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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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| Posted: Wed Jun 23, 2010 7:16 pm Post subject: |
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In looking for your answer to PIP and BU Information PIP is for personal injury protection it is Florida law that all must carry 10,000.00 in coverage on their policy. Bi is for the adverse's coverage that is what you may get if you go after someone after a car accident. if there is no BI and you have UM coverage you can make a claim against your UM. I hope this helps you. I am a personal injury paralegal.
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| Posted: Thu Jun 24, 2010 2:47 am Post subject: |
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First off, you can't even BUY an auto insurance policy without both bodily injury and property damage liability. Now, don't go off on something like comprehensive coverage only for a stored car or something like that...that's not the point of the thread.
OP- liability is ALWAYS for the "other guy's" protection. It's what pays for the injuries and damage to property caused by the insured in an at-fault accident and by it's very definition implies negligence. There's no liability without negligence, and negligence by definition requires some sort of damage to have occurred. Negligence must have financial consequences. So- you injure the other guy and wreck his car in an accident- your BI and PD liability takes care of that guy, up to your policy limits. The coverage also includes your defense costs incurred in defending the case. As many others have pointed out- these coverages are mandatory in many states.
One correction I'd like to make concerns several postings that state that liability insurance is mandatory in every state. No it isn't. There are several states that allow certain entities to self-insure, and as such, these states are commonly referred to as "financial responsibility" as opposed to mandatory insurance states. Typically, you must own at least 25 vehicles, post a cash bond with the DMV in varying amounts, and be issued a "certificate of self-compliance" in order to qualify. It's also generally reserved for large(r) companies that have resources sufficient to cover potential liability.
Even in these states, it's rare that entities self-insure... the liability risk is just too great. Can you imagine if some commercial driver picks off a kid on a bike? The liability would far outweigh any savings the company achieved by self-insuring.
As to PIP coverage- it's a package of coverages and not just for injuries alone. You get medical coverage for the insured and passengers for injuries sustained "in, on or around" the insured vehicle; you get wage-loss protection (which varies in amount by state), there are "loss of services" benefits which protects homemakers in the event they are unable to take on the day-to-day tasks of running the house (daycare, etc.) and finally, there are funeral benefits if you are killed in an accident, again the amount varies by state. Every state that allows the sale of PIP has specific statutory language that applies to the coverage. The minimum benefits are defined by law and each insurer must obviously comply with the laws and rules in any state they operate within.
In some states, as previously stated, PIP is optional, in others it's mandatory, in others it's not even available.
In closing, one more comment.
To the OP- this statement in your first post:
| Quote: | | 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 |
Please understand that the protection for pedestrians is for YOU and YOUR insured persons. If you are injured as a pedestrian, the PIP coverage pays for your injuries up to your policy limits under PIP. If you hit a pedestrian, your bodily injury coverage would pay for the ped's injuries.
I'll stop now.
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InsTeacher
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| Posted: Thu Jun 24, 2010 9:29 pm Post subject: |
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| Quote: | | First off, you can't even BUY an auto insurance policy without both bodily injury |
Sorry Teach, I looked this up once, and if I'm not mistaken (hard to believe I know)..but in florida, BI coverage is NOT manditory...
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Lori
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| Posted: Thu Jun 24, 2010 9:36 pm Post subject: |
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| Quote: | I am registering a vehicle for the first time in Florida. Is automobile insurance mandatory?
Yes. If you own a vehicle with at least four wheels and are registering it, you must have Florida insurance.
What type of insurance is required to purchase and maintain a Florida license plate and registration?
Florida's minimum coverage is $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) as long as you have a valid Florida license plate. |
http://www.flhsmv.gov/ddl/frfaqgen.html
What Coverage Is Required In Florida
| Quote: | In Florida, to purchase a tag, you must carry:
A minimum of $10,000 of personal injury protection (PIP)
A minimum of $10,000 of property damage liability
However, Florida’s Financial Responsibility law requires drivers to be financially responsible for bodily injuries to limits of $10,000 per person with a maximum of $20,000 per accident. If a driver or owner of a vehicle does not have sufficient cash reserves to meet the financial responsibility requirement, it is a very good idea to purchase Bodily Injury Liability. |
It's really (IMO) a screwed up system in Florida, you don't have to carry BI to license a car, but you must be financially responsible IF you are at fault for an accident...  who thought this up?
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Fri Jun 25, 2010 12:28 am Post subject: |
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| Quote: | | It's really (IMO) a screwed up system in Florida, you don't have to carry BI to license a car, but you must be financially responsible IF you are at fault for an accident... who thought this up? |
I agree 100%... but I can also say that you won't find many people, agents included, that even know BI is not mandatory. You probably also won't find many (any) carriers what will write a policy without BI.
I also worked as a temp at a company that did not write PIP (which _is_ mandatory in FL). But what happened was the agent had to write it with another company. |
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tcope
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| Posted: Fri Jun 25, 2010 2:04 am Post subject: |
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Lori...WOW! Wasn't aware...there was legislation before the Florida legislature a couple of months ago that was to do away with this ridiculous set of rules. Evidently it didn't pass, or Florida's DMV is screwed up and is behind the times and hasn't updated their site...
All I can say is....you gotta be kidding. A strange version of financial responsibility, huh?
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InsTeacher
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| Posted: Fri Jun 25, 2010 3:40 am Post subject: |
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| Quote: | | All I can say is....you gotta be kidding. A strange version of financial responsibility, huh? |
I'd say no more odd then the 2 or 3 states that don't require any insurance or MI's PD no-fault. |
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tcope
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| Posted: Fri Jun 25, 2010 11:05 am Post subject: |
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| Quote: | | All I can say is....you gotta be kidding. A strange version of financial responsibility, huh? |
I KNOW! First time I heard this, I thought, well that person is mistaken..then checked it out and could NOT believe ANY state didn't require BI coverage right along with PD to license a vehicle...but Flordia, didn't think so...whoever came up with this was smokin' something (IMO)...maybe they think since their PIP is manditiory that will handle the bulk of any injurys, crazy man, just plain crazy. | Quote: | | I'd say no more odd then the 2 or 3 states that don't require any insurance or MI's PD no-fault. |
Ok Todd, save me the trouble,  what is different about MI's no-fault? Any states that don't require 'insurance' (like mine) still have financial responsibility laws though right? or are you saying there is a state or two that require 'nothing'?
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Lori
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