Car Insurance In Illinois Is Not 'no Fault' Insurance. But Pip Protection May Be Added

First Party coverage in car insurance refers to the coverages which the policy grants to the people insured. Two principal elements of auto insurance coverage are medical payments (Med Pay) and Personal Injury Protection (PIP). The type of insurance coverage elected will vary depending on what is asked in each state. It is very necessary to comprehend these two very different kinds of insurance coverage and how it will handle any possible auto insurance claims. Both Medial Payments Coverage and Personal Injury Protection are considered 'first party coverage.' This means that it applies to the named insured or member of the insured's household, the passengers of the insured and certain others on occasion. Understanding Medical Payments (Med Pay) Medical Payments Coverage is necessary in some states that do not have 'No Fault' laws in place. Med Pay Coverage will pay for acceptable medical and funeral expenses resulted from bodily injury or death that is caused by an car accident. The limit of liability for Med Pay Coverage is stated in a auto insurance policy declaration page. There is a limit on medical payment coverage. This is the limit per qualified injury party related to the accident. Ultimately, Med Pay Coverage will allow for the injured party to receive medical treatment and not worry about the costs associated with that treatment. The most frequent limits on Medical Pay are $1,000 to $5,000 per person, although a limit of $25,000 is attainable with certain, normally preferred companies. Certain non standard companies offer up to $1,000 per person. Understanding Personal Injury Protection (PIP) Which party is to blame for paying for bodily injury in the event of a car accident? You, or the other driver? In jurisdictions that follow the "tort liability" discipline, the individual that created the damage is the one that is determined to be responsible for paying all the damages. What about if you were, to some degree mostly responsible for an accident, who will pay for your bodily injury? To exclude the course of the driver considered not to have brought about an accident having to pursue legal action against the other operator's insurance company to cover damages, PIP policy was 'invented' to deal with that issue. States that adopted PIP policy are called the "no fault" states. Fifteen states Besides the District of Columbia require following the 'no fault' system, hence requiring automobile insurance policies to include the Personal Injury Protection or PIP,. These states are: Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon , Pennsylvania, Texas, and Utah. Illinois is one of the states that still offer the traditional "tort liability" systems where there are no boundaries on law suits. To get paid for your bodily injury you must sue someone, and you may win based on the realities that your opponents were irresponsible and created your bodily injury that directly caused you loss and suffering. That is why medical payment is even more important in Illinois: You do not have to sue any party to take it. Remember that the fact that Illinois, or any similar state, is not an 'at fault' state, it does not preclude car insurance carriers to endorse their policies to contain the PIP. However with the fierce competition among auto insurance companies, only few give you the choice to have the PIP rider, at additional higher price. Limits and Coverages: Despite the fact that PIP minimum coverage limits change between participating states, they are similar in that the benefits usually cover most injury-related costs including: medical bills, lost earnings as a result of injuries, compensation for loss of services, funeral expenses, and death benefits. The PIP can also cover bills associated with certain psychiatric assistance affiliated with bodily injury, physical or occupational therapy and any rehabilitation expenses associated with auto insurance claims. Generally, damages such as pain and suffering, and emotional distress and inconvenience are not covered by no-fault insurance coverage. In addition, PIP does not provide any protection for any injury caused by work related car accidents. Finally, if you live in a 'no fault' state, there is one reason to not purchase both Med Pay and PIP insurance. There is an duplication in coverage. This is because PIP insurance provides more coverage in case there is a need to file medical claims related to an automobile accident, regardless of fault. Deductibles on PIP Liability: Most people in 'no fault' states are used to the PIP policy with no deductibles, although there are many companies offering PIP with deductible.