PIP is an acronym for Personal Injury Protection.
PIP pays for the medical bills and lost wages for people who are injured in a car accident.
PIP pays for your medical bills on top of whatever the at fault party’s insurance company pays. This is a classic double recovery permitted under Maryland Law.
This coverage is for only those individuals who were in the vehicle, including passengers that the PIP policy covers.
Maryland residents can apply even if the accident occurs outside the State of Maryland.
It is limited to the amount of coverage the policy carries. Generally the minimum is $2,500 per individual. PIP can also be purchased in the amount of $5,000 and $10,000 per individual.
Maryland PIP only pays 85% of lost wages.
Medical bills submitted are reviewed for reasonableness, the full amount is not automatically paid.
PIP is an inexpensive component of a car insurance policy and therefore it should never be waived.
PIP coverage can be denied if claims are not properly and timely filed with your insurance company. Contact your insurance company immediately after a car accident and request that they send to you the PIP forms.