What is Personal Injury Protection Insurance?

When it comes to auto insurance, there are numerous policies and plans from which drivers can choose from. Buyers are inundated with a hurricane of insurance jargon, including comprehensive coverage, liability coverage, no-fault laws, and so on. For many people, one insurance term they should make sure to listen for is personal injury protection. Personal injury protection insurance is one kind of insurance policy that provides protection to those people in the car rather than just the car itself.

Personal injury protection is a form of insurance coverage that has one very specific purpose – in the event the driver and/or passengers are injured in an automobile accident, personal injury protection will pay for any resulting medical costs that have not been covered by the primary car insurance policy. This insurance policy may also provide coverage for lost wages if an individual is unable to go to work for a certain period of time due to injuries sustained during the automobile accident. Sometimes personal injury protection insurance is labeled as “no-fault” because no matter who is at fault for the automobile accident, the driver is covered.

While personal injury protection coverage varies between the different insurance companies, on the whole, it pays for all medical costs, any lost wages, and other costs that are associated with the automobile accident, including transportation both to and from a hospital. On average, personal injury protection coverage pays out 80 percent of all expenses, even if the driver is found to be at fault for the accident. It does not just provide protection to the driver, but also the passengers in the car at the time of the accident. It needs to be noted that personal injury protection insurance does not cover off-road vehicles, motorcycles, as well as farming equipment. While individuals can get a similar coverage, it is usually very pricey and better to just purchase health insurance.

When does personal injury protection insurance come in handy? For example, say that an individual is driving to their job early one morning. Unexpectedly, the driver collides with another vehicle. No fault has been placed yet but the individual is very banged up. And while the individual’s injuries are not listed as life threatening, it does put the person out of work for five weeks so they are able to recover. Rather than be worried about medical bills and loss of income for five weeks, personal injury protection insurance will help out with the medical expenses and income once the individual’s regular health insurance coverage maxes out and/or does not provide coverage for certain medical tests and/or lost wages.

Florida is one of 12 states that require personal injury protection coverage. In fact, the state of Florida has mandated a minimum of $10,000 worth of personal injury protection coverage per driver. Drivers in Florida and in other states where it is required often have to tend with higher monthly premiums because the driver is held responsible for damage caused in every accident rather than the ones they are at fault for.