Personal Injury Protection Insurance (PIP) is a form of insurance that offers payment for those involved in vehicle accidents where personal injury results. This type of insurance is more obscure and is typically not a part of an umbrella insurance policy plan. In most policies, there is a “no fault” aspect to the plan meaning that the coverage can kick in regardless of who was at fault in the accident. The reason for the creation of such coverage is for those who may have been at fault in an accident or for those who can get immediate coverage without having to wait for the lengthy litigation process. The coverage is relatively inexpensive but those seeking it must be sure to ask their insurer of its availability. States are different so it is important to seek detail about what is available in your particular state. Those states with no fault laws have the PIP insurance as a mandatory part of coverage. Other states have this as optional coverage.
As mentioned earlier, the coverage can apply regardless of the fault of the accident. This means that even if the insured is at fault, they can still file a claim against their insurance company for these payments. This insurance typically includes personal injury protection, coverage for medical payments and economic losses. These payments are not assignable and are not subject to a setoff, meaning that you can still obtain damages from other at-fault parties without having a reduction in those damages as a result of having the coverage. You can continue to bring a full suit for damages against another party. Some plans will also allow any other occupants in the car to be covered.
Illinois has an interesting plan. If you want to collect on the bodily injury part of PIP coverage a claimant must still go through the traditional means of a lawsuit to obtain damages. Medical payments, however, can be collected without having to file a lawsuit.
There are a variety of payments that can be made, including medical bills, lost income, funeral expenses, and death benefits. Depending on the plan, other injury-related expenses can be covered, like mental and physical therapy. Unfortunately, such plans do not cover vehicle accidents related to work, or non-economic damages like pain and suffering and emotional distress.
This article is for general informational purposes only and is not to be construed as legal advice. Do not rely on the above information as all cases are different and different laws apply to different cases. Consult an attorney in your area for further guidance.