PIP is a coverage designed to help you pay medical bills in the event of an accident, regardless of fault. Even better, PIP can be used even if you are not in your car; if you are cycling, jogging, or even waiting for the valet at your fancy restaurant. the greatest thing about PIP, in our opinion, is that it cannot be recovered if there is another coverage that pays medical bills.
I hear you out there scratching your heads - let me explain. If you are in an accident and have "medpay" coverage in the amount of $5000, that coverage would pay out for you immediately. However, if your health insurance pays in addition to that, or if the other insured's insurance pays for your medical bills, then the $5000 in medical payments coverage is taken off of the top - basically, you have to pay your benefits back. On the other hand, with PIP coverage, that money is also paid out immediately by your insurance, but it is not recoverable. If some other insurance company pays your medical bills, your PIP money stays in your pocket - they do not attempt to recover from anyone paying out. An easy way to look at it is that "medpay" coverage is a loan, while PIP is money that you get to keep.
The cost of PIP is generally a few dollars more (literally) for a policy term than the cost of Medical Payments coverage - but it's a better way to spend your insurance money in the long run, if you are looking for some sort of bodily injury coverage.
Call us today and talk to an agent; we are more than happy to help you understand what you are purchasing, and more importantly, why you are purchasing it. Here at The Phoenix we are ready to serve you, and even more ready to put some money back in your pocket. Why not take a few minutes and see just how much we can save you?
Love the skyline picture!
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