PIP or personal injury protection claims are some of the most common types of auto accident injury claims. Residents of Philadelphia who are injured in car accidents are often confused about the types of benefits they can receive under their own car insurance policies. In fact, the majority of people injured in car accidents are surprised to learn that they are eligible to make a PIP claim under their own insurance policy, as opposed to the car insurance policy of the at-fault driver. This is Pennsylvania’s “no-fault” principle in play.
This article will discuss the types of PIP claims available after a car accident in Philadelphia. It is important to note that the actual types of PIP coverage in a given car insurance policy will vary. That’s because most types of PIP coverage are optional, not mandatory. Under PA auto insurance law, the only type of PIP coverage that is mandatory is $5,000 of medical benefits. Click here to read more about how medical bills are paid after a car accident in PA.
Pennsylvania’s Motor Vehicle Financial Responsibility Law (MVFRL) lays out which PIP benefits a car insurance company must offer to customers:
- medical benefits,
- extraordinary medical benefits,
- lost income benefits,
- death benefits, and
- funeral benefits.
See 75 Pennsylvania Consolidated Statutes Section 1712 (listing PIP benefits available) and Section 1715 (describing the limits of PIP benefits).
Medical Benefits ($100,000) & Extraordinary Medical Benefits ($100,000 up to $1,000,000)
Under the MVFRL, car insurance companies must offer additional medical benefits; this is in addition to the $5,000 minimum limits described above. First, car insurance companies must offer additional medical benefits of up to $100,000. Second, they must offer extraordinary medical benefits, over $100,000, up to $1,000,000. These pay for a wide variety of medical treatment and rehabilitation services necessary after an auto accident.
Income Loss Benefits
Income loss benefits apply to car accident cases where the individual’s injuries cause a temporary or permanent disability. For example, a construction worker who breaks his arm in a car accident and cannot work for 2-3 months would be eligible for income loss benefits. However, these benefits are optional; many residents of Philadelphia opt out of this important benefit. Car insurance companies are required to offer income loss benefits which cover at least 80% of gross income, up to at least $2,500 per month and up to a maximum of at least $50,000. There are some limitations. For instance, while self-employed individuals can make claims for income loss benefits, the benefits are not available in fatal car accident cases. In addition, there is a statutory 5 day waiting period.
There are two types of death benefits available under PIP coverage; however, they are optional. Accidental death benefits, if elected, pay the personal representative of the deceased in the amount of at least $25,000. Car insurance companies must offer at least $2,500 of funeral benefits to pay for burial, cremation, etc.
DISCLAIMER: This website does not create any attorney-client relationship or provide legal advice. It is crucial to speak to a qualified lawyer prior to making any decision about your case. Read full disclaimer at the bottom of this page.