Personal Injury Protection (PIP) and Medical Payments (Med-Pay) are auto coverages that pay regardless of who is at fault in an accident. While these coverages have some things in common, they are different. Here are some of the key differences:
Personal Injury Protection (PIP)
- Companies must provide $2,500 per person in coverage, unless it is rejected in writing.
- PIP covers the policyholder, family members living in the household, any driver with permission to drive the covered vehicle, and passengers. Insurers will pay reasonable accident related medical and funeral expenses within 3 years of the accident.
- PIP also pays 80% of lost wages. If the injured person is unemployed, PIP pays for essential services, such as child and lawn care, that the person does for the family household.
Medical Payments (Med-Pay)
- Companies are not required to offer this coverage.
- Med-Pay also covers reasonable accident related medical and funeral expenses. However, who and what is covered may be very different. Some examples of the differences may be:
- only pays for the expenses within one year of the accident;
- no coverage for chiropractic care; and
- only reimburses your health insurance deductibles and co-pays.
- Unlike PIP, Med-Pay does not pay lost wages, or pay for essential services if the injured person is unemployed.