Pennsylvania falls among the 12 no-fault states and is also one of the 18 states where drivers have the option to buy PIP. In Pennsylvania, during the quote process, personal injury protection is commonly known as "First Party Benefits" (FPB), a term you might not recognize initially. Both phrases refer to and encompass the same coverage. In the complex landscape of auto insurance, Pennsylvania stands out with its unique approach to Personal Injury Protection (PIP) insurance, offering motorists both security and flexibility in the event of a car accident. This article will explain the intricacies of PIP insurance options in the Keystone State to help ensure that Pennsylvania drivers have the information they need to make informed decisions about their auto insurance coverage.

Personal Injury Protection, or PIP, insurance is a fundamental component of auto insurance policies in Pennsylvania. Designed to cover medical expenses and sometimes lost wages or other damages, PIP insurance ensures that individuals involved in a car accident receive immediate medical treatment without waiting for a fault determination. This coverage is essential for providing a safety net for drivers and passengers alike. With mandatory requirements and flexible coverage options, Pennsylvania's approach to PIP insurance provides both protection and choice for its motorists. By understanding the nuances of PIP coverage and carefully selecting the right level for your needs, you can ensure they are well-protected on the road.

In the evolving world of car insurance in Pennsylvania, staying informed about your PIP insurance options is key to securing not just compliance with state laws but also the peace of mind that comes with comprehensive coverage. Whether you're a new driver or looking to review your existing policy, considering your PIP coverage is a crucial step in safeguarding your financial and physical wellbeing while driving on Pennsylvania's roads.

What Is PIP Insurance Coverage?

In Pennsylvania, personal injury protection (PIP) is a mandatory form of medical coverage included in car insurance policies within no-fault states. To comply with state auto insurance laws, drivers in Pennsylvania are required to have a minimum of $5,000 in First Party Benefits (FPB) coverage, also widely recognized as PIP coverage, with the option for additional, more comprehensive coverage available.

PIP coverage in Pennsylvania can address medical expenses, compensate for lost earnings, and cover funeral costs in the event of an accident, regardless of who was at fault. As a no-fault state, this coverage extends to passengers and resident family members who might be injured in another's vehicle or as pedestrians.

Instead of the term "personal injury protection," policy documents in Pennsylvania will reference First Party Benefits, Optional First Party Benefits, and medical expense benefits, which collectively encompass what is generally referred to as PIP coverage.

How Does PIP Insurance Coverage Work in Pennsylvania?

Pennsylvania mandates that insurance companies offer up to at least $100,000 in medical expense benefits. However, policyholders have the option to select the $5,000 minimum coverage by filling out a coverage selection form. Choosing the minimum means you're limited to claiming up to $5,000 for medical expenses under your policy in the event of an accident, excluding coverage for lost wages.

Insurance providers may offer medical expense coverage limits exceeding $100,000. Policy holders can enhance their coverage by adding one or a combination of the following Optional First Party Benefits with varying limits:

• Income Loss Benefit: Assists with covering lost wages if you're unable to work due to an accident, typically compensating for 80 percent of your gross income within your policy's limits.
  
  
• Funeral Expense Benefit: Offers payment towards the costs of reasonable and necessary expenses for funeral or cremation services.
  
  
• Accidental Death Benefit: In the unfortunate event of a death resulting from accident-related injuries within 24 months, this benefit provides a payout to the designated beneficiary.
  
  
• Extraordinary Medical Benefits Coverage: This option extends your coverage significantly, offering benefits above the standard maximum of $100,000, typically up to a $1 million lifetime limit.
  

Is PIP Coverage Required in Pennsylvania?

In Pennsylvania, there's a mandate for drivers to carry at least $5,000 in medical benefits coverage, which contributes to medical expenses for the policyholder, passengers, or any other individuals covered under the policy, regardless of who is at fault for the car accident, up to the limit. This requirement positions Pennsylvania as a state with PIP insurance.

Beyond medical benefits, Pennsylvania also stipulates minimum coverage requirements for drivers that include:

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

Opting for just the minimum coverage can often lead to a greater chance of facing out-of-pocket costs. For example, the $5,000 medical benefits might not suffice to cover all medical expenses for multiple injuries. Likewise, the minimum coverage offers no extra financial security if injuries prevent you from working.

Drivers seeking affordable car insurance in Pennsylvania might consider choosing limited tort for significant premium savings. However, consulting with a licensed insurance agent is advisable to fully understand the implications.

How Much Does PIP Insurance Cost in Pennsylvania?

The average annual cost for car insurance in Pennsylvania for 2024 stands at $525 for minimum coverage and escalates to $2,800 for comprehensive coverage. The price of PIP coverage within your auto insurance policy will vary based on the amount of coverage you opt for. The state mandates a minimum of $5,000 for medical payments, but this can be increased for additional coverage.

Several factors influence auto insurance premiums, including the driver's age, ZIP code, type of vehicle, driving record, and other personal details. For those considering higher amounts of PIP coverage, consulting with a licensed insurance agent can provide clarity on available options and associated costs.

Frequently Asked Questions About PIP Insurance in Pennsylvania

Are PIP payments and medical payments the same?

While they share similarities, they're not identical. Both provide coverage for medical costs for you and your passengers after an accident, regardless of fault. However, PIP typically offers broader protection, potentially including coverage for funeral expenses, lost earnings, and a death benefit. Medical payments coverage, implied by its name, is limited to medical expenses incurred from injuries in the accident. Additionally, MedPay often features lower maximum claim limits compared to PIP.

What do the terms limited and full tort coverage mean in Pennsylvania?

"Tort" refers to a wrongful act that results in harm or damage to an individual or their property. The majority of states operate under tort law, where the party at fault is typically responsible for covering both economic and non-economic damages incurred by the other driver and their passengers. Conversely, in no-fault states, drivers are required to have PIP coverage to manage initial economic damages, yet their ability to pursue legal action for pain and suffering or economic losses is restricted unless the damages exceed a specific threshold, which varies by state. The "choice no-fault" states offer drivers the option between limited and full tort coverage in their auto insurance policies. In Pennsylvania, auto insurance policies default to full-tort, preserving the policyholder's right to legal action. Those preferring to waive this right must explicitly choose limited tort through a coverage selection form.

How and when should a PIP insurance claim be filed?

The process of filing a PIP claim can vary based on your location at the time of filing. If you're transported directly from the scene of the accident to a hospital or doctor's office, healthcare providers will inquire about your involvement in a car accident. At this juncture, they typically gather your car insurance and any other pertinent health insurance details to initiate the claims process for you. Given that PIP is a first-party benefit, your car insurance is responsible for making the initial payments for your medical bills, subject to your coverage limits and the regulations of your state. Injuries might not manifest immediately, and it's possible that claims for vehicle damage have already been submitted to your insurance. It's advisable to reach out to your insurance claims representative to confirm what your policy covers before visiting a healthcare provider; your representative can also update your claim after it has been filed.

A Car Accident Attorney From Brandon J. Broderick in Pennsylvania Can Help You Today

Many people hesitate to file a personal injury claim, deterred by the perceived effort and complexity involved. At Brandon J. Broderick, Attorney at Law, our initial focus is on your health and recovery before we begin the process of recouping your financial losses. We handle all communications and negotiations with insurance companies and build your case to seek the fullest compensation for your injuries, ensuring you're not left to cover medical expenses unjustly.

The attorneys at Brandon J. Broderick are dedicated to supporting our Pennsylvania clients through their auto accident and personal injury claims. Leveraging decades of experience and extensive resources, we're in a position to achieve favorable outcomes for you with a firm commitment to attentive and compassionate client service.

For a free case evaluation, contact us today. We're here to assist you.