A sometimes cheap auto insurance insurance policy is Personal Injury Protection, which also is called “PIP” insurance. The policy protects the driver, passengers and others against the costs of possibly being injured in an accident while traveling. The policy gives insurance coverage for the policyholder and any family members as well as other people living in the household. Also protected are passengers and anyone driving the insured vehicle.
A PIP policy will cover medical payments as well as liability arising from an accident up to policy limits, and it helps keep family finances secure against sudden losses. Some states call PIP plans “no-fault auto insurance,” which typically has a great deal of insurance fraud tied to it. The coverage travels with those who are insured by its terms, including the policyholder and family members who might be living with him or her. So even if driving a rental vehicle or traveling in another person’s auto, the PIP coverage still would pay the bills if there were an injury-causing accident.
Because of its comprehensive and portable coverage for injuries to people insured by them, states with no-fault auto insurance laws are targeted by insurance fraud criminals. A common method of defrauding insurers to stage an accident and send the people allegedly injured to a crooked or fake medical services provider who charges the insurance company a great deal for medical costs and treatments that were not provided. Many states with no-fault auto insurance plans are working to curb the fraud, and some have considered getting rid of PIP plans altogether.
Health insurance plans usually pay for legitimate medical treatments for people involved in car accidents when no-fault insurance does not pay the full amount. As a result, health insurance deductibles will be paid by PIP plans as well as any co-pays, dental care, psychiatric services, the cost of prescription drugs, in-home nursing care and funeral costs. PIP policy limits do place a ceiling on how much will be paid by the no-fault auto insurance plans.
A dozen states have no-fault car insurance requiring PIP insurance plans, and they all suffer a great deal of fraudulent auto insurance claims. But state officials in many high-fraud locales are fighting the fraud and cost they pass on to honest motorists who have no intention of committing fraud and who do not go out of their way to cause accidents. But when no-fault insurance laws are abused, the costs are passed down the law-abiding citizens, making it harder for them to make ends meet and obtain cheap auto insurance for their vehicles.
A PIP policy will cover medical payments as well as liability arising from an accident up to policy limits, and it helps keep family finances secure against sudden losses. Some states call PIP plans “no-fault auto insurance,” which typically has a great deal of insurance fraud tied to it. The coverage travels with those who are insured by its terms, including the policyholder and family members who might be living with him or her. So even if driving a rental vehicle or traveling in another person’s auto, the PIP coverage still would pay the bills if there were an injury-causing accident.
Because of its comprehensive and portable coverage for injuries to people insured by them, states with no-fault auto insurance laws are targeted by insurance fraud criminals. A common method of defrauding insurers to stage an accident and send the people allegedly injured to a crooked or fake medical services provider who charges the insurance company a great deal for medical costs and treatments that were not provided. Many states with no-fault auto insurance plans are working to curb the fraud, and some have considered getting rid of PIP plans altogether.
Health insurance plans usually pay for legitimate medical treatments for people involved in car accidents when no-fault insurance does not pay the full amount. As a result, health insurance deductibles will be paid by PIP plans as well as any co-pays, dental care, psychiatric services, the cost of prescription drugs, in-home nursing care and funeral costs. PIP policy limits do place a ceiling on how much will be paid by the no-fault auto insurance plans.
A dozen states have no-fault car insurance requiring PIP insurance plans, and they all suffer a great deal of fraudulent auto insurance claims. But state officials in many high-fraud locales are fighting the fraud and cost they pass on to honest motorists who have no intention of committing fraud and who do not go out of their way to cause accidents. But when no-fault insurance laws are abused, the costs are passed down the law-abiding citizens, making it harder for them to make ends meet and obtain cheap auto insurance for their vehicles.
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