIP option”. When you waive or limit PIP in MD, you are waiving it for yourself and any other household member ages 16 or older.
Household members under the age of 16 and non household members still would receive the full PIP benefits under the policy. So when the limited PIP option is selexted, you will still have to pay a premium for the PIP coverage.
In Pennsylvania, you can waive the PIP insurance altogether for your policy. So that means that no one would be eligible to collevt PIP benefits under your policy.
When this coverage is waived or limited, the consumer is responsible for any uncovered expenses resulting from a car accident.
Insurance consumers must weigh the pros and cons carefully before making a decision about whether or not to waive PIP coverage and understand the risks involved.
We Recommend Not Waiving Personal Injury Protection Coverage
PIP is a valuable no fault coverage on an auto insurance policy. This means that it does not matter if you are at fault for the accident. If there is an injury involving any accident, PIP can be used to pay for covered expenses as a result.
In our opinion, the value of the coverage out weighs the cost savings of waiving or limiting the coverage. For that reason, we never recommend waiving or selecting the limited PIP option on an auto insurance policy.
Contact Us Today
If you have any question on your PIP insurance, or any other type of insurance, please reach out to us at 410-647-1111. One of our experienced agents will be happy to talk to you about your options.