When purchasing auto insurance, it’s essential to understand the different components that make up your premium. One critical aspect is the medical portion, specifically covered under Personal Injury Protection (PIP). PIP is a key feature of auto insurance policies that provides coverage for medical expenses incurred due to injuries sustained in an auto accident. This coverage extends beyond just immediate medical bills, encompassing hospital stays, prescription medications, rehabilitation, and more.
The amount of coverage you have for these medical expenses depends on the level of PIP coverage you select when setting up your auto policy. Different levels of PIP coverage offer varying amounts of financial protection, which determines how much your auto insurance will pay for your medical costs following an accident. This can significantly impact how much you would need to pay out-of-pocket or rely on your health insurance to cover. It’s crucial to carefully consider your PIP coverage options to ensure you have sufficient protection tailored to your needs.
Selecting the right level of PIP coverage is a balance between premium cost and the extent of coverage. Higher levels of PIP coverage typically mean higher premiums but offer more comprehensive protection, covering a larger portion of your medical expenses. Conversely, opting for lower levels of PIP can reduce your premium but might leave you with higher out-of-pocket costs in the event of an accident. Understanding these dynamics can help you make an informed decision about your auto insurance policy, ensuring you are adequately covered without overpaying for unnecessary protection.
Our owner and founder, Pat Brennan, explains more. Check out the video below!
What Is the Medical Portion of Auto Insurance Premiums? – Entrust Insurance, St. Clair Shores
Video Transcription
“That’s PIP which is Personal Injury Protection. Now, the PIP coverage in your auto policy has, several layers, of coverage on there, one of those being medical. And so, it determines, based on the level that you select, how much coverage you select for your policy, if you’re injured in an auto accident. How much for medical, hospital, prescriptions, rehab, so on and so forth, how much of those costs are being paid by your auto insurance compared to what would be paid for through your health insurance.”
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