Why You Shouldn’t Skip on PIP

According to a report released by the National Highway Traffic Administration, car crashes and crash-related fatalities have increased substantially across the country over the past two years.

As a result, it is perhaps more important now than ever before to have the right amount of Personal Injury Protection (PIP) car insurance, also known as no-fault insurance.

What is Personal Injury Protection (PIP)?

PIP is a component of auto insurance that covers medical expenses for you and your passengers after a car accident, no matter who is at fault.

How Does PIP Work?

Let’s say you were driving with two passengers, and got distracted, causing you to rear-end another driver. If you incurred $25,000 in medical expenses, but you have only $10,000 in PIP coverage, the additional $15,000 would come out of your pocket.

Apart from utilizing your PIP as a driver or passenger in a vehicle that has experienced a crash, you can also utilize your PIP as a pedestrian who has been hit to cover the medical expenses incurred from your injuries.

Why Have More Than the Minimum

In states with no-fault auto insurance laws, such as New York, PIP is a mandatory coverage. While the amount of PIP needed varies from person to person, one thing is certain: Purchasing the minimal amount of coverage required by law is never your best course of action.

PIP will only pay out the policy limit, and if you carry a low limit, it is typically not enough to cover your medical expenses. Carrying a low limit will be an even bigger disadvantage if you had passengers in your vehicle at the time of the accident who also sustained injuries.

What Does PIP Cover?

There are a variety of different ways that PIP can help you financially navigate the aftermath of an accident, such as:

  • Medical expenses for you and your passengers
  • Lost wages due to the injuries sustained
  • Funeral expenses, including burial or cremation
  • Replacing income lost by dependents if someone passes away in a car accident
  • Essential services like childcare, house cleaning, and more


What Is Not Covered by PIP Insurance?

While PIP covers a variety of financial burdens that often result from serious car accidents, it will not cover the following.

  • Property damage
  • The other drivers’ injuries in a collision
  • Injuries from an accident while committing a crime (e.g., fleeing the police)
  • Injuries in an accident while you received payment for driving (e.g., Uber)

Instead, you will need to rely on your Bodily Injury Liability insurance and Property Damage Liability insurance to address these situations.

If you have any questions about the ins and outs of PIP, don’t hesitate to contact our team at J. Hoffman Insurance: 845-239-4787. Or by email at vicki@jhoffmaninsurance.com.