The Hidden Dangers of Agreeing to a Personal Injury Protection (PIP) Deductible
There are four types of mandatory auto insurance policies for Massachusetts drivers. One of them is Personal Injury Protection, or PIP. It’s sometimes referred to as “no-fault insurance.”
When you sign up for your insurance, you’ll be asked if you want to take an optional PIP deductible. In this blog, we’ll explain what you need to know about PIP and why the firm of Lipsey & Clifford strongly recommends against taking the optional deductible
Personal Injury Protection (PIP)
According to the law, PIP “covers medical expenses, up to 75% of lost wages, and replacement services up to a limit of $8,000. Massachusetts is a no-fault state, which means no matter who causes the accident, PIP will pay these expenses for you or anyone you let drive your car, anyone living in your household, passengers in your vehicle, and pedestrians.”
How PIP Works
Without PIP, you’d have to wait for the fault to be determined and possibly sue the other driver to get your medical bills covered. With PIP, you get fast, automatic coverage for injuries so you’re not stuck paying out-of-pocket costs (such as medical bills)while waiting for a settlement.
The PIP Deductible Option
When you purchase auto insurance, you’ll be offered the option for a PIP deductible. This is the amount you agree to pay out of your own pocket before your insurance kicks in. For example, if you pick a $2,000 PIP deductible and you have medical bills from an accident totaling $5,000, you would pay the first $2,000, and your PIP coverage would pay the remaining $3,000 (up to the policy limit).
FAQ
Q: Should I take the PIP deductible option?
A: We don’t recommend taking the PIP deductible option. While it might lower your monthly insurance premium costs, it also means you’ll pay more out of pocket if you’re hurt in an accident. In our professional opinion, the optional deductible isn’t worth it.
Being in a car accident doesn’t mean you have to accept the losses. You can seek compensation for vehicle damage and physical or emotional injuries that affect your life. At Lipsey & Clifford, our personal injury attorneys are here to support you and fight for the settlement you deserve.
Call us today at 1-800-466-3130 for a free consultation about your auto accident and to learn more about how we can help and protect you.
