Pennsylvania is one of the 12 no-fault states and one of the 18 states where drivers can purchase PIP. Personal injury protection is likely referred to as "First Party Benefits" (FPB) when you apply for a quote in Pennsylvania, if you are unfamiliar with the term. The two terms mean and cover the same thing. One of the many decisions you must make when reviewing your Pennsylvania auto insurance policy is to understand what this coverage entails and the advantages of choosing the right PIP coverage for your needs.

The primary reasons states require PIP coverage are twofold. This type of insurance ensures that everyone who is injured in an accident will receive immediate medical care. Second, it makes auto insurance in that state "no-fault," which means that each individual's insurance company pays for their own injury-related medical expenses. PIP covers passenger claims, lost wages, and funeral expenses in the event of a fatal accident.

A state with no-fault auto insurance limits the legal pursuit of damages. PIP takes away collections from the tort system in order to limit litigation and reduce the court's caseload. If an accident causes property damage, the plaintiff may file a civil lawsuit to recover compensation. Below, we examine Pennsylvania's no-fault insurance law and discuss how drivers can file a claim, what they can expect, and whether they should purchase the coverage.

What is PIP Coverage?

PIP coverage can help pay for medical expenses, lost wages, essential services, and funeral expenses for you and your passengers in the event of an accident, regardless of who was at fault. Because Pennsylvania is a no-fault state, drivers are required to carry PIP coverage to help pay for injuries sustained in a covered auto accident. Your PIP coverage would pay first while the fault is being determined from the accident.

Not only are medical expenses for you and your passengers covered up to the PIP coverage limit listed on your auto insurance policy, but you could also receive reimbursement for lost wages if you or your passengers are unable to work due to the accident. PIP can also help pay for household services if an auto accident prevents you from completing housework. PIP does not provide any reimbursement for damage to a vehicle.

How Does PIP Work in Pennsylvania?

Drivers are required to carry at least $5,000 in medical payments, but they can carry much higher coverage if they choose. The minimum of $5,000 in medical payments excludes coverage for lost wages and essential services. Therefore, if you carry the bare minimum and are involved in an accident, you can only file a claim for up to $5,000 in medical payment coverage.

If Pennsylvania policyholders wish to carry higher limits, they have access to more robust PIP coverage options in Pennsylvania. In addition to increased medical payment coverage limits, you could add coverage for lost wages, essential services, and funeral expenses. If you or your passengers lose their ability to work because of a covered accident, comprehensive PIP coverage may reimburse lost wages. Essential services coverage, also known as substitute services, can help cover expenses such as house cleaning if an accident prevents you from performing these duties. In the event of an accident-related death, funeral expense coverage assists with the payment of certain funeral expenses.

In Pennsylvania, is PIP Coverage Required?

Pennsylvania mandates PIP insurance in some form. However, drivers are only required to carry $5,000 in medical benefits coverage, a version of PIP coverage. This pays up to $5,000 in medical expenses for you, your passengers, and anyone else covered by your policy, regardless of who was at fault for the accident.

Pennsylvania requires additional minimum coverage in addition to medical benefits for drivers. This consists of:

• $15,000 bodily injury liability per person
  
  
• $30,000 bodily injury liability per accident
  
  
• $5,000 property damage liability per accident

Whether it is the PIP coverage or the liability minimums, it is essential to remember that purchasing the bare minimum coverage may increase the risk of out-of-pocket expenses. For example, if you purchase $5,000 in medical benefits coverage, it may not be enough to pay for multiple injuries sustained by you and your passengers. Purchasing the bare minimum would not provide additional financial protection if you are unable to work as a result of your injuries.

Important aspects of PIP insurance in Pennsylvania

• In Pennsylvania, a minimum of $5,000 in PIP, or medical payment coverage, is required as part of an auto insurance policy.
  
  
• Adding additional PIP coverage provides reimbursement and coverage for medical expenses and lost wages for you and your passengers in the event of an accident.
  
  
• PIP coverage does not cover any vehicle damage.
  
  
• PIP can cover additional expenses, such as lost wages, than a medical payments-only coverage option.

What is the Cost of PIP in Pennsylvania?

Average auto insurance premiums in Pennsylvania are $430 annually for minimum coverage and $1,500 annually for full coverage. As with any other coverage you choose for your auto insurance policy, the cost of PIP depends on the amount you purchase. Although a minimum of $5,000 in medical expenses is required, you can increase this amount.

A number of factors determine auto insurance premiums, as well as the coverage options available. Among these factors are your age, ZIP code, vehicle, driving record, and others. If you are interested in adding higher PIP coverage amounts to your policy, you should consult with a licensed insurance agent to learn about the available options and costs.

A PA Car Accident Attorney at Brandon J. Broderick Can Help You Today

Some individuals will not pursue a personal injury claim due to the hassle and work involved. Prior to initiating the process of recovering your financial losses, Brandon J. Broderick, Attorney at Law, prioritizes restoring your health and well-being. In order to pursue maximum compensation for your injuries, we handle all communications and negotiations with insurance companies and construct your case. Do not assume liability for medical costs and bills that are not your fault.

We are committed to assisting Pennsylvania clients with their auto accident and personal injury cases at Brandon J. Broderick, Attorney at Law. We have the decades of experience and extensive resources required to secure a positive outcome for your case. Compassionately, our attorneys prioritize client care and your needs. Contact us for a free legal consultation. We look forward to helping you.