Tuesday, May 26, 2015

PIP in New Jersey: FAQ (Frequently Asked Questions)

What is PIP?
PIP stands for Personal Injury Protection. It covers your medical bills if you are injured in an automobile accident. PIP coverage must be included on every Auto insurance policy in New Jersey.

What is the amount of coverage under PIP?
The standard amount of PIP coverage is $250,000.

Are lower amounts available?
Lower amounts are available, but they are not recommended.

Is PIP “No Fault” and what does this mean?
Yes. This means that your own policy covers you for injuries sustained in an auto accident regardless of who is driving, whose car you are in, or who is at fault.

Will my health insurance policy cover injuries sustained in an auto accident if I select my health insurance as “primary”?
It depends on the type of health insurance plan you have. Therefore, it is important to find out if you have auto accident coverage under your health insurance, and how much coverage you have. If you want to select “health primary,” you must obtain written information on your health plan coverage for auto accidents.

Can I select Medicare or Medicaid as my primary health insurer for auto accidents?
No, you cannot select Medicare or Medicaid as your primary health insurer for auto accidents. Your auto insurance must be primary.

What if I select my health insurance as primary and they won’t pay?

If you have selected “health primary” and your health insurance won’t pay for treatment of injuries from an auto accident, you can file a claim under your auto policy. But you’ll have to pay back premiums to the insurance company, plus an additional penalty deductible of $750.

Where can I get more information about PIP or other insurance questions?
My website has a lot of additional information: www.farmersagent.com/drobinson1

And you can email or call my office with any questions: 973-232-5086 drobinson1@farmersagent.com

Sources: www.state.nj.us/dobi; www.personalinjurylawjournal.com

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