When Purchasing Auto Insurance, Avoid the Personal Injury Protection (PIP) Deductible

auto-insuranceIn Massachusetts, drivers are required to carry Personal Injury Protection (PIP) benefits, which pay for, among other things, medical bills relating to an automobile accident. Recently, insurers have found a way around this requirement by allowing their customers to opt for a PIP deductible. While it may seem like a good thing to lower your insurance bill, it could be a costly mistake.

What most consumers do not know is that if you have private health insurance in Massachusetts, that insurer will not pay for medical bills relating to an automobile accident until PIP coverage has been exhausted. If a consumer signs up for a PIP deductible, that means the consumer is on the hook for the first $2,000 or more of medical bills before their insurer even starts to pay any medical bills. Do not make this costly mistake.

You might think that insurers who offer PIP deductibles should better explain this situation in Massachusetts so that consumer understand the coverages they are getting, and those they are not. You might be right, as one insurer recently settled an $8 million class-action lawsuit alleging that the insurer improperly advised consumers regarding PIP coverage.

If you have been injured in an automobile accident, and you have a PIP deductible on your policy, there are ways to address the problem. Contact KPDM Law, LLC and let us help you.