Don’t Scrimp on PIP

Personal Injury Protection (PIP) is one of the most important forms of coverage you can have on your personal auto insurance policy to cover medical expenses caused by an accident.  With PIP, more is always better, and purchasing more coverage is very easy and affordable. Allow me to illustrate:Alice, like most people, scrimped on PIP had only $2,500.00 in coverage.  Last May, she was involved in a significant, rear-end car accident caused by a negligent driver, and she sustained painful neck and shoulder injuries.  She was taken by EMS to the ER in Round Rock, and then she treated with a chiropractor for several months to recover.  Alice also missed nine days from work due to neck pain and appointments.  Her total bills for treatment were $12,500.00, and her lost wages were $1,500.00.  Her PIP sent her $2,500.00, which she applied toward the ambulance bills.  After the PIP was spent, she still owed $10,000.00, and she still had lost wages.Meanwhile, the negligent driver’s insurance company refused to make sufficient offers on Alice’s claims.Ultimately, after a long process with an attorney on her side, Alice received a $25,000.00 settlement on her case.  While she waited, Alice’s ER and radiology bills were turned over to collections and showed up on her credit.  A significant portion of Alice’s $25,000.00 settlement went toward paying the past-due ER, doctor and chiropractor bills.Paula’s story was different.  Paula had $50,000.00 in PIP benefits.  She was involved in an accident just like Alice’s and received the same injuries and treatment.  Paula received PIP benefits for all $12,500.00 of her medical bills and 80% of her lost wages.When the negligent driver’s insurance made low offers on Paula’s claim, it didn’t create a financial hardship for her.  Paula was able to take care of all her medical bills before her credit was harmed, and she had plenty of funds left over to cover her lost income and incidental expenses.Better still, when Paula and her attorney settled her case with the negligent driver for $25,000.00, none of her settlement had to go toward paying medical providers.  Paula received the settlement funds directly.Keeping low amounts of PIP coverage may save you $20 per month, but when an accident happens you could lose exponentially more.  Increasing you PIP benefits to the maximum amount offered by your insurance carrier is an easy and affordable way to protect yourself and your family from unnecessary financial harms after an accident.  For a few extra dollars per month, you can protect your credit, pay your medical bills promptly and receive greater sums for yourself and your family at the time of settlement.