What is “PIP” Coverage if you are involved in an auto accident in Maryland?
Every client that visits with me in my office after they have been involved in a car accident asks me: What is PIP? “PIP” stands for Personal Injury Protection, and every automobile insurance policy issued in Maryland automatically includes PIP coverage. The next time your insurance company renews your insurance policy, look at your declaration sheet and you’ll see a line that includes PIP coverage. It is a relatively inexpensive portion of your insurance policy, usually between $20.00 and $50.00 a year. PIP is a no-fault coverage on your insurance policy, which means that you will not be penalize by your insurance company for making a claim. You can waive your PIP coverage, but you have to affirmatively waive the coverage at the time of purchase or renewal, I would advise against waiving your PIP, since it is inexpensive and can play a major role in your recovery after an injury.
PIP coverage is at minimum $2,500.00, but you can increase your coverage to $5,000.00 or $10,000.00. That is something you want to discuss with your insurance broker or agent.
So what does PIP coverage pay for when you’ve been involved in an auto accident? PIP is available to pay for medical bills and lost wages. That means PIP coverage can pay up to $2,500.00 of your medical bills or up to 85% of your lost wages after an accident. That can be invaluable for some insured drivers because a settlement in a car accident case can take up to six months to resolve. If you are out of work for a week or two, the PIP coverage for lost wages can supplement your income during your period off of work immediately.
Even though the at fault driver in the accident would be responsible for medical bills and lost wages in addition to pain and suffering, the PIP coverage will pay for medical bills on top of what the adverse party’s insurance company will pay for those loses. That means you can recover twice for those lost wages and medical bills.
The people involved in a car accident that can claim PIP coverage include: a person operating their own vehicle, a passenger in the vehicle, and a pedestrian that is struck by a vehicle that has PIP coverage.
If you have been involved in a car accident in Maryland and you would like to seek PIP coverage, contact our office to discuss your case and how we can make a claim for PIP coverage as well as any damages from the at fault party’s insurance company.