PIP insurance pays for an insured’s medical and other injury-related costs, regardless of which driver was at fault.
PIP coverage varies between states, but can include:
Medical expenses: Ambulance/paramedic, doctors and surgeons, hospitalization, nursing care, medication, drugs and medical supplies, psychiatric care, imaging, laboratory tests, rehabilitation, prostheses, dental care, optical treatment and chiropractic services. Not all states require 100% reimbursement; there may be a copayment required.
Funeral expenses: Ceremonies, burial expenses and cremation.
Lost wages: Some or all of wages lost because of injury. PIP may also cover the cost of temporary employees for self-employed insureds.
Child care and household expenses: PIP can pay for service providers when injuries make it impossible to care for children or maintain the home.
Survivors’ Loss: PIP can cover the breadwinner’s income for surviving dependents.
When you’re injured in an accident, you file a claim with your own insurer for PIP benefits – there’s no need to deal with the other driver’s insurer. Notice that PIP does not compensate you for pain and suffering.
In no-fault states, you can sue the other driver for these and other losses, but only when injuries are deemed severe or when medical expenses meet pre-defined thresholds – you can’t claim pain and suffering for minor injuries.