FRIDAY, AUGUST 28, 2020
All Utah residents have to buy car insurance, and the law requires no-fault coverage in particular. One of the components of this coverage is Personal Injury Protection, also called PIP. How does this coverage work? How can it help you out after a vehicle wreck?
It’s important for Utah residents to always carry the PIP coverage required of them by law. However, you can also increase your coverage to your benefit.
Understanding No-Fault Car Insurance
Most states assign fault in car wrecks. This means that the driver that causes a wreck must pay for costs like the property damage and injuries of other involved parties. They usually use auto liability coverage to do so.
Other states, Utah included, are a bit different because they have no-fault laws. These regulations help reduce the number of lawsuits that might follow car wrecks. They allow drivers to first use their own car insurance to pay for their own damage. Only
after the cost of their losses meet qualifying thresholds can someone file a claim on the at-fault driver’s liability policy.
The coverage required by no-fault laws is personal injury protection. Work with your Utah insurance agent to determine the amount of coverage that is right for you.
By law, all Utah auto insurance policies must contain at least $3,000 in PIP coverage. If you fail to carry this coverage, then you could face penalties.
PIP insurance helps drivers hurt in accidents cover their own injury costs and related losses following car wrecks. So, say for example that you have a wreck that injures your back. While health insurance can pay for certain medical costs, that doesn’t mean it always will cover all of them. PIP coverage can step in to cover your remaining medical costs.
Not only that, but PIP can also assist you with more than just hospital costs. It can cover other financial hardships that might arise following wreck injuries. These might include:
The policy will help you be able to weather the recovery period from a wreck in a more effective manner. You won’t have to face financial hardships as you attempt to recover from an unfortunate accident.
Even though you have PIP coverage on your own policy, that doesn’t mean you might not be able to use someone else’s liability insurance to cover your damage costs as well. That also means that they might be able to make a claim against your liability policy. Drivers need to carry bodily injury liability coverage to help cover them in such situations. Utah requires drivers to carry this coverage in addition to their PIP coverage.
Expanding your PIP Coverage
Utah’s PIP insurance requirement is not the maximum amount of PIP coverage you can carry. Therefore, you can increase your policy limits to provide you more assistance.
To file against someone else’s bodily liability coverage, you must meet a threshold of at least $3,000 in medical expenses. In other words, you essentially have to exhaust your PIP coverage on medical costs alone before filing a claim on liability overage. That could leave no coverage for other expenses that PIP might otherwise cover.
As a result, it is often a good idea to increase your policy’s PIP coverage. You will have more money available from your own policy. This often makes the process of claiming benefits much easier. You might not have to worry about even having to file a claim on another party’s policy, which can save you a lot of hassle and legal expenses. Instead, you will know where your help comes from every time.
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