Auto-insurance requirements vary among states, and Massachusetts has one of the more complicated insurance systems in the nation. One requirement of Massachusetts insurance law is personal injury protection (PIP), which must be included in every motor-vehicle liability or insurance policy.
Personal Injury Protection Coverage
In Massachusetts, every auto-insurance policy must provide PIP benefits. But, drivers may choose to reduce or eliminate the PIP coverage provided by their insurance companies by purchasing a deductible. In addition to reducing PIP benefits, buying a deductible also lowers drivers\’ monthly premiums for their auto insurance.
How PIP Works
If a driver with PIP coverage is injured in an auto accident, his or her insurance company will reimburse the driver for medical and related expenses up to a certain amount. PIP funds are provided regardless of whether the driver was at fault in the accident.
With PIP insurance, a driver\’s insurance company will pay up to $2,000 in medical expenses related to an auto accident. If the driver does not have health insurance or the health-insurance company denies coverage, PIP coverage will pay up $8,000. The expenses reimbursed with PIP funds must be incurred within two years of the accident.
PIP Benefits
PIP insurance is valuable for drivers because it reimburses expenses that otherwise may not be covered by health insurance, including cosmetic and dental services, co-payments and deductibles. PIP coverage also provides 75 percent of the driver\’s lost wages or lost earning power if he or she is unemployed. Additionally, PIP funds pay for necessary services that the driver would have performed if uninjured without pay, for example, cleaning his or her home.
Although drivers may elect to reduce or eliminate their PIP coverage, it offers many benefits that other insurance systems may not provide. If you have questions about PIP insurance or have been injured in an auto accident, contact an experienced insurance and personal injury lawyer in your area.