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What Is PIP?

1 Aug 2017

When a person in New York is deciding on insurance coverage for their vehicle, they will need to know about personal injury protection (PIP) insurance. This is because New York is a “no-fault” vehicle insurance state. In this case, insurance companies will pay the damages and expenses associated with the vehicle of their policyholders. Payment is not determined by who is at fault for an accident. A New York driver may feel they’re being unfairly kept from collecting on their PIP insurance. Speaking with someone at an personal injury law firm could fix the situation.

PIP Coverage
It can provide coverage for medical expenses like medical and surgical treatment, ambulance, nursing services, hospital stays, x-rays, dental care, optical care as well as chiropractic treatment and more. It may also cover funeral expenses involving cremations and also burials. This coverage may help an accident victim who experiences a loss of income. It could also help passengers in the vehicle who are unable to work because of injuries. In certain circumstances, it could cover lost income of someone who is self-employed. It may help with the income loss of surviving dependents. Child care expenses could be covered if a person is unable to care for their child because of injuries sustained in an accident. It could also cover expenses associated with household services like house cleaning, lawn care and more.

Claim Limits
Basic no-fault coverage in New York pays approximately $50,000 per person. This includes the driver and all passengers in the vehicle. It will also cover any pedestrian injured by the vehicle of a policyholder. A driver with PIP coverage will be given 80 percent of their lost earnings from work. This is limited to $2,000 each month for a three year period beginning on the date of the accident. An insured driver could receive up to $25 a day for a twelve month period to cover expenses determined to be necessary and reasonable. This could include transportation to medical treatment, household expenses and more. A person may also receive a death benefit of up to $2,000. It will be paid to the estate of the deceased person.

Coverage Limit
It will be up to a driver in New York to determine the limits for their PIP coverage. Experts recommend a person base it on their own health insurance coverage. Should their health insurance policy provide good coverage; a driver may consider purchasing lower amounts of PIP coverage. If a driver’s health insurance does not provide good coverage; they may want to purchase higher limits of PIP coverage. This will ensure their medical needs are met should they be in an accident.

Applying for Benefits
To qualify for benefits, a person must file form NF-2 after their accident with their insurance carrier. This must be done with the insurance carrier for the vehicle a person was in at the time of the accident. Should a person be involved in an accident as a pedestrian, they need to file this form with the insurance company of the vehicle that struck them, as well as their own insurance carrier if they own a vehicle. In some cases, a person will have to request this form from their insurance carrier. Should a person not be able to identify the responsible insurance company, they should immediately send a notice to the New York State Motor Vehicle Accident Indemnification Corporation (MVAIC). This is a government agency in the state of New York that functions as an insurance company when no insurance company is involved.

Time Constraints
When a driver in New York wants to submit a claim for against their PIP coverage, they will have to do it within a specified amount of time. A person will have thirty days from the date of their accident to file the proper forms. An individual may be involved in an accident, and not sure they want to continue with a claim. It’s important they know after filing the paperwork, they’re still not obligated to begin the claims process. In many situations, a person’s health insurance policy may not cover an injury or damage resulting from a car accident. When a person files the forms, they’re simply protecting their rights in this situation.

A person could have their claims for benefits denied by their insurance company. An personal injury attorney will know how to handle this situation. They are experienced and knowledgeable with the insurance laws of New York. These are legal professionals who know how to protect the rights of an accident victim and get a fair settlement.

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