Personal Injury Protection (PIP), sometimes known as “no fault insurance,” is a type of coverage that is required in 12 states across the United States, including New York. This insurance covers medical expenditures, burial costs, lost wages, and some housekeeping services related to personal injuries caused by an auto accident. Personal Injury Protection (PIP) protects the driver and passengers in the vehicle at the time of the collision. PIP coverage can even be used if you were not driving. For example, if a policyholder is hit by a car while walking, PIP coverage will pay for the aforementioned damages.

What is Personal Injury Protection and How Does it Work?

Every vehicle owner is obliged to carry a certain amount of Personal Injury Protection, which varies by state. When a policyholder gets in an automobile accident, he or she must submit a personal injury claim with their own insurance company. Personal Injury Protection pays for medical bills and other damages regardless of who is at fault, which is why it is also known as no-fault insurance. The primary goal of the no-fault system is to keep people from filing personal injury lawsuits after every accident. People who have Personal Injury Protection can get monetary compensation for their injuries fast, allowing them to return to their typical activities in the shortest amount of time. It is possible to step out of the no-fault system but only if a threshold is met, this threshold also varies in every state. For example, in New York, to be able to step out of the no-fault system, the injuries sustained by the victims must be considered serious. According to New York State Laws, death, dismemberment, serious disfigurement, loss of a limb, loss of an organ or bodily system, loss of fetus, among other lesions are considered as serious injuries.  

Do I Need PIP in New York If I Have Health Insurance?

New York is one of the 12 states in the country where it is mandatory to carry Personal Injury Protection. Even if you have health insurance, you must carry the bare minimum of no-fault insurance. Furthermore, even if you have health insurance, no-fault insurance is a good investment because it covers some damages that most health insurance policies do not cover. For instance, lost wages and housekeeping services. Personal Injury Protection can cover up to $2,000 in lost income for a maximum of three years. Furthermore, if the injured person is unable to perform some housekeeping activities, such as cleaning, no-fault insurance may pay up to $25 per day for housekeeping services.

Personal Injury Protection Is Required in Which States?

There are 12 no-fault states in the country, where PIP is mandatory. 

• New York
• Florida
• Kansas
• Hawaii
• New Jersey
• Minnesota
• Utah
• North Dakota
• Massachusetts
• Pennsylvania
• Michigan
• Kentucky

However, in New Jersey, Kentucky, and the District of Columbia, you can choose whether to operate within or outside of the no-fault system.

Additionally, there are four at-fault states that require their divers to carry PIP:

• Arkansas
• Oregon
• Maryland
• Delaware

Finally, there are some at-fault states where it is optional to have Personal Injury Protection:

• Texas
• Virginia
• Washington
• South Dakota
• New Hampshire

How Much PIP Insurance Should I Have in New York State?

New York requires all drivers to carry at least $50,000 in Personal Injury Protection. Nevertheless, you can also purchase more protection if you would like to and this is actually a good idea. Having more coverage than the minimum required by the state could help you in case of a costly accident because you could receive compensation for your injuries faster. If you do not have health insurance, purchasing more coverage in Personal Injury Protection could be especially important. 

What PIP Does Not Cover?

Personal Injury Protection does not cover all damages related to an automobile accident. No-fault insurance does not cover property damage or the other driver’s medical bills caused by the collision. Additionally, drivers who were driving intoxicated or under the influence of any drug that could affect their capabilities, are not eligible for receiving compensation through no-fault insurance. If a driver suffers an accident while committing a crime or a felony will not be able to collect compensation through their Personal Injury Protection either. If the insurance company is able to demonstrate that the driver of the vehicle caused their injuries intentionally, the insurance provider can refuse to pay for their damages.

Difference Between Personal Injury Protection (PIP) and Liability Insurance

Personal Injury Protection is very different to Liability Insurance. Personal Injury Protection, like the name says, is used to pay for your personal damages after an accident, like medical bills or lost wages. Whereas, liability insurance is used to pay for someone else’s medical bills when the policyholder is responsible for the accident. Liability insurance is required by every state in the country. 

New York Personal Injury Compensation

After an accident most people do not really know what to do or what are the right steps to be able to collect compensation for their injuries. And even if some people know the right procedures, injuries could make the whole process of filing a personal injury claim a real challenge. Insurance companies will not make it any easier, in some cases some negotiation skills are required to be able to get a fair compensation. If you have recently been involved in a car accident, contacting a personal injury lawyer could be extremely useful. At Greenberg & Stein P.C. We are very committed to helping our clients get the compensation they deserve. We have an experienced team of attorneys that can help you in every step of the claim process. If you need help collecting the evidence or negotiating with the insurance company, our lawyers will take care of that. And if for some reason your case needs to be taken to the court, our lawyers have successfully represented countless accident victims and recovered millions of dollars for them. Do not hesitate in contacting us at 212-696-8795 to schedule a free consultation with one of our lawyers.