Personal injury protection (P.I.P.) is also known as not-at-fault insurance coverage. It is a special coverage offered by insurance companies in the U.K., covering medical costs associated with an auto accident. P.I.P. covers healthcare costs for you and injured passengers, even if they don’t have health insurance coverage.
Your health insurance will cover additional expenses if medical care costs exceed your P.I.P. insurance limits. Bear in mind that P.I.P. limits the amount per person if multiple people have been injured in the accident. In today’s article, we will tell you how P.I.P. works and whether you should get this coverage type. Read on!
How Does P.I.P. Insurance Work?
Personal Injury Protection or P.I.P is based on no-fault principles. If you have P.I.P insurance, the company will cover you for injuries and medical costs. P.I.P insurance does not rely on third-parties involved in the crash. The insurance company does not need to prove the third-party at-fault driver.
Likewise, you don’t need to prove your innocence or not-at-fault after the accident. Because P.I.P insurance does not require such requirements, some people say that it is a viable insurance option for drivers in the U.K. However, research shows that P.I.P value has a limit.
Sometimes, your healthcare costs may go beyond the limit of your P.I.P insurance policy. Although it is not mandatory for you to have this type of coverage, it can help you if your regular car insurance does not cover you.
Unlike other car insurance policies that usually predetermine the coverage costs, P.I.P insurance can cater for healthcare costs and medical bills, which are not covered by the standard insurance policy.
Do you Need P.I.P?
The no-fault aspect is an essential feature of P.I.P coverage. Your insurance company will pay for your medical expenses and lost income, even if you are an at-fault driver. You will report a claim to your auto insurance provider.
The insurance company pays benefit or medical bills that would have previously required the victim to demand compensation from the at-fault party. On the other hand, P.I.P will pay you even if you have caused the accident.
It is crucial to understand the difference between P.I.P claims and Tort liability claims. Tort refers to a negligent act or wrongdoing that one person commits against another. Your action is considered a tort if you cause injuries to another party by hitting his or her car.
When an individual causes harm, no matter how mild or severe the injury, the victim has the right to file a lawsuit against the tort to get compensation for the damages. When you have P.I.P insurance, you can avoid filing a lawsuit or make a liability claim. Thus, this saves your time and gives you peace of mind.
Final Words
No-fault insurance or P.I.P can save you from filing a lawsuit against the at-fault party. Not only does this save you save time, but it also helps you avoid paying additional costs to your lawyer. Because P.I.P insurance limits lawsuits and liability claims, insurance
premiums are usually lower than other coverages, making P.I.P a good option for motorists.
