What Is Pip Deductible
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What Is Pip Deductible?
Personal Injury Protection (PIP) insurance is a type of coverage that pays for medical expenses and lost wages resulting from a car accident, regardless of who is at fault. PIP deductible is the amount of money you must pay out of pocket before your insurance company starts covering your medical bills and lost wages.
In some states, PIP deductible is mandatory, while in others it is optional. The deductible amount can vary depending on the state and the insurance policy you have. Typically, it ranges from $0 to $2,500.
PIP deductible works similarly to a regular deductible in other insurance policies. Once you have paid the deductible amount, your insurance company will start reimbursing your medical expenses and lost wages up to the policy limit. The policy limit is the maximum amount of coverage your insurance policy provides.
FAQs about PIP Deductible:
1. Is PIP deductible mandatory?
In some states, PIP deductible is mandatory, while in others it is optional. You should check your state’s insurance laws to determine if a deductible is required.
2. How does PIP deductible affect my premium?
Generally, a higher deductible can lower your premium because you are assuming more risk. However, the impact on your premium may vary depending on other factors such as your driving history and location.
3. Can I choose my PIP deductible amount?
The deductible amount is usually set by the insurance company and can vary depending on your policy. Some companies offer different deductible options for you to choose from.
4. What happens if I can’t afford to pay the deductible?
If you cannot afford to pay the deductible, you may be responsible for paying your medical bills and lost wages out of pocket until you reach the deductible amount.
5. Is PIP deductible separate from my regular deductible?
Yes, PIP deductible is separate from your regular deductible for other coverages such as collision or comprehensive. Each coverage has its own deductible.
6. Does PIP deductible apply to all PIP benefits?
PIP deductible typically applies to medical expenses and lost wages. However, some policies may have a separate deductible for other PIP benefits such as funeral expenses or childcare.
7. Does PIP deductible apply to passengers in my car?
PIP deductible usually applies to the named insured and their household members. However, coverage for passengers may vary depending on the policy and state laws.
8. Can I change my PIP deductible after purchasing a policy?
In most cases, you can change your deductible amount when renewing your policy. However, some insurance companies may have restrictions on changing the deductible mid-term.
9. Does PIP deductible apply if I am not at fault?
PIP deductible applies regardless of fault. Even if you are not at fault, you may still need to pay the deductible before your insurance covers your medical expenses and lost wages.
10. Are there any exceptions to PIP deductible?
Some states have exceptions to PIP deductible for certain types of injuries or medical services. You should check your state’s insurance laws to understand any exceptions that may apply.
11. How does PIP deductible affect my claim settlement?
PIP deductible is subtracted from the total amount of your medical expenses and lost wages before your insurance company calculates the claim settlement. You will be reimbursed for the remaining amount after the deductible is applied.
In conclusion, PIP deductible is the amount you must pay out of pocket before your insurance company starts covering your medical expenses and lost wages. It can vary depending on the state and your insurance policy. Understanding how PIP deductible works is crucial in determining your financial responsibility in the event of a car accident.
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