Why You Should Not Waive PIP Insurance

PIP, or Personal Injury Protection, Insurance is Maryland’s automobile no-fault liability insurance. This means that the PIP insurance applies regardless of who is at fault for a car accident. While this sounds like a great benefit to have, car insurance companies will often encourage their customers to waive PIP insurance. Simons & Goldner has seen the benefits of PIP, and despite what insurance companies may recommend, we believe that generally, you should never waive your PIP insurance. The minimal savings on insurance do not make up for the more significant savings PIP can provide in the event of a collision. So, what can PIP insurance offer you that makes it a necessary part of your insurance plan? 

PIP Insurance Makes Medical Treatment Accessible

The purpose of PIP insurance is to encourage motorists to seek medical treatment after a collision. Often, injured motorists may avoid seeking treatment because of fear of a large bill, and PIP makes it easier to receive immediate treatment without draining your funds. PIP Insurance can cover $2,500 to $10,000 in costs, depending on what your insurance plan offers for coverage. Even if you have the minimum plan at $2,500, that money can usually cover an ambulance ride to the hospital immediately after your collision. 

Personal Injury Protection Insurance Doesn’t Require Deductibles

Car insurance companies may convince motorists to waive PIP insurance because they say that health insurance will cover these medical costs, so PIP is unnecessary. While that may be partially true, many health insurance companies will still require you to pay a deductible for every doctor or specialist visit, or they won’t cover specialists at all. If you are not at fault for your collision, you will especially not be happy about paying these costs out of your medical plan. 

Additionally, many medical providers will not wait until your case settles to accept payment. If you do get compensation for medical bills from the at-fault driver, their insurance company will not pay those costs until after you have finished treatment. PIP insurance, however, will help you pay medical expenses as they are incurred. 

PIP Insurance Gets You Your Money Back

In Maryland, the collateral source rule enables you to recover the full amount of your medical bills, regardless of whether other sources like PIP paid those bills. What this means for you is that at-fault insurance companies cannot deduct PIP payments in the evaluation of your case. Therefore, if PIP pays medical bills, then the at-fault driver’s insurance company must pay you those costs again. In the case of a personal injury claim, PIP coverage will provide you with a higher net settlement check because PIP, as part of your auto insurance, has covered most, if not all, of your medical costs. 

There is no way to add PIP coverage after a collision, but you can change your insurance plan now. The minimum coverage is $2,500, but with the rising costs of medical care, you may want to increase your coverage to at least $5,000 if possible. If you’re concerned about insurance costs, you can ask your provider to break down the individual costs for each benefit, including Personal Injury Protection insurance. You will likely find that the price is minimal for the convenient benefits PIP would provide you if you become injured in an auto collision. 

Let Simons & Goldner, P.A. Represent You

Simons & Goldner, P.A., located in Lutherville, MD, consists of two partners, Stevan G. Simons and Richard H. Goldner practicing primarily in personal injury, medical malpractice, Worker’s Compensation, and criminal law. The partners come with decades of experience assisting clients injured by the negligence of others or injured on the job. We serve clients in the Baltimore, Towson, Essex and Dundalk area and work closely with our clients to ensure that your case moves quickly and efficiently and that you get all the benefits to which you are entitled. 

Initial consultations are available by phone or in-person and are free of charge. Contact us now to schedule a consultation, or call us today at 410-296-3110. Follow us on Facebook, Twitter, Pinterest, and LinkedIn for advice and updates.