Personal Injury Protection Insurance / No-Fault Insurance
What is Personal Injury Coverage?
No Fault Insurance Coverage
Personal injury protection coverage, sometimes called no-fault insurance coverage, pays benefits related to personal injuries resulting from an automobile accident.
This coverage applies without regard to who was at fault in the accident. It covers losses tied to injuries, and does not cover damage to a car, or to any other property. No-fault insurance coverage is provided on a per-person, per-occurrence basis.
Insurance Coverage availability varies by state
Determining Your Limits for Personal Injury Protection
In some states, personal injury protection is mandatory. In other states, personal injury protection is not available at all. If personal injury protection is available in your state, you should consider what your health insurance will cover and what it will not – and how the following expenses could be impacted should you or someone in your household be injured in a car accident.
Medical Expenses – Personal injury protection can pay reasonable expenses for necessary hospital, medical, surgical, optical, dental, chiropractic, rehabilitation, x-rays, prostheses, prescription drugs, ambulance and nursing costs.
Work Loss – Personal injury protection can pay for loss of income due to injury, including costs incurred by a self-employed person who hires substitute employees to perform necessary tasks and to maintain income.
Funeral Expenses – Personal injury protection can cover reasonable funeral and burial or cremation expenses.
Survivors’ Loss – Personal injury protection can pay for loss of income and replacement services to the surviving dependents.
Essential Services – Personal injury protection can pay for essential services, such as household maintenance, to replace those normally performed by the injured person.
Example: When No-Fault Insurance Comes in Handy
Let’s say you're driving to work one morning when you unexpectedly collide with another car. You’re pretty banged up and have to go to the hospital. Luckily your injuries aren’t life threatening, but the doctors estimate you’re going to be out of work for six weeks while you recover.
You’re worried about loss of income for six weeks but luckily, you have no-fault auto insurance to help. Regardless of who is at fault in this scenario (you or the other driver), your personal injury protection insurance can help pay for your lost income, as well as your medical expenses that your health insurer doesn’t cover.