PIP or Personal Injury Protection coverage allows insured automobile drivers to receive funds from their insurance company in the event of an automobile accident, regardless of fault. This means that if you are involved in a car accident that you have caused, you can file a PIP claim; if you are in a car accident that was the fault of another driver, you can also file a PIP claim. Additionally, at the time of the accident, you need not even have been in a vehicle. You can still file a PIP claim even if you were a pedestrian injured by an automobile.

Many drivers in Maryland waive PIP coverage, and I get it – when you are shopping for car insurance, you want to keep costs down and therefore end up waiving all of the bells and whistles that drive up the monthly premium. Personal Injury Protection coverage is neither a bell nor a whistle and I encourage everyone to think before waiving this important coverage.

Personal Injury Protection Benefits

No one plans to be in an accident, but by their very nature, accidents are unplanned occurrences. By the act of purchasing insurance, you are planning ahead to protect yourself and your family in the event of an automobile accident and therefore you may as well have all of the protection available and necessary to maintain yourself and your family while you recover from your injuries. PIP coverage has the following advantages:

1. Coverage for you and family members in your household who are injured in ANY automobile accident;
2. Coverage for anyone injured while IN your automobile;
3. Coverage for pedestrians injured BY your automobile;
4. Coverage of all reasonable and necessary expenses incurred within three (3) years of the accident;
5. Replacement of 85% of lost wages if employed at the time of the accident; and
6. If unemployed, coverage for any reasonable and necessary expenses to provide for the care and maintenance of your family or household.

Effect of Waiving PIP

Waiving Personal Injury Protection coverage can have unintended consequences for more than just you, the driver. By waiving coverage, you waive it not only for yourself but you are also waiving it for members of your household over the age of 16 who are injured in an accident unless that individual has his/her own automobile policy and has not waived PIP coverage. Once coverage has been waived, no member of your household may file a PIP claim against your coverage or against the at-fault driver’s coverage. Additionally, waiving PIP coverage is like leaving money on the table – if you are in an accident, the amount of your pain and suffering damages is decreased by the number of medical bills incurred.

A Case of Simple Math

When injured in an automobile accident, you will undoubtedly incur medical expenses. For example, many victims will receive physical therapy at some point in their recovery. Either the doctor’s office will allow the victim to receive therapy with the expectation of payment in the future or the victim’s insurance will be billed. In either scenario, once the case is complete, the victim will either have to pay the doctor’s bill out of the settlement proceeds or reimburse their insurance company. Here is an example: If the case settles for $30,000 and the victim has incurred $10,000 in medical expenses, after payment of the medical expenses, the victim walks away with $20,000 (before any legal fees and expenses). IF the victim had PIP coverage, the victim would walk away with $10,000 more, for a total of $30,000 (before legal fees and expenses), because the PIP coverage would have paid for the medical expenses.

On average, Personal Injury Protection is $162 per year, or 44 cents per day, in the State of Maryland for the minimum coverage of $2,500. Check your policy. If you have waived Personal Injury Protection, call your insurance company and add it back to your policy immediately. Not only should all drivers have Personal Injury Protection, but they should also get more than the minimum and purchase as much protection as they can afford.