How New Jersey PIP Insurance Works

If you were involved in a car accident, it is likely that you have heard the acronym PIP used. PIP (personal injury protection) is a type of “no-fault” coverage that provides compensation for both lost wages and medical costs. PIP compensation is paid regardless of who was responsible for causing a motor vehicle. 

Given its ability to provide compensation even if a party is responsible for an accident, PIP plays a valuable part in insurance policies. New Jersey is one of only 13 states that require PIP insurance. Instead, many other states prefer to make PIP coverage optional.

The basic concept of PIP is easy to understand. Details concerning PIP coverage, however, can be complex. Furthermore, insurance companies can be hesitant to pay PIP compensation. Consequently, to navigate issues involving PIP, it often becomes critical to obtain the assistance of an experienced attorney. In addition to the aid of a skilled lawyer, it can also help to understand some additional details about how PIP works.

Damage Covered by PIP

Following an accident, PIP car insurance covers apply to three types of damages:

  • Death benefits. If a person dies due to injuries caused by an accident, PIP coverage will provide compensation to the deceased person’s loved ones. This coverage includes costs for burials, cremations, and funeral expenses up to a maximum of $1,000. 
  • Lost income. PIP provides compensation for lost wages. The exact amount that is covered depends on the policy that a person holds. 
  • Medical costs. PIP coverage includes reimbursement for all medically necessary expenses for injuries caused by an accident. Care includes ambulance services, diagnostic tests, hospital stays, medication, physician visits, and therapy. 

PIP Limits

The minimum amount of PIP coverage in New Jersey is $15,000. Drivers can then purchase coverage up to $250,000. If a person has lower PIP limits and experiences a severe brain or spinal injury, their limits can sometimes automatically rise to $250,000. The average monthly cost for PIP coverage varies greatly between drivers.

PIP Coverage and Medical Compensation

Most cases involving PIP coverage resolve between the medical professional who provides treatment and the injured party’s insurance company. If an insurance carrier refuses to provide PIP compensation, a medical professional must then initiate a PIP claim on the accident victim’s behalf. 

PIP Claims and Arbitration

Many insurance disputes lead to arbitration. This is because insurance companies are often hesitant to pay out compensation. If a PIP case proceeds to arbitration, a neutral third party will hear arguments by each side of the PIP claim. The third-party will then make a decision about how to resolve the dispute.

Contact a New Jersey Accident Attorney

Pursuing compensation through PIP coverage can be challenging. Fortunately, an experienced personal injury lawyer can help. At Ferrara & Gable, we have helped a countless number of people successfully navigate the complex issues involved with insurance claims. We also understand just how traumatic insurance accidents can be. Contact our law office today to schedule a free initial consultation.