In years past, auto insurance coverage was an option, not a requirement. In today’s reality, it’s the complete opposite. In fact, driving without auto insurance coverage can wind up costing you thousands of dollars if you get into an accident. Another significant change of today’s world when compared to years past is the variety of choices available to consumers.
Depending on where you live, there are a number of options to choose from when obtaining auto insurance coverage; some mandatory, some elective. One of the most common is no fault insurance; also referred to as PIP insurance.
Personal Injury Protection
PIP insurance, which stands for Personal Injury Protection, is a type of insurance that is designed to allow you to have access of up to $10,000.00 to cover any costs associated with any personal injuries you may sustain if you are involved in an accident that involves an automobile. This coverage pays out regardless of who is at fault in the accident; hence, the other common name for this type of insurance coverage, ‘no-fault insurance’.
In addition to providing coverage for any personal injuries you may sustain, it will also pay out for a certain percentage of lost wages. There are limitations and circumstances that come into play in order for this coverage to pay out up to the full $10,000.00 limit which you should discuss with an insurance agent in the state where you are interested in obtaining PIP insurance.
Liability Auto Insurance
Consumers are known for balking at the cost of liability auto insurance and other types of auto insurance coverage, and many opt for the bare minimum as a way to keep their auto insurance costs low, but this reasoning won’t necessarily prove beneficial should you be involved in an accident, and here’s why.
Let’s say you are the at fault driver in an accident. The other driver’s policy is under no obligation to provide you with any type of financial coverage to help you pay for any injuries you may sustain as a result of the accident. PIP insurance will; even if you’re to blame for the accident.
Let’s say you are not the at-fault driver in the accident. Without PIP insurance, the other driver’s insurance company can drag their feet when it comes to paying out for your injuries. With no-fault insurance you’ll have immediate access to up to $10,000.00 to help you pay for medical bills, and or lost wages.
What if the other driver doesn’t have any insurance at all, and he or she is to blame? At least with PIP insurance coverage, you’ll have access to some monies to help you pay those bills.
At the end of the day there are many scenarios in which no fault insurance proves to be beneficial. Even if you have to sue the other driver in court in order to recoup your total losses, PIP insurance will give you some peace of mind that you’ll have access to some money while you wait for the other driver’s insurance company to pay out.
When trying to figure out what the right auto insurance investments are for you, don’t shy away from PIP insurance coverage simply because of the costs involved with having it. It may prove to be the best auto insurance investment you’ll ever make.