Fault-free auto insurance is also known as Personal Injury Protection (PIP), and it’s a requirement for drivers in many states. This type of insurance is designed to cover medical expenses in the event that you or your passengers are injured in a car accident, regardless of whether or not you were responsible for causing the accident.
With Error Insurance (sometimes called Personal Injury Protection or PIP), your medical, hospital and passenger bills are covered up to the limits of your policy, minus any deductible. It may also include coverage for lost wages, burial and funeral costs, and more, depending on the insurance company and the state in which you live.
Error insurance does not reimburse you if your vehicle is stolen or damaged, and does not cover damage to your vehicle or the personal property of others in the event of a collision. However, it limits your ability to sue for damages in most cases.
Personal injury protection or error-free coverage is required in dozens of states and optional in many others. Minimum coverage amounts vary by state but range from less than $5,000 to $50,000, and you may be able to increase this amount up to a certain limit.
Let’s say your car hits another vehicle and you and the other driver suffer minor injuries. In the event that error insurance is required, you can file a claim with your insurance company in order to receive reimbursement for your medical expenses. The other driver must do the same with their insurance company. It doesn’t matter who might be responsible for the accident, because with no-fault insurance, there is no need to file a complaint against the other person’s insurance.
Levels of personal injury protection (PIP) coverage vary from state to state. In Kansas, one of the twelve “error-free” states where this insurance is required, the minimum amount of coverage required is $4,500. Contrast that with Michigan, another “no-fault” state. Drivers in that state must carry at least $50,000 in coverage.
If you or your passengers are seriously hurt in an accident and you want to sue the other driver in court for damages, certain criteria apply. Your medical expenses must exceed a certain dollar limit (this is called the monetary limit) or reach a certain degree of risk, such as disabling, maiming, or killing (this is called a verbal limit). This varies between countries. Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah all use a cash limit. The other five no-fault states use a verbal boundary, according to the Insurance Information Institute (III).
Details vary between insurers and policies, but error-free insurance coverage can include:
- medical bills: This includes hospitals, doctors, and other related expenses for anyone who was injured in the vehicle.
- housekeeping servicesYour policy may reimburse you for the cost of hiring someone to take care of household chores that you cannot do on your own due to an injury.
- loss of wages: Some insurance companies may reimburse you for a set percentage of your salary or a fixed amount if you are unable to work.
- End of life expenses: Cremation, funeral or burial costs may also be included.
Although no-fault car insurance is a form of car coverage, you don’t have to drive at the time of the accident to qualify for compensation. In most cases, fault insurance coverage also includes medical payments if you were hit by a vehicle while riding a bike or walking, for example.
What does error insurance cover?
Error insurance is not a comprehensive type of coverage. It only focuses on medical and injury-related expenses for you and your passengers. In most cases, personal injury protection or fault insurance coverage does not include:
- property damage
- Deliberate or criminal acts
- Medical expenses for third parties
Is Error Insurance Required?
Unlike liability insurance — which is required in all states except Virginia and New Hampshire — only a few states mandate fault insurance or personal injury protection (PIP), according to the Insurance Information Institute (III). The minimum coverage required for each person varies from state to state (higher limits may be available) and are as follows:
- Florida: $10,000
- Hawaii: $10,000
- Kansas: $4,500
- Kentucky: $10,000
- Massachusetts: $8000
- Minnesota: $40,000
- Michigan: $50,000
- New Jersey: $15,000
- New York: $50,000
- North Dakota: $30,000
- Pennsylvania: $5,000
- Utah: $3000
In three of these states (Kentucky, New Jersey, and Pennsylvania), drivers have the option of purchasing no-fault insurance or carrying traditional car insurance, which does not limit your right to sue or sue in court for collision damages.
How much is faultless car insurance?
Error-free auto insurance policy premiums depend on a number of factors, including where you live, your driving history, age and gender, desired levels of coverage, and deductibles. With so many variables, the best way to find out the cost of error insurance is to get a quote from your current insurance company as well as two or three other companies.
How do you buy fault insurance?
If you live in a state where personal injury protection is required or optional, purchasing malpractice insurance is fairly simple. Before you buy, there are a few points you should keep in mind to ensure you get the best coverage at the lowest price.
know how much you need
As detailed in the No Fault List, each has its own requirements for the amount of coverage required. However, the condition is only the minimum amount. If you live in a state that requires a relatively low minimum level of personal injury protection — and depending on what type of health insurance you have, if any — you may want to consider purchasing additional coverage if you can afford it.
Understand what is covered
PIP insurance is not a one-size-fits-all car insurance solution. It only covers the medical expenses of the parties in your vehicle. Most states require you to carry minimum car liability insurance to pay damages to other people’s property (such as their car) and medical bills. Collision insurance, which is optional, takes care of your vehicle’s repairs.
There is a discount
When calculating the cost of car insurance without errors, do not forget about the discounted amount. It’s the amount you have to pay out of pocket before your car insurance steps in to pay the rest. The typical amount of the deduction is $500 or $1,000, but the amount varies by state.
As with any type of auto insurance, getting multiple quotes is well worth the effort. The same coverage may be much cheaper with one carrier.
No, malpractice insurance covers medical expenses for you and any other occupants in your vehicle, regardless of who caused the accident. Bodily injury liability insurance covers occupants of other vehicles involved in a collision if you are at fault.
For more information about auto insurance, see the following guides:
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For more information about other types of insurance, see the following guides:
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