No-fault coverage also known as Personal Injury Protection or PIP is one of the types of auto insurance coverages. In many states, it is referred to as medical payment insurance and its main purpose is to pay for medical expenses, and in some cases, loss of income, essential services, accidental death, and funeral expenses – regardless of who is found to be at fault in an automobile accident.
Key points about PIP no-fault insurance:
- It covers losses related to injuries you, your passengers, or anyone authorized to drive your vehicle incur as the result of a collision, but does not cover damage to your vehicle, or to any other property.
- In some states, PIP is required by law; in other states, PIP is not available at all.
- In many states, medical payments are covered under a policy’s medical payments coverage.
- If you live in a state where it is optional, you may want to consider adding it to your policy for extra protection.
In general, no-fault insurance was intended to restrict the policyholder’s right to sue. While you may still be able to sue in some case, there are state laws that determine when you can. For example, you may not have the right to pursue legal action UNLESS one of the following applies:
- Serious injury or death occurred.
- Damages reach or exceed a set threshold.
Should you be involved in a serious car accident deemed your fault in which someone was gravely injured or killed, you may be forced to get high-risk auto insurance. This will, in turn, lead to an SR-22. Although sometimes referred to as insurance, an SR-22 is not a type of car insurance, but a guarantee of insurance that you need to request from your car insurance company. It’s actually a “certificate of financial responsibility”.
SR-22 filings are typically related to serious traffic violations. Generally, you will be required to file an SR-22 for the following reasons:
- You are convicted of driving under the influence (DUI) or driving while intoxicated (DWI).
- You are caught driving without car insurance.
- You are involved in a serious car accident.
- Your driver’s license has been suspended or revoked.
Because SR-22 certifications are linked directly to severe traffic violations and car accidents, you may experience an increase in your car insurance premium or, more than likely, be dropped by your auto insurance company altogether – resulting in you having to shop for another car insurance provider.
Consult one of our representatives and let them help you find the auto insurance coverage that best fits your budget and particular situation.