One optional type of coverage you can buy along with your auto insurance is personal injury protection, often referred to as PIP. That's why it helps to know what is covered with PIP insurance so that you can determine if it is right for you.
One of the biggest expenses you may have related to an auto accident is for medical expenses. However, PIP does not replace your existing health insurance plan. It works by supplementing your health insurance plan by paying for what wouldn't be covered. This includes copay and out-of-pocket expenses because you have not met your deductible.
In addition, you'll be able to recover your out-of-pocket costs related to prescription medications. It may not seem like much, but it can add up during the course of your recovery.
If you are not able to work because you are recovering from your injury, PIP is going to pay for the wages that you lost during that time. If you're a salary-based employee and do not think that you would receive any lost wages, it's important to understand how PIP works for lost wages. You can actually be reimbursed for lost personal days and sick days that you need to take, even if it does not subtract wages from your paycheck. Those are days that you've earned as part of your job, and you won't use them as long as you have PIP coverage.
Your auto accident may leave you with a lasting injury that takes quite a while to recover from. PIP is not only going to pay for those immediate medical bills but for your rehabilitation costs as well. This includes occupational or physical therapy that is necessary to get back to being fully healed. One thing to keep in mind is that each state has a limit as to how much they will pay for rehabilitation costs, so make sure you understand what your local limits are.
Durable Medical Goods
You may have some out-of-pocket expenses related to durable medical goods. This includes things like neck braces, wheelchairs, crutches, and things of that nature. All of these items will be covered with PIP coverage — just make sure that you hold on to the receipts so that you can prove what you paid for them. However, you won't be reimbursed through PIP coverage if your health insurance will pay for these items.