By law, you are required to have insurance for your vehicle.

But as you look at insurance coverage—whether by talking to an agent or searching on the Internet—the terms of the policy seem like Greek to you. For example, what is PIP coverage?

What does PIP mean?

“PIP” is an acronym for Personal Injury Protection.

The Insurance Commissioner for the State of Washington states:

PIP is insurance coverage for medical and other expenses, such as wage loss and funeral expenses, which result from an auto accident, no matter who is at fault.

What does PIP cover?

Okay, that’s a pretty simple definition. But what does that mean to you in case you’re in a car accident?

For the State of Washington, the following are minimum benefits for PIP coverage:

• Up to $10,000 for reasonable and necessary medical expenses for each individual injured in an auto accident. This is available for up to three years from the date of the accident.
• Up to $200 per week for income replacement coverage. This is limited to one year, and starts after a person has been disabled for 14 days after an accident.
• Up to $2,000 for funeral expenses.
• Up to $5,000 for loss of services (payment to others for work you can’t do).

For the State of Oregon, Personal Injury Protection covers up to $15K of medical expenses, and only up to ONE year from the date of the accident. Income replacement for Oregon is a maximum of $1250/month.

Is PIP insurance required?

While Personal Injury Protection insurance is not mandatory coverage in the State of Washington, insurance companies are required to offer this coverage to you. If you do not want the coverage, you must reject it in writing. If you do not refuse PIP coverage, your insurance company must add it plus the cost to your auto premium.

Why do I need PIP if another driver is at fault?

Everyone thinks that, if another driver is at fault, then that person should pay for all expenses. While that is technically true, what if the other driver has no automobile insurance or liability coverage? And even if the at-fault driver does have insurance, there is no obligation to pay any expenses as you incur them. Getting paid from the other party for damages to you or your automobile happens only through settlement or a verdict (which can take weeks, months, or even years).

How much PIP coverage should I buy?

While the minimum benefits are available with all automobile insurance policies, we recommend that you purchase enhanced PIP coverage. You can increase the amounts of coverage with your automobile policy for up to $35,000 for medical expenses and a maximum of $700/week for wage loss. Be sure to discuss your needs with your insurance agent or company representative.

If you or anyone in your vehicle was injured in an automobile accident, call our office with any questions you might have about your insurance coverage.