“How much PIP coverage should I get?” This is one of our most frequently asked questions—and an important one to ask before that coverage is needed
The Poole Law Group is committed to protecting what matters—and we believe that everyone benefits from carrying personal injury protection (PIP) insurance. This post will cover PIP (Personal Injury Protection); the next two will cover Liability Coverage, and UM/UIM (Uninsured/Underinsured Motorist Coverage).
If you have an urgent question regarding your Maryland PIP insurance coverage,
call the Poole Law Group: (301) 790-3600.
With this blog post, and the two that will follow in this series, we want to take you through how an attorney views auto policy coverage. Always consider how much coverage you have before you are involved in an accident. You should think about how much coverage you have LONG before you have an accident. So, let’s go through the various parts of an auto policy, piece by piece.
Disclaimer: As personal injury attorneys in Hagerstown and Frederick, we focus on the injury in Maryland to your person. This means we will negotiate the value of your vehicle with the insurance company, but it is a small part of what we do, and therefore these posts will not discuss compensation/collision coverage for your vehicle.
What is Personal Injury Protection (PIP)?
Personal Injury Protection (or “PIP”) coverage is a type of insurance that is optional for Maryland drivers. It is a “no-fault” auto insurance that covers lost wages and medical care after an auto accident. The “no-fault” aspect of PIP coverage means that it will cover your damages regardless of who caused the crash, unlike body injury liability coverage, which I will discuss in my next post. Ideally, you should have enough basic personal injury protection insurance, or “PIP coverage,” to pay bills or deductibles or cover wage gaps you might not be able to cover right after a crash.
The amount of coverage that should be carried will vary depending on each individual circ*mstance, but it is always a good idea to at least obtain the minimum amount of personal injury protection offered.
Understanding PIP Insurance in Maryland
Maryland Insurance Code Section 19-505(a) denotes seven (7) types of PIP insurance coverage: for you (the insured); for passengers in the insured vehicle; family members living in your household; “permissive users” (anyone permitted to use your vehicle); passengers in your car; and injured pedestrians.
Does Maryland require PIP insurance?
Maryland does not require PIP insurance. Insurance companies must offer PIP coverage with a minimum of $2,500. To not have PIP coverage, you must execute a waiver stating that you have declined PIP coverage. While PIP is not state-required, we strongly recommend purchasing the PIP medical expense limit within your state to keep yourself protected if you get injured in a car accident.
Should I carry PIP insurance in Maryland?
While it is not required, we strongly recommend that all Maryland drivers carry the maximum amount of PIP insurance. If it sounds like our law firm is owned by an insurance company, be assured that just the opposite is true. As attorneys in Hagerstown and Frederick, MD, who represent victims of personal injury, our interests are often directly adverse to the insurance company’s interests.
However, both sides agree that individuals should buy more insurance. We want you to have better coverage, and insurance agencies want to charge you slightly higher premiums (“slightly” is highlighted because you can often double the amount of coverage for less than a fifty-dollar increase in rates).
Talk to a Hagerstown, MDPersonal Injury Protection Expert
How long do I have to file a PIP claim in Maryland?
As per Maryland law (Insurance Code Section 19-508), you have just one (1) year from the accident date to file a no-fault insurance claim. If you attempt to file your PIP claim beyond Maryland’s one-year statute of limitations, you will likely be ineligible for compensation.
Additional Resources on Maryland PIP Insurance:
- Maryland Insurance Code (19-505): Personal Injury Protection Coverage
- Maryland’s Consumer Guide to Auto Insurance for Teens and Young Drivers
- Maryland’s Required Notice of Personal Injury Protection (PIP) Coverage and Options Selection Form
5 Facts About Personal Injury Protection (PIP) Insurance
- PIP is sometimes referred to as “no-fault” insurance. The standard minimum personal injury protection coverage is $2,500.00. If you are injured in an accident, your auto insurance company will pay this amount for your medical bills (and depending on your policy, even lost income wages) without any regard to who was at fault in the accident.
- PIP insurance is not required in Maryland. While you are not required to carry PIP insurance in the state of Maryland, insurance companies are required to offer it to you. If you deny PIP coverage, you will need to sign a waiver stating that you are foregoing this extra insurance protection.
- Your premiums will not go up if you make a personal injury protection claim. As per Maryland Law (Insurance code section 19-507), Your insurance company is prohibited from increasing your insurance premium if you use your PIP coverage.
- Personal injury protection insurance offers double recovery. Due to the collateral source rule in Maryland, the defendant’s insurance company is not allowed to know who paid for your medical bills. Therefore, you can use your PIP insurance to pay your medical providers the cost of your medical bills, while the defendant’s insurance has to pay you, not your medical providers, the full cost of your medical bills. Further, under Maryland law, your auto insurance is not allowed to place a subrogation lien for any of its PIP payments against your settlement with the Defendant’s insurance company.
- The Poole Group recommends $10,000 in PIP coverage. Our Maryland personal injury attorneys have seen policies that have $5,000 or $10,000 of PIP coverage. We suggest that anyone buying an auto policy should try to secure $10,000 of PIP coverage. This way you know you will at least have the first $10,000 of your medical bills (and possibly lost wages) covered with no questions asked.
Questions? Call the Poole Law Group: (301) 790-3600
Frequently Asked Questions about PIP Insurance
What is the difference between personal injury protection (PIP) insurance vs. bodily injury insurance?
The difference between PIP and bodily injury insurance is that PIP is no-fault coverage while bodily injury insurance requires someone to be at fault. Let’s look at an example.
In Maryland, if someone rear-ends you, they, most likely, are at-fault for the accident. Therefore, if you are injured, you can make a claim with their bodily injury insurance coverage and your PIP insurance coverage.
In Maryland, if you rear-end someone and are injured, you, most likely, are at-fault. Therefore, you can make a claim with your PIP insurance, but not your or anyone else’s bodily injury insurance.
The final distinction between bodily injury vs. PIP insurance is the amount of insurance. Maryland state law requires that you carry “a minimum of $30,000 per person and $60,000 per accident in bodily injury liability coverage,” while the minimum amount of PIP coverage is $2,500.
Do I need PIP insurance if I have health insurance?
Yes, you should have Personal Injury Protection (PIP) coverage even if you have health insurance for a number of reasons.
- Land ambulances are not covered by the No Surprises Act. Therefore, ambulance companies do not have to bill your health insurance, and in Maryland, many ambulance companies will not bill your health insurance, but you file those ambulance bills with your PIP insurance.
- Health insurance will not compensate you for any lost wages, which your PIP insurance will.
- Depending on your health insurance, your health insurance may not cover the full cost of your emergency room visit. Your PIP insurance can pay the remaining balance on that emergency room bill.
Does PIP cover car damage?
No, PIP insurance does not offer reimbursem*nt for auto repairs or personal property. It only covers lost wages and medical expenses. Also note that PIP coverage does NOT include buses, taxis, and other rideshare vehicles.
What expenses does PIP cover?
PIP insurance covers medical expenses, lost wages and funeral expenses resulting from an accident. This coverage is irrespective of who is at fault and may continue for up to three years from the date of the accident.
How long do I have to file a PIP claim?
In Maryland, you have just one (1) year to file a PIP claim.
Call the Poole Law Group to begin the process: (301) 790-3600.
Will filing a PIP claim affect my insurance rates?
If you are not found liable in the accident, your insurance company is forbidden from increasing your insurance rates after filing a PIP claim.
[Next: Part 2 of 3: Liability Coverage]
