What Is Personal Injury Protection (PIP)?

Personal injury protection (PIP) is a type of no-fault insurance coverage designed to help cover medical expenses, lost wages, and other accident-related costs, regardless of who is at fault. It is not mandatory for drivers to have PIP in Maryland.

We’ll discuss some benefits and things to be aware of, as well as how legal representation from a Maryland personal injury lawyer can help.

Key Features of Personal Injury Protection in Maryland

In Maryland, personal injury protection (PIP) provides coverage regardless of fault, meaning you can file a claim and receive benefits for accident-related injuries without needing to prove who caused the accident. This allows for quick reimbursement of medical expenses, lost wages, or essential services while you recover.

Although PIP operates on a no-fault basis, Maryland is an at-fault state for car accidents, meaning liability for damages is typically assigned to the responsible party. However, PIP coverage exists separately from the fault-based system, ensuring that injured parties can access funds for immediate needs without the need to determine fault (which can be a complicated process).

When choosing whether to waive PIP on your insurance, it’s important to understand what PIP will cover in the event of an accident. Here are some key components:

Medical Expenses

PIP covers necessary medical expenses resulting from an accident, such as hospital bills, doctor visits, physical therapy, and prescription medications. These costs are reimbursed up to the coverage limit, typically $2,500, although some insurance companies do offer a higher coverage amount as an option.

Lost Wages

If an injury prevents you from working, PIP reimburses up to 85% of lost wages. 

Essential Services

PIP can also cover costs for services you can’t perform due to your injury, such as childcare, housekeeping, or meal preparation.

How to Use PIP If You Have It

To file a PIP claim, you must report the accident to your insurance company and provide documentation, such as medical bills or proof of lost income. Once the claim is approved, the insurer pays benefits directly, up to the policy limit, helping to bridge the gap before other claims are resolved. A Maryland personal injury lawyer can help you to gather supporting evidence for your claim.

Who Is Covered by Personal Injury Protection?

In Maryland, personal injury protection (PIP) coverage applies to multiple parties, ensuring broad protection in the event of an accident.

These parties are:

• The Policyholder: If you hold a PIP policy, you are covered for medical expenses, lost wages, and related costs stemming from an accident, regardless of fault.
• Passengers: PIP extends to passengers in your vehicle at the time of the accident. This coverage applies whether they are family members, friends, or others riding with you.
• Pedestrians and Cyclists: PIP may also cover pedestrians or cyclists struck by the insured vehicle, providing financial assistance for their injuries.

PIP vs. Other Types of Insurance

Personal injury protection (PIP) differs from other types of auto insurance. Unlike bodily injury liability, which covers damages you cause to others, PIP covers your own medical expenses and lost wages regardless of fault.

While health insurance may cover some medical costs, PIP is specifically designed for accident-related injuries and can cover expenses like lost wages or essential services that health insurance does not. Additionally, PIP does not include property damage, which is covered under separate collision or liability policies. PIP instead complements these coverages, providing immediate financial relief for injury-related costs.

Advantages and Disadvantages of Personal Injury Protection

Personal injury protection (PIP) offers several key benefits to Maryland drivers, passengers, and pedestrians, as mentioned above. It also has some key disadvantages, including limits and exclusions, which are essential to understand. 

The disadvantages of PIP include the following: 

• Coverage Limits: The standard PIP coverage in Maryland is $2,500, which may not be enough to cover extensive medical bills or prolonged lost wages. Policyholders must rely on additional insurance or legal claims for expenses beyond this limit.
• Disputes Over Claims: Insurance companies may challenge the legitimacy of PIP claims, questioning the necessity of treatments or the connection between injuries and accidents. It’s important to note that medical care received needs to be deemed “necessary,” which may make it harder to claim coverage for some elements of your treatment. Proper documentation, such as medical records and proof of lost income, is critical.
• Impact of Waivers: Maryland allows policyholders to waive PIP, reducing premiums but leaving them (and anyone they may accidentally harm) unprotected. Waiving PIP can create financial strain if injuries occur. We advise drivers to purchase PIP coverage. 
• Pre–Existing Conditions: Insurers may argue that injuries were pre-existing rather than caused by the accident, complicating claims.

If you have questions regarding your current policy and personal injury protection, our legal team can help you find answers. 

Do You Need Personal Injury Protection?

Ultimately, you are likely reading this to determine if you should waive PIP or not. Personal injury protection (PIP) is a valuable safety net for Maryland drivers, offering coverage for medical bills, lost wages, and other costs regardless of fault. 

While PIP is not mandatory in Maryland, auto insurance companies must offer the policy, and you do have the option to waive this coverage. However, choosing to keep or increase PIP coverage can provide significant benefits in case of an accident.

Consider factors such as your driving habits, financial situation, and existing health insurance. If you frequently transport passengers or lack comprehensive health coverage, PIP offers added peace of mind. 

Contact a Personal Injury Lawyer in Maryland

If you’ve been injured in an accident, whether you have personal injury protection or not, it can be helpful to contact a Maryland personal injury attorney. A lawyer can help you file your claim, negotiate with the insurance company, and gather evidence to support your need for compensation.

Contact the Maryland personal injury lawyers at Adam Smallow Injury Lawyers for a free review of your case. As our client, we can connect you to a network of high-quality medical professionals as well.