How Your PIP Coverage Could Impact Your Car Accident Settlement
PIP coverage, also referred to as no-fault insurance, is a type of car insurance that is mandatory in most states. Its purpose is to cover any lost wages, medical expenses, and other damages that a person may incur as a result of the accident. Unlike most of the other forms of compensation, A PIP claim can cater for some of your medical bills and lost earnings, regardless of whether the accident was your fault or not.
Most states emphasize that drivers acquire PIP coverage as a way to eliminate the number of car accident insurance claims, especially after minor accidents. The laws regarding no-fault claims are different in every state. Some limit the total benefits that you can secure from the coverage, while in others, there is no limit.
How does the PIP coverage work?
A PIP claim is one that you make against your insurer after you are involved in a car accident. The compensation is meant to cover medical bills and some of the earnings up to the no-fault limit in your state or the total amount of your claim. Some states use the two-part medical bill limit in determining the total amount that you can receive from your PIP coverage. Here the PIP insurer only has to pay a small portion of the medical bill while their health insurer caters to the rest.
If your medical bills exceed the no-fault limit provided by your state, you are responsible for catering for them, whether or not you have health insurance coverage. However, if you are on state-run medical insurance coverage or Medicaid, the entities can pay for the remaining part of the medical bills.
Most states don’t allow the injured individuals to claim for damages against the negligent driver under PIP coverage unless the injury is deemed sufficiently severe i=or when their medical bills exceed a specific limit.
PIP benefits contribute to the total compensation for your car accident settlement
Your PIP coverage and the total benefits that you receive after compensation affects the total amount that you receive in your car accident settlement. When evaluating your claim, insurance adjusters use the total worth of your PIP coverage to determine the set-off valuation of your claim. The total amount that you can receive is, therefore, determined after deducting the value of your PIP coverage.
This theory makes sense because you will probably have received the total compensation form your PIP insurer by the time your settlement is completed. However, the set-off limit still applies even if you have not exhausted your PIP benefits.
How to make a PIP claim
As earlier mentioned, a PIP benefit can cater to your medical bills and other expenses before the person at fault when the accident occurred is determined. Your car accident lawyer can make a claim with the insurer for your present and future damages, as soon as possible. The attorney is required to present your medical records to the insurer to prove your injuries and back up your claim. Any recommendations from your physicians for future medical care and expenses related to the accident are also necessary for helping the insurer to make a proper estimate. The insurer may also require that you attend a full medical examination with their preferred physician.
On receiving this information from your car accident lawyer puts a value to your claim and attempts to settle it without having to take the matter to court. However, if you fail to come to an agreement, the lawyer can file a lawsuit on your behalf. Generally, the success of your PIP claim depends on your cooperation with the insurer. Failure to comply may lead to termination of the benefits.