If you’re a New Yorker and have auto insurance in the state, you may have noticed a line on your auto policy’s statements page for “Personal Injury Protection” coverage ( PIP). Personal injury protection in New York is a mandatory part of your policy. So what is PIP and how does New York PIP work?
What is PIP insurance?
Your auto insurance policy in New York is made up of several parts. Basically, it comes with third party liability coverage, which covers damage to the other car and medical and other costs if you hit someone and you’re at fault. Your auto policy in New York City will also require statutory bodily injury coverage for uninsured motorists to help cover your injuries and injuries to your passengers if someone hits your vehicle and has no insurance.
In addition to liability and uninsured motorist coverage requirements, some states, such as New York, require PIP coverage. PIP typically covers medical costs, lost wages, and essential services for you and your passengers, regardless of who is responsible for the accident.
How does the New York PIP work?
If you have an auto insurance policy in New York and are injured in a car accident, PIP coverage will pay for your medical expenses up to the limit of your policy, regardless of the fault. New York is a flawless state; therefore, your PIP coverage pays first. However, âno-faultâ insurance does not mean that fault is never determined from a car accident. Although your PIP coverage pays first, if the other party caused the accident, their liability coverage should cover your medical bills once the fault is confirmed.
How Does New York PIP Insurance Work?
- It helps pay for medical expenses and lost wages incurred in an accident.
- It helps pay for essential services if you cannot do your household chores due to an injury from a car accident.
How is New York PIP insurance explained? Here’s an example: let’s say you put on a red light and drag a car into the intersection while waiting to turn left. Both drivers were slightly injured. Your own PIP insurance coverage will cover your injuries up to the limits of your policy. Other drivers’ PIP would cover their injuries until it was confirmed that you were responsible for the accident. Then your liability coverage would likely pay for the other driver’s medical bills.
Keep in mind that the minimum amount of PIP coverage is $ 50,000 in New York City, but you can add additional PIP coverage and optional Basic Economic Loss (OBEL) coverage. An additional PIP extends your PIP coverage by an additional $ 50,000, and OBEL offers an additional $ 25,000 to your base coverage amount of $ 50,000 to help you with cases such as loss of earnings.
Is PIP mandatory in New York?
PIP insurance in New York is mandatory, meaning you are required by law to purchase it as part of your auto insurance policy. Almost all states in the United States require motorists to have a certain minimum amount of auto insurance to legally drive, including liability coverage. In New York, minimum coverage requirements are
- $ 25,000 for bodily injury liability per person in an accident
- $ 50,000 for accidental bodily injury liability
- Civil liability for property damage of $ 10,000 per accident.
- $ 50,000 Injury Protection (PIP)
- $ 25,000 in bodily injury caused by an uninsured motorist per person
- $ 50,000 in bodily injury to motorist not insured by law by accident
When it comes to legal coverage for uninsured motorists, that means it only provides coverage if the accident were to happen in New York City. If you are crossing state borders, legal coverage will not apply. Additional coverage for uninsured motorists is another coverage option available on a New York auto insurance policy and provides coverage for uninsured and underinsured motorists outside of the state.
How much does PIP cost in New York?
When you apply for auto insurance, your insurer gives you an insurance quote that estimates the cost of the premium. These quotes include information about your vehicle, such as its age, make and model, as well as information about you, including your age, credit rating, and marital status.
Part of this premium calculation will be for PIP coverage, but the cost will vary based on these factors and more. You should be able to find out exactly how much you are paying for the PIP by looking at your policy statements page, which includes details about your policy.
Key points to note about PIP insurance in New York
- PIP is a type of insurance that pays for your medical expenses and lost wages in the event of an accident, regardless of who is at fault.
- New York PIP coverage is a mandatory part of your auto insurance.
- The minimum PIP covers the insured up to $ 50,000 for injuries sustained in a single accident.
- You can purchase more than the minimum PIP coverage of $ 50,000 if you wish.
- In addition to medical bills and lost wages, PIP coverage in New York could cover housekeeping costs and transportation to doctor’s visits.
- There are situations where you cannot use PIP, including if you are driving while intoxicated, operating an ATV, or are injured while committing a crime.
Frequently Asked Questions
How and when to file a PIP complaint?
According to the New York State Department of Financial Services, you can file a PIP claim up to 30 days after an accident if injuries are involved – yours or those of the passengers in your vehicle. You would file this claim regardless of the fault of the accident, as the PIP extends coverage regardless of the fault. PIP insurance in New York is designed to be paid quickly, without the need for lengthy legal proceedings. In fact, your ability to sue the other driver is limited in no-fault states such as New York.
Are PIP and medical payments the same?
These types of coverage are similar in that both can cover medical costs for you and your passengers. But there are differences. MedPay pays only for medical purposes – health insurance deductibles, hospital visits, surgery, and other qualified medical expenses. The PIP will cover the expenses, but also the rehabilitation, the loss of salary if you are unemployed following the accident and household help while you are recovering from your injuries.