PIP (Personal Injury Protection) is an additional coverage that you pay extra for and covers the upfront cost of your medical bills. Simply put, if you purchase this coverage, your insurance company agrees to pay your medical bills upfront but has the right to be reimbursed if there is an “at fault” 3rd party. If you have PIP, it is strongly encouraged to use it as it will not only pay the bills upfront but can also keep them out of collections. It can also provide benefits including wage loss and other personal expenses.
There are many reasons why a person would want to have PIP coverage on their car insurance. Many people don’t realize that after a car accident the at-fault person does not just automatically pay your medical bills. In fact, often those bills just sit as accounts receivable until the settlement is made. Unfortunately, some medical providers will not hold the bills until settlement, and unless you pay those expenses out of pocket, those bills often are sent to collections creating havoc on your credit and also collecting astronomical fees and interest rates. If a person has PIP coverage, the scenario mentioned above is not an issue.
Generally speaking, it is very easy to use your PIP coverage after you have been in a car accident. Most medical facilities are familiar with the process of billing PIP, and all you need to provide these facilities with is your claim number for the accident.