PIP vs. Health Insurance: Which One Should You Choose for Car Accident Injuries?
Dropping personal injury protection (PIP) from car insurance can be tempting, especially when your health insurance covers accident-related expenses. However, it’s important to carefully consider the implications before making this decision.
PIP Insurance Coverage
PIP insurance provides coverage for medical expenses, lost wages, and other expenses related to injuries sustained in a car accident, regardless of who is at fault. It covers:
– Medical bills exceeding your health insurance limits
– Lost wages if you cannot work due to injuries
– Household expenses you are unable to perform due to injuries
– Funeral expenses in the event of death
Health Insurance Coverage
While health insurance can cover some of the medical expenses related to a car accident, it may not provide the same level of coverage as PIP insurance. For example, health insurance may not cover:
– Lost wages
– Household expenses
– Non-medical expenses like pain and suffering
Factors to Consider
When deciding whether to drop PIP insurance, consider the following factors:
– Health insurance coverage: Carefully review your health insurance policy to understand the limits and exclusions.
– Medical expenses: Estimate the potential medical expenses you may incur in the event of an accident. Consider the cost of doctor visits, hospital stays, rehabilitation, and prescription drugs.
– Wages lost: Determine the amount of wages you could lose if you are unable to work due to injuries.
– Other expenses: Identify any other potential expenses related to an accident, such as household expenses or pain and suffering.
Recommended Course of Action
If you have high medical expenses, lost wages, or other expenses that may not be covered by your health insurance, it is generally advisable to maintain PIP insurance. Dropping PIP can save you money in the short term, but it may leave you exposed to significant financial risk in the event of a serious accident.
It is recommended to consult with a licensed insurance agent to assess your individual situation and determine the best course of action for your circumstances.
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