What Car Accident Expenses Does PIP Cover?

Personal injury protection, or PIP, is a type of car insurance offered in New Jersey. PIP covers a variety of expenses after a car accident, including the following:

Medical Costs: PIP will cover the costs of all injury-related medical care, including doctor’s appointments, surgeries, prescription medication, physical therapy, ambulance transportation, diagnostic testing, emergency room bills and more.

Lost Wages: PIP also provides limited income-replacement benefits for those who cannot work due to their injuries. More specifically, PIP pays accident victims up to $1,000 per week (up to $5,200 per year). Of course, your benefits cannot exceed what you earned before the injury. However, you are also entitled to up to $12 per day to compensate you for essential services you cannot perform, such as laundry, cleaning, and other household chores.

Funeral Costs: If someone with valid PIP coverage dies as a result of a car accident, their next of kin can recover up to $1,000 in funeral coverage costs.

When it comes to PIP, there are a few options. New Jersey law requires all motorists to obtain at least the “basic” coverage plan. Basic PIP plans provide at least $15,000 in coverage for any injury, and up to $250,000 in coverage for certain injuries, including severe brain damage, spinal cord damage, or permanent disfigurement.

However, when you choose a basic PIP plan, you are limited to PIP coverage. In other words, the insurance company will not offer you bodily injury liability coverage and is not required to offer comprehensive coverage.

You also have a choice to use your health insurance to cover your accident-related medical expenses. Doing so will decrease your annual premiums and require you to pay any deductible through your health insurance plan. You should only select this option if you know that your healthcare insurance policy covers injuries related to car accidents and fully understand what your financial obligations are in such situations. Also, if your private health insurance carrier is a self-funded plan under ERISA, you will have to pay them back for all payments made related to your case.

New Jersey drivers have many choices when choosing a car insurance plan. However, the general rule is that you should choose the most coverage you can afford; otherwise, you may find yourself in a position where you lack sufficient coverage to compensate you for your accident-related expenses fully.

If you have been injured in a New Jersey car accident and have questions about the availability of insurance coverage, reach out to the experienced car accident lawyers at the Todd J. Leonard Law Firm for immediate assistance. We offer free consultations to accident victims and will never bill you for our services unless we can help you recover compensation for your injuries. You can reach us at 973-920-7900 or through our online form.