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 Posted: Sat Aug 16, 2008 6:13 am Post subject: PIP Vs Bodily Injury liability |
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| Hi people, What is the difference between personal injury protection and bodily injury protection .I did a bit of googling and found out that PIP pays for the medical expenses of the insured along with others who were in the same vehicle and also any other pedistrians who might be injured in the accident ..Bodily injury protection provides for injury to other people other than the insured ? Am I right ? If so PIP which provides a wholesome coverage is better than Bodily injury insurance and would be the better option to go ? If I am wrong in what context BI is better than PIP ? and where it will actually come to help ? |
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renditioner
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| Posted: Sat Aug 16, 2008 7:02 am Post subject: |
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renditioner, I don't think that you might even get the option to choose between the PIP and the bodily injury liability coverage, since BI is mandatory in all the states whereas PIP is optional. This implies that you are required to maintain minimum limit of bodily injury liability (at least) irrespective of carrying PIP.
The liability portion of the auto policy is designed to provide coverage to the third party if you cause them injury and damages in an accident. However, it offers protection to the policy holder when a lawsuit is file against him by compensating him for the legal expenses.
Hope it clarifies… |
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JeremyHolter
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| Posted: Sat Aug 16, 2008 7:16 am Post subject: |
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| Quote: | | If so PIP which provides a wholesome coverage is better than Bodily injury insurance and would be the better option to go ? |
No. Liability insurance is a requirement in all the states. You legally can't drive without the liability coverage.
Think of a situation, where you were injured by another driver and the other driver has no liability insurance, then whom will you ask for compensation for your damages?
The liability component of the policy pays for the damages caused by you to the other driver/pedestrian for which you're legally liable.
PIP on the other hand compensates the policy holder for the medical expenses incurred during his treatment for the injuries. In many state (except the no-fault states), the personal injury protection coverage is optional, and if you have sufficient health coverage you can even avoid opting for the PIP. |
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jeorge
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| Posted: Sat Aug 16, 2008 7:28 am Post subject: |
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Irrespective of the state being tort or no-fault, the liability insurance is required in all of them.
Well, it may sound like a repetition to you now, but that's the fact. Hence, pls don't commit the mistake of choosing the PIP coverage over liability. I agree, though, that the driver's concern may remain to ensure his own safety and the personal injury protection coverage offers the same benefit, but it should also remain his concern to be able to compensate the losses he has caused to others. And there the bodily injury liability coverage scores over the PIP.
However, the policy holder is free to purchase coverage he considered as enough for himself.
Another available coverage that covers the policy driver when the other driver involved in the wreck is without insurance. It's called the uninsured motorists coverage, which may offer better coverage than the PIP. |
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Juanita
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| Posted: Sat Aug 16, 2008 1:54 pm Post subject: |
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Ok.. Thank you guys .. I got the answer which I was searching for..So the liability insurance is actually bodily injury liability insurance and it is a must have feature for any of the insurance policies and the rest are optional ?
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renditioner
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| Posted: Sat Aug 16, 2008 7:04 pm Post subject: |
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PIP is also a required coverage in many states, optional in others, and not even available in others. It depends on your state.
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Lori
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| Posted: Mon Aug 18, 2008 6:04 am Post subject: |
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Right, PIP in auto insurance, is a requirement in the no-fault states, where the injured party can sue the party at-fault only under special circumstances of death, serious disfigurement or if the medical expenses exceed his PIP limits.
Currently there are nine states which follow the no-fault law, where you have to carry both the BI and PIP coverage. But, BI is a must in every state.
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JeremyHolter
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