New York state law mandates that drivers carry PIP coverage as part of their auto insurance policy, in accordance with its no-fault insurance regulations.Selecting the right Personal Injury Protection (PIP) insurance in New York requires a thorough understanding of your specific needs and financial circumstances. The insurance experts at Moneyquince provide valuable insights into how PIP functions in New York, assisting you in obtaining the appropriate coverage.
First Look
PIP stands for Personal Injury Protection. It’s called “PIP” because it provides coverage for personal injuries resulting from car accidents, regardless of who is at fault. The term “protection” highlights its purpose of safeguarding individuals involved in accidents by covering their medical expenses and, in some cases, lost wages and other related costs.
Key Contents:
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What are the PIP insurance coverage limits?”
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury Liability per person | $25,000 |
| Death per person | $50,000 |
| Bodily Injury Liability per accident | $50,000 |
| Death per accident | $100,000 |
| Property Damage Liability per accident | $10,000 |
| Personal Injury Protection (PIP) | $50,000 |
| Statutory Uninsured Motorist Bodily Injury per person | $25,000 |
| Statutory Uninsured Motorist Bodily Injury per accident | $50,000 |
In New York, PIP insurance is mandatory, requiring a minimum coverage of $50,000 as part of your auto insurance policy. Most U.S. states have specific minimum car insurance requirements for legal driving. New York’s minimum coverage includes bodily injury liability, death, property damage liability, PIP, and statutory uninsured motorist bodily injury coverage. However, statutory uninsured motorist coverage only applies within New York state borders. Supplemental uninsured motorist coverage, offering protection both inside and outside the state, is optional but not mandated as part of New York’s minimum coverage.
Difference Between Medical Payments Coverage and Personal Injury Protection (PIP):
While both Medical Payments (MedPay) coverage and Personal Injury Protection (PIP)insurance serve to cover medical expenses for you and your passengers regardless of fault, there are distinctions between the two. MedPay is limited to reimbursing medical costs such as hospital visits, surgery, and qualified medical charges, along with funeral expenses. On the other hand, PIP not only covers these medical expenses but also extends to include rehabilitation, compensation for lost wages if you’re unable to work due to the accident, and assistance with household tasks while recuperating from your injuries.
Maximizing Your No-Fault Insurance Coverage in New York:
In New York, consumers have limited options for reducing no-fault insurance costs compared to other states like New Jersey or Michigan. While selecting a higher deductible, such as $200, may slightly lower premiums, coordinating coverage with health insurance is not permitted. However, additional coverage options like Optional Basic Economic Loss insurance (OBEL) and increased Personal Injury Protection (PIP) coverage can enhance your protection.
| Coverage Option | Details | Cost (Approx.) |
|---|---|---|
| Higher Deductible | Opting for a $200 deductible might lower premiums slightly, but it offers minimal savings. | $3.50 |
| Optional Basic Economic Loss | OBEL provides additional coverage beyond the $50,000 minimum, at a relatively low cost. | Less than $30 |
| Additional PIP Coverage | Increasing PIP limits can provide substantial extra coverage for a modest additional cost. | Less than $30 |
In urban areas like New York City (NYC), insurance rates may differ from those in smaller cities such as Albany. Considering the modest savings with a higher deductible, it’s important to evaluate whether the $200 out-of-pocket expense justifies potential savings, especially since OBEL and additional PIP coverage offer considerable added protection for a relatively low cost.
Coverage of PIP Insurance In New York:
In cases where your injuries prevent you from working, PIP insurance coverage in New York extends to cover any lost wages, capped at $2,000 per month or 80% of your monthly earnings, whichever is lower. This compensation is available for up to three years following the accident, within the limits of your policy. For instance, if your monthly earnings amount to $6,000, you would receive $2,000 for lost wages. If your monthly earnings are $1,500, you’d receive $1,200, which equals 80% of your earnings.
Additionally, PIP insurance provides $25 per day to assist with everyday tasks that you are no longer able to perform due to your injuries. This includes chores such as laundry and home maintenance, covered by the daily allowance.
Furthermore, you have the option to increase the minimum PIP insurance limit of $50,000 to $75,000 by purchasing Optional Basic Economic Loss (OBEL) insurance. You can also further increase this limit by purchasing additional PIP coverage.
In the unfortunate event of a fatal accident involving an eligible insured driver in New York, the driver’s estate is entitled to receive $2,000 to assist with covering funeral and burial expenses. This provision mirrors a common feature found in the no-fault insurance laws of many states.
PIP Benefit:
Optional Basic Economic Loss (OBEL)
OBEL provides an extra $25,000 in no-fault insurance benefits, offering flexibility for medical expenses, earnings losses, psychiatric or rehabilitation costs, or a blend thereof. This valuable option ensures additional support for potential long-term recovery needs, providing peace of mind at a minimal cost (less than $15 per year).
Medical Expenses Covers :
PIP insurance in New York comprehensively covers a range of medical expenses resulting from a car accident. These include:
- Medical services
- Dental services
- Hospital expenses
- Surgical services
- Psychiatric and physical rehabilitation costs
- Diagnostic services such as X-rays
- Ambulatory services
- Treatment in alignment with a recognized religion
New York Car Insurance companies rate/month:
Here are the monthly rates offered by various car insurance companies in New York:
| Company | Monthly Rate |
|---|---|
| Progressive | $52 |
| Erie | $72 |
| State Farm | $85 |
| Geico | $87 |
| Travelers | $132 |
| Allstate | $133 |
| USAA* | $57 |
New York PIP insurance Claim Filing Deadline:
According to the New York State Department of Financial Services, individuals can submit a PIP claim within 30 days following an accident involving injuries. This claim applies to injuries sustained by both the policyholder and passengers in their vehicle. It’s essential to file the claim regardless of fault, as PIP coverage is provided irrespective of fault in the accident.
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