In Utah, the law requires that all drivers have insurance. This is so that others are protected if you cause them harm. Also, in Utah you can completely opt out of coverage for yourself (known as underinsured and uninsured coverage). However, there is one type of insurance that protects yourself that you cannot opt out of. That is called personal injury protection or “PIP.” This is sometimes referred to as “med-pay” or “no fault” coverage. Regardless of the term used it all means the same thing.
PIP coverage is essentially a pot of money sitting there waiting to be used in the event of an injury arising from an automotive crash or any kind. Fault is not at issue. If the injury is your fault or someone else’s fault, the money is still available for you to use.
What types of things can PIP pay for? PIP covers lost income, household services and medical bills. Give us a call if you are unsure if something is covered under your PIP coverage.
How does PIP work?
Suppose John has a car and buys State Farm Insurance. In his insurance policy, it includes PIP coverage. On the other hand, Jess has a car and an insurance policy from Allstate. In an unfortunate accident, Jess hit the rear end of John’s car. In the said accident, it is clear that Jess is at fault. In the crash John was injured.
The insurance company that provides insurance coverage for John (State Farm) will cover the medical bills up to the amount of PIP coverage available. Traditionally, most would think that since Jess is at fault, her insurance company (Allstate) would pay. But under PIP, State Farm will pay. If John recovers while spending less than $3,000 then Allstate does not have to pay anything. However, if John’s recovery exceeds $3,000 then Allstate will be required to step in and pay for John’s medical expenses and all other harms and losses including pain and suffering. This is also known as “threshold law.” Also, if Allstate does step in State Farm must be reimbursed the money they paid out unless Allstate pays the full policy limits to John via settlement/verdict.
Important note*** the minimum required PIP amount is only $3,000 but for only a few extra dollars per month you can increase your PIP coverage to $10,000. At Injury Defenders, we would recommend that you increase your PIP coverage to at least $10,000 because this is the money that will be available to you no matter how you get injured. Give us a call today to discuss your personal insurance. We are happy to sit down and give you free advice on your insurance policy to ensure that you are actually protected. Give us a call today at (435) 986-2222.