In the process of shopping for auto insurance? If so, then you're probably pretty familiar with common types of coverage, such as liability, comprehensive, and collision coverage. What about no-fault coverage, though? This type of coverage, also sometimes referred to as personal injury protection (PIP), can give you added protection and peace of mind. If you've never bought this type of auto insurance before, there are a few things you should know about no-fault coverage.
Your State Might Require It
No-fault auto insurance is required in at least a dozen states. Being caught without no-fault insurance in a state that requires it could result in penalties and fines, so it's important to stay up-to-date on your state's laws and requirements as it pertains to car insurance. Even if your state doesn't require no-fault insurance, this coverage is optional in some states.
It Covers You and Your Passengers
The purpose of no-fault insurance is to pay for medical bills and/or funeral expenses for you and any passengers in your vehicle following an accident. This coverage can give you added protection and peace of mind regardless of whether you already have health insurance coverage for these expenses or not. If your health insurance benefits are maxed out, your no-fault PIP coverage can fill the gap. And for those who are uninsured, PIP insurance can cover medical bills and related expenses following an accident no matter who was at fault.
It Can Expedite Your Medical Payments
In no-fault states, PIP claims are relatively quick and simple because there is no litigation involved. By cutting out lawsuits that often tie up auto accident injury claims, the state saves money and policyholders don't have to wait months (or even years) to receive their benefit payouts.
It Doesn't Cover Property Damage
It's important to understand what no-fault insurance doesn't cover, including property damage. This means that if you're in an accident and your car is damaged, your PIP coverage won't pay for repairs to your vehicle. This is where having collision insurance in addition to your PIP coverage can give you added protection.
Whether your state requires no-fault insurance or simply offers it, this is a good type of coverage to have if you want to enjoy a little extra confidence behind the wheel. Be sure to shop around with auto insurance providers to find the best PIP coverage for your needs.
To learn more, contact an auto insurance provider.
After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.