In no-fault insurance states, PIP coverage is put into place to help provide immediate compensation for common damages a policyholder may face. This commonly includes:
Medical expenses. PIP coverage will cover all vital healthcare costs for a policyholder, such as hospitalization, surgical procedures, prescribed medications, and rehabilitation.
Wage loss. Upon assessing evidence of income loss experienced by the policyholder, personal injury protection insurance will offer compensation for up to 80% of the income they were unable to earn. If the injuries sustained in the accident impact your capacity to work, PIP can even provide reimbursement for lost income and potential future wage losses.
Funeral expenses. In the event of a tragic and fatal accident, PIP can offer support in covering the expenses associated with the burial. This is in addition to addressing the medical bills and other costs incurred prior to the individual’s passing.
How Does PIP Work in No-Fault Insurance States?
If you have the required PIP insurance in your no-fault state, all that’s required is that you file a claim with your individual insurance provider. Policyholders do not have to wait for the legal courts to determine who the at-fault driver was in order to receive accident compensation from their insurer.
PIP Insurance Benefits
- There’s no need to worry about the other driver’s insurance amount or complete lack of insurance
- Can exceed the policy limits of other forms of insurance
- Simplifies and speeds up the overall compensation and repayment processes
It is important to note that different states have different PIP insurance requirements and limits in place. A good amount of variation can be found even within different no-fault insurance states.
What Are California’s PIP Insurance Requirements?
The minimum liability insurance requirements in California are as follows (California Insurance Code §11580.1b):
- $15,000 for injury/death to one person
- $30,000 for injury/death to more than one person
- $5,000 for damage to property
Also, California’s pure comparative negligence standard allows you to recover damages even if you were partly to blame for the accident. The court would just reduce your financial recovery in proportion to your degree that you were determined to be at fault for.
Because California operates as a comparative negligence state, PIP insurance is not directly required or available the same way as in no-fault states. California’s no-fault insurance alternative is known as Medical Payments Coverage. This covers the cost of medical expenses if you or your passengers are injured and can help pay for immediate medical care, regardless of who was at fault.