Author Topic: Personal Injury Protection in Car Insurance?  (Read 3003 times)

CryingInThePool

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Personal Injury Protection in Car Insurance?
« on: September 19, 2014, 10:15:50 AM »
Hi all-

I thought I'd already optimized all the line items on my auto insurance but in reviewing my new policy summary that just came the mail I apparently missed one.

Personal Injury Protection $70  a year for 10k no fault medical policy for myself and any passenger.  It's not required by state law but I have to sign a statement in order to decline it.   Which made me think I should get the opinion of the fine forum folk first.

Since I already have medical insurance and really with the ACA shouldn't we all - does this have any value or should I decline it?

Thanks for your thoughts - CitP




Scandium

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Re: Personal Injury Protection in Car Insurance?
« Reply #1 on: September 19, 2014, 10:45:44 AM »
I never understood the point of this. Yeah, I have health insurance, and presumably so does my passengers (and I have disability and life insurance through work) so why would I pay for a measly few thousand extra for medical treatment? I asked the geico agent they agreed with me it wasn't much point either! I canceled long ago.

I'd love for someone to tell me why this would ever make sense.

seattlecyclone

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Re: Personal Injury Protection in Car Insurance?
« Reply #2 on: September 19, 2014, 11:56:40 AM »
I have declined this coverage for the same reasons.

AH013

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Re: Personal Injury Protection in Car Insurance?
« Reply #3 on: September 19, 2014, 02:31:02 PM »
Insurance agencies sell PIP for the same reason rental car agencies sell LDW, even though they insist you pay by credit card and even though every credit card has LDW baked into its cardholder benefits.  It's a cash cow and never used.

StarryC

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Re: Personal Injury Protection in Car Insurance?
« Reply #4 on: September 19, 2014, 03:45:39 PM »
It is definitely a throwback coverage to when many people did not have health insurance.  It was also pushed on many states as mandatory so that hospitals/ ambulances could get paid for responding to an auto accident, even if the people were otherwise unable to pay.   It is further supported politically by chiropractors and other providers who offer "free" care up front to those injured in an auto accident.   It is also a half-measure toward "no-fault" auto insurance. 

If you can decline it, AND you have good insurance, I think it's a good to decline.  However, if you have a high deductible plan or a HSA, it might be worth it to keep.  An auto accident is one of the most likely "unplanned" no warning financial hardships.  It only takes a second for you to have no car, no transportation, and an injury.  It can take weeks-months- over a year, to get compensated from the at fault driver.  AND, if the other driver flees or has no insurance, you may bare all of your own costs. 

So, if you have a $5,000 deductible health plan, do you have enough in savings that you could pay that deductible  AND replace your car AND deal with 1-2 months out of work before being reimbursed?  If not, that $70 might be worth paying until you do have that kind of savings.

Lyngi

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Re: Personal Injury Protection in Car Insurance?
« Reply #5 on: September 19, 2014, 10:48:45 PM »
Is this the same thing as uninsured/underinsured coverage?   I took the advice of a coworker to max out un/underinsured coverage (state max 100,000/300,000/100,000) and after a couple of months, my premiums actually went down. 

StangStache

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Re: Personal Injury Protection in Car Insurance?
« Reply #6 on: September 24, 2014, 09:48:57 PM »
Is this the same thing as uninsured/underinsured coverage?   I took the advice of a coworker to max out un/underinsured coverage (state max 100,000/300,000/100,000) and after a couple of months, my premiums actually went down.

PIP is different that uninsured/underinsured.  I only know this because PIP is listed in a separate line in my policy.  I'm not sure what the details of the differences are.

Suzaloo

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Re: Personal Injury Protection in Car Insurance?
« Reply #7 on: September 24, 2014, 09:55:46 PM »
Not 100% sure on how it will work in the US. but from what I've read so far it sounds very much like what we call "Accident Benefits" in Alberta. Here it is a mandatory coverage if you have liability on the policy.  Here, in addition to providing coverage for the medical expenses due to a claim, it also includes some disability while you're off work recuperating from the accident, funeral expenses if someone dies as a result of an accident, and some coverage for the life of the person who died as a result of a car accident depending on their age/position in the family *eg: breadwinner gets more*.  You may want to question what exactly is covered, it may be more than you think.