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When purchasing liability coverage for a car, boat or motorcycle the PIP coverage needs attention. The liability bodily
injury coverage is medical coverage for persons injured by your vehicle but it does not cover persons inside your vehicle.
While I have known of cases where a person riding in a vehicle that was at fault for an accident has sued the driver that
was nice enough to give them a ride. The thinking here is that since I was riding with you, my doctor bill is also on you.
PIP is a coverage that will pay for medical bills incurred by a passenger in your vehicle no matter who is at fault.
The aspect that either at fault or not is the key leaves an option for the injured to use their own insurance. Although most
medical insurance carries a deductible that the PIP could satisfy.
Here in Arkansas the coverage is mandatory unless
rejected in writing. The rejection has to remain in effect for the entire policy period and extends to any policy endorsement
to add vehicles or drivers. The coverage can be endorsed to the policy and has usual increments of $5000 up to $50000.
PIP comes in different coverage options that also has to be selected or rejected by the named insured. These
include: PIP plus accidental death - PIP plus accidental death and disability - PIP plus disability - PIP without either
accidental death or disablity.
These options can be confusing so this is another reason to trust
the agent you are dealing with.
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