What Is the Difference Between PIP and Medical Payments?
If you have ever been in a car accident, you know how stressful getting medical treatment can be. Here at the Lam Law Firm, we hear the same questions from our clients when they come in for a consultation for personal injury services:
Is my regular medical insurance going to cover my costs? How am I going to pay any co-pays? What if I have no insurance? What about expenses that cannot be paid by my policy, such as prescriptions?
There is another option that many of our clients are not aware of when shopping for their car insurance policies. Personal Injury Protection (PIP) and MedPay are two types of coverage for your auto insurance.
Personal Injury Protection (PIP)
PIP may also be referred to as “no-fault insurance” in certain states. This means it can be used to cover certain costs for you and your passengers regardless of who is at fault for the auto accident. In many states, you are required to carry PIP on your automobile insurance policy in order to cover your own injuries and damages. However, in South Carolina, it is completely optional. As a result, many drivers in our area tend to either not know about the coverage or they opt out of adding it to their policy.
Personal injury protection, for the most part, has a per-person maximum rather than a per-accident maximum like other types of coverage. This depends on your state’s requirements (if applicable) and the company’s rules. PIP can be used to cover your or your passengers’ expenses resulting from an accident, such as:
- medical/dental bills
- lost wages
- medical supplies
- cleaning services (necessitated by injuries)
- funeral costs
PIP cannot be used for property damages, other drivers’ injuries, or injuries sustained in an accident that occurred during the commission of a crime.
Medical Payments (MedPay)
You may hear PIP referred to as MedPay; however, there are a few differences between the two. Whereas PIP can be used to cover expenses mentioned above, MedPay only covers medical expenses. PIP limits and costs are typically higher than those of MedPay. The costs for adding these types of coverage vary by state, but the advantage of having PIP or MedPay coverage is well worth the cost.
After an Auto Accident
Still confused about these types of coverage? If you are looking for more information on PIP, MedPay, or other types of additions to your vehicle insurance policy, you can contact your auto insurance company or shop around online.
If you have been in an automobile accident through no fault of your own and are looking for assistance settling your claim, please contact Lam Law Firm at (843) 695-7700 or via our online contact form to set up a free consultation.