Personal Injury Insurance

Personal injury insurance, often referred to as personal injury protection, is basically an extension of auto insurance. It covers medical expenses, and in some cases, lost income as a result of the accident. It will often cover future loss of income if the accident was permanent and prevented the individual from making their income in the future. Personal injury insurance will also often cover child care, if the individual is unable to do so as a result of an accident. Personal injury insurance is often referred to a no fault coverage. This means that the coverage is paid out, regardless of whose fault it was or who was legally liable. By definition, the insured's premium cannot increase due to a personal injury claim.

This type of coverage varies greatly from state to state, with personal injury insurance covering a wide array of treatments and what it actually covers. In some states for example, acupuncture is considered a reasonable medical treatment and would be covered by your personal injury insurance, while other states would not. Some states also allow a claimant to file a worker's compensation claim, in addition to their personal injury claim, while other states do not. A common occurrence is for insurance companies to pay your claim, and then recover this money from the liable party's insurance provider. This leaves the insured in a great position, as they are not tied up in the subsequent legal battles, that are often very messy and drawn out over a long period of time.

Often times, personal injury insurance will also cover the funeral expenses of an individual injured in an auto accident who later dies. As with most areas in the world of personal injury insurance, this differs greatly from state to state. The maximum claim for this type of insurance in most states is around $250,000, depending on the nature of the claim and the extent of the damages.

As a general rule of thumb, you should consider purchasing as high a personal injury insurance limit as you can afford. This way, you'll have additional coverage beyond what your health insurance policy offers. The policy limit you choose is often based on the cost of health care, your deductibles or co-payment arrangements, protecting your savings for the future.

Personal injury insurance isn't the most expensive coverage on your insurance policy, but it isn't the cheapest. It's one of those policies that will fall somewhere in the middle. The great thing about personal injury insurance is that it serves as a supplement to your regular health plan. In the event of an accident, you will quickly find that the extra coverage is generally worth it. Health insurance companies may offer short-term disability insurance for a particular claimant, but not cover a long-term claim. In some cases, your personal injury insurance will offer a de-facto long-term insurance if an accident has left you unable to sustain your income.

For your reference, below is a list of states with mandatory personal injury insurance (in alphabetical order): Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah.