What is Personal Injury Insurance?

When you’ve been involved in an accident, it is likely that one of the first things that you will be concerned about is how to afford any medical costs that you might incur. Certainly, in most cases, you may receive a settlement from the responsible party’s insurance company, or you may even obtain a settlement ordered by the court after filing a personal injury suit. However, many people tend to forget that there is such a thing as personal injury insurance.

Personal injury insurance, otherwise known as personal injury protection (PIP), is the part of your own insurance plan that covers medical expenses when you’ve been injured in an accident that was not your fault. Of course, the kinds of medical expenses this kind of plan covers and limits per each person involved in the accident may differ greatly depending upon your own policy choices and your insurance provider.

Typically, a majority of insurance companies will pick and choose which types of medical expenses to cover and each one will have a different definition of what they consider to be medically necessary and reasonable. When you review your coverage with your insurance company, you will need to make sure that you know for sure what is covered with your personal injury coverage, and if you’re looking for a new provider, make sure that you discuss this with them these details thoroughly before locking yourself into any policy.

While many insurance companies may have differing coverage plans, there are certain standard items that will be covered through most personal injury insurance plans. These will include:

  • Medical Expenses,
  • Hospital Fees,
  • Income Assistance,
  • Childcare Expenses,
  • Lost Wages, and
  • Funeral Costs

When trying to determine exactly how much personal injury insurance you should purchase, there are several things to consider. First, if you happen to live in a state that requires this kind of insurance, you will want to make sure that you carry at the least the minimum state requirements. Currently, Oregon is not a state that requires personal injury protection. States that do require it include Utah, Pennsylvania, North Dakota, New Jersey, New York, Michigan, Massachusetts, Minnesota, Kentucky, Hawaii, Kansas and Florida.

Second, it will be important for you to consistently review your current health insurance and car insurance policies. If between the two you have fairly comprehensive coverage for any potential injuries, then you may not need to consider shelling out extra money for personal injury coverage. However, if you find that your current coverage is coming up short, then it may be a good idea for you to supplement your coverage.

Third, when it comes to determining how much insurance you should purchase, there are two important factors for you to consider. The first regards the kinds of passengers you have in your vehicle. If you regularly have non-immediate family members in your vehicle, you will want higher coverage. Also, if you are a younger individual with limited coverage, a personal injury insurance plan should be at the top of your list.