What Is PIP?

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PIP, or personal injury protection, insurance can help cover your medical bills and lost wages after a car accident, regardless of who was at fault.

Some states require PIP coverage, while others do not. Keep reading below to learn all the details about PIP, including what it covers, when it may apply, and the pros and cons of this type of insurance.

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At-Fault Vs. No-Fault Insurance

Most states, including Georgia, follow an at-fault insurance system. In these states, the driver at fault for the accident is liable for any resulting damages or injuries, and injured victims have the right to sue the at-fault driver for their injuries.

However, some states follow a no-fault insurance system. Those states include:

Florida
Hawaii
Kansas
Kentucky
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania
Utah

In these states, drivers may not automatically have the right to sue the at-fault driver for their injuries. Instead, all drivers carry PIP insurance. An injured victim would file a claim with their own PIP insurance, and that insurance would cover their injuries regardless of who was at fault.

Victims in these states may only sue the at-fault driver for their damages if their injuries are severe or their losses exceed their own PIP policy limits.

What Does PIP Cover?

While Georgia is an at-fault state and does not require personal injury protection (PIP), some insurance companies may offer limited PIP-style benefits as optional coverage. Availability can vary, so it’s essential to review your specific policy or consult with your insurance agent to understand the protections you have.

Covered medical expenses include all reasonable and necessary treatment for your accident-related injuries, including:

Emergency treatment
Diagnostic images, such as X-rays, CT scans, or MRIs
Physical therapy
Follow-up doctor visits
Surgery

Additionally, many accident victims may miss time from work due to their injuries. PIP insurance provides benefits to cover your lost wages for the time you missed. However, some PIP coverage might not pay for 100% of your medical bills and lost wages. For instance, your policy may only cover 80% of your medical expenses or 60% of your lost wages.

What Is Not Covered by PIP?

There are a couple of notable items that PIP insurance does not cover. First, PIP does not cover property damage. If someone else caused your accident, they would be responsible for your property damages. In most cases, their liability insurance would cover the damage.

Additionally, PIP coverage does not pay for non-economic damages, such as pain and suffering. The intangible losses after a car accident can be significant, and these damages include:

Pain and suffering
Emotional distress
Depression
Anxiety
Loss of enjoyment of life
Loss of consortium

If your injuries are severe, you may be able to sue the at-fault driver for your losses. This opens the door to non-economic damages, which can significantly increase the value of your claim.

Who Is Covered By PIP?

PIP coverage obviously applies to the insured driver, but it may also extend to others as well. PIP may also cover passengers in the vehicle who are injured in the accident. Additionally, PIP insurance may cover other family members who live in the same household.

Finally, PIP coverage may also extend beyond car accidents. If you have PIP insurance, it may cover your medical bills and lost wages if you are injured in a car accident, pedestrian accident, or bicycle accident. Coverage details may vary from one PIP policy to the next, so you should always check your policy details or talk to your insurance agent about the specifics of your coverage.

Pros and Cons of PIP Insurance

One of the significant benefits of PIP insurance is how quickly you can get compensation. Since there is no need to prove fault, PIP claims are often paid quickly. This allows injured victims to receive their compensation more quickly, and it can help prevent medical bills and other expenses from becoming overdue.

PIP coverage also helps keep insurance premiums lower because it prevents many small claims from going to court. When fault must be proven, disputes often arise, and many of those disputes end up in litigation. Although PIP insurance has some benefits, it also has some drawbacks.

The biggest drawback of PIP coverage is that it might not compensate you for all your losses. As previously mentioned, PIP does not cover non-economic damages. It may not even cover all of your economic losses. If you encounter this situation, you may be left with significant losses and unable to recover compensation for those losses.

Contact Hammers Car Accident & Personal Injury Lawyers for a Free Consultation With an Atlanta Personal Injury Lawyer

If you have been hurt in an accident, you could be entitled to significant compensation for your injuries. The team at Hammers Car Accident & Personal Injury Lawyers can help you navigate all the insurance coverage that may be available after your accident. We have 50 years of combined experience helping injury victims, and we are ready to put our experience to work for you.