I have a question about PIP coverage.

I lived in NY which had a PIP minimum coverage of $50K bodily Injury which came with $100K per accident. I moved to Delaware which has $15K and $30K minimums. I did not realize this till now and am going to reduce my coverage. I feel comfortable doing this since we do have personal health insurance coverage and also have an Umbrella Policy. My reasoning is with health insurance our personal needs would be met and the Umbrella policy would cover others if our PIP coverage is maxed.

Is my reasoning sound? I am not an insurance guru so want to make sure I don't make an uninformed move.

Thanks in Advance,

JIm

 

I'm not certain, but I'd check with your agent before decreasing coverage....There can be an issue expecting your health insurance to cover auto related injuries that are generally covered by PIP. Also, though you know who your passengers are, it's "possible" they may not have suitable coverage for injuries.

Make a phone call or two.

 

Jim, For what it's worth. Through USAA, I have the additional PIP coverage of $85,000/$270,000, which costs me about $10 per year for 2 cars, over the minimum coverage that you have mentioned. To me, it's well worth the slight cost above the minimum.
Like Lainey says, it's worth a call to your insurance agent.

 

Thanks Lainey and Gene,

I spoke to a rep at Liberty Mutual and while she said it is a personal choice on the coverage level, she did not push for a higher coverage level. She confirmed that PIP is primarily for the driver but also covers passengers in the car (my understanding is it would also cover a pedestrian or bicyclist if they did not have auto insurance with PIP. If there are medical related expenses resulting from an accident then PIP is used first. If the policies PIP limits are exceeded then the individuals health insurance would be the next source. She did say that there are some medical insurance plans that do not cover expenses resulting from auto incidents (I have not heard this before). I am on Medicare not and it treats auto accidents like any other accident so no issues for me. However, if there was a passenger then they might have an issue. I would assume that if they did not have medical coverage or it did not cover auto accidents they would sue me and my umbrella policy would kick in.

I still find it confusing and may take out additional coverage for now (an additional $80 per year for $100/$300 with a $250 deductible). We want to go over all of our insurance in the next few months so will revisit it then.

Also as an FYI, Hagerty has my S coverage and it does not even offer me an option above the Delaware minimum.

Thanks,

Jim

 

I'd have to look at our policy, not sure if we have more than minimum coverage on PIP. If our agent recommended it we would. We too have the umbrella policy, which requires we have additional/higher coverage in several categories.

My sister is an attorney, and she does handle auto accidents. She strongly suggests people stay away from the Geico and Progressive policies. Sometimes their attractive rates come with a reduction in PIP and other coverages that some people (especially younger people on a budget) don't think is important, until they are dealing with injuries and PIP coverage is lacking.

 

Our Umbrella requires minimum coverage for Liability (bodily and property) not PIP. PIP is relatively cheap compared to Bodily Injury and property Liability.

 

^
Yes, likely the same here....Bodily Injury and Property liability are the more expensive categories.

Right now I'm too lazy to get out of my chair and satisfy my curiosity as to what our coverages are!

 

PIP (Personal Injury Protection – covers YOU): First # is are bodily injury total per person; Second # is per accident limit; the third is for property damage. Since July 2020, Michigan must offer several options to choose from and with separate pricing for each: Unlimited (best of any USA state by far), $500k, $250k (tops in next highest state), $50k and or we can waive PIP.

I carry unlimited on Donna's car. My truck and MG are with Hagerty, so there I have none - - I didn't realize that till you mentioned it and I see their policy excludes it. I guess I better hope the other driver is at fault and has insurance.

UPDATE: I carry Unlimited on all three vehicles.

I am required to carry 500/500/500 for my $1 million dollar umbrella policy.

In discussions with my agent we determined that while Donna & I both have Medicare A&B where injuries from an auto accident would likely be covered, he said Medicare really falls short if long term rehab is needed.

 

I can’t stand that f’ing lizard on Geico commercials. I’d like to step on him.

 

PIP also covers your passengers and others you may hit that are not in a vehicle and don’t have PIP.

”Personal injury protection, also known as "no-fault insurance," pays the medical bills and rehabilitative costs for you and your passengers after you're injured in a car accident. PIP also extends to instances when you're a passenger in someone else's car, or if you're hit by a car while a pedestrian or cyclist.”


My $1m umbrella requires minimum coverage on Liability not on PIP. It is $250/$500/$50. No req. on PIP, otherwise by default I could not use Hagerty with the low PIP.

I don’t know if they offer $500k.