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Legal FAQ's

• Do I have enough PIP coverage?
• What happens if the other driver has little or no insurance?
• Who will pay my bills in a car accident?

DO I HAVE ENOUGH PIP COVERAGE?

Personal Injury Protection (PIP) benefits are the benefits designed to pay for your medical bills in the event you are injured in a car accident.

In New Jersey drivers are asked to select the amount of PIP coverage they would like for their cars. Personal Injury Protection (PIP) benefits are the benefits designed to pay for your medical bills in the event you are injured in a car accident. It is essential when you select your insurance that you select the proper limits to protect yourself and your family.

When selecting PIP benefits you may first be asked to them for select whether you would like PIP to be Primary or whether you would like your private health insurance to be primary for payment of medical bills. PIP Primary allows the patient to treat with the doctors of their choice and not be limited only to those doctors in their health plan. There are no in network limitations. With private health insurance you may also be required to reimburse them if there is a settlement. This must be paid out of your settlement monies. PIP primary will pay the medical bills without any entitlement of reimbursement out of your settlement monies.

When selecting PIP you must make sure you select the proper deductible and limits. The most common selection is for a $250 deductible with PIP coverage limits of $250,000. Unfortunately many insurance companies like GEICO have made it confusing for people to select the correct coverage. If you do not make any selection they will make it for you. This may result in very limited medical coverage of as little as only $15,000. 1 Day in the hospital and you may have already exhausted your coverage. Be sure when you go through your application that you are selecting at least a $250 deductible with limits of $250,000. This will assure you that if you or your family suffer severe injuries that you have sufficient coverage for your bills.

WHAT HAPPENS IF THE OTHER DRIVER HAS LITTLE OR NO INSURANCE?

In New Jersey it is becoming increasingly more common that when a person is injured in a car accident that the driver who caused the accident either has too little, or no insurance. WHAT HAPPENS?

If the responsible driver is completely uninsured or has insufficient coverage limits, then you may be entitled to additional compensation called uninsured motorist (U.M) or underinsured motorist (U.I.M) benefits through your own car insurance as well as through the car you occupied at the time of accident, or through a resident relatives policy.

It is important that you review your own policy to be sure that your own policy limits are high enough to protect you and your family in the event you are injured by a driver with too little or no insurance.

You may wish to consider no less that $100,000/$300,000 for your U.M/U.I.M limits. Without the proper U.M/U.I.M coverage, even with catastrophic injuries, you run the risk of recovering very little if any money from a negligent driver if they have little or no insurance.

WHO WILL PAY MY BILLS IN A CAR ACCIDENT?

In New Jersey if you are the owner of a car, your insurance will be primary in the event of a car accident even if you are in another persons car at the time. All bills will need to be sent to your own insurance for payment.

If you do not own a car, then you may be entitled to medical benefits through the car insurance of a family member you lived with at the time of accident.

If you did not own a car and did not reside with an immediate family member who owned a car, then you may be entitled to medical benefits through the car insurance for the car you were in at the time of accident.

Depending on the facts of your case it can be very confusing as to which insurance is the proper company to pay your medical bills. It is always wise to discuss your accident with a qualified attorney who can advise you how to properly file your claim for medical benefits.