BODILY INJURY

DEFINED:

Coverage against being sued when a person covered by your auto policy becomes legally responsible for damages related to the bodily injury of others in an auto accident.

CHANGES:

1. Comparative Negligence: perhaps the biggest change is that we can now be sued for any percent of fault in an accident, where we had to be 50% at fault or more to be sued. This severely lowers the threshold for being sued- good limits are even more important as a result.
2. Increased Minimum Limits: The mandatory minimum bodily injury coverage limits were increased. Prior to the reform, the minimum required BI coverage was $20,000 per person and $40,000 per accident (often referred to as 20/40). Starting July 2, 2020, the new minimum limits are $50,000 per person and $100,000 per accident (50/100).
3. ​Default Coverage: The default BI coverage limit was set at $250,000 per person and $500,000 per accident (250/500). However, policyholders can choose lower limits (down to the new minimum of 50/100) or higher limits if desired.

WHAT ARE MY OPTIONS:

$50,000 per person, $100,000 per occurrence
$100,000 / $100,000
$100,000 / $300,000
$250,000 / $250,000
$250,000 / $500,000
$500,000 / $500,000
$500,000 / $1M
$750,000 / $750,000
$1M / $1M
More with an "Umbrella Policy"

WHAT DO I PICK:

We recommend:

1. Don't go below the State's recommended limit ($250k/$500K)
2. Shifting your limits up a level or two
   1. Your limits should be at least twice what your assets are. For more on assets, click this link: What are Personal Assets?

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PIP MEDICAL

DEFINED:

Provides essential benefits to cover medical expenses and other related costs for individuals injured in an auto accident, regardless of who is at fault

WHAT DO I PICK: 

Option 1, Unlimited. You will never regret it. 

CHANGES: 

In short, you can now pick what level of coverage you want for you and your relatives that live in your home. 

WHAT DOES PIP MEDICAL COVER:

1. Medical bills (of course)
2. Rehab / Therapy
3. Fitting of home or auto to accommodate new disability, including purchase of new unit
4. Attendant Care (very costly, time consuming and strenuous)
5. More

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HOW LONG DO BENEFITS LAST:

Injuries can last a lifetime. The benefits last your lifetime, or until the dollar amount runs out.

WHAT ARE MY OPTIONS:

Option 1: Unlimited
Option 2: $500,000 per person, per accident
Option 3: $250,000 per person, per accident
Option 4: Exclude some/all people, $250,000 for those not excluded
Option 5: $50,000 for those on Medicaid
Option 6: Exclude for those on Medicare and Qualified Healthcare Coverage

WHY PICK UNLIMITED: 

Picking any option other than Option 1, unlimited and you possibly become reliant on your health insurance, be that a private health plan with your employer, medicaid or medicare. 

Private health plans can end. When they end, so does coverage. That means from then on, the cost is out of your pocket. So if you are hurt enough where your employer has to let you go, which also ends your health plan, you are now on your own. PIP Medical's coverage period never ends, so long as you have money left from your limit.

All plans come with caps, deductibles and co-pays. That is out of pocket expense.

Health plans don't commonly pay for things like attendant care, fitting of house/auto to an injury, rehab/therapy is very limited, and much more. 

In short, if hurt in an auto accident and you have unlimited PIP, you just never have to worry- all those things are covered.