Although most people have heard of personal injury claims, very few understand what constitutes a personal injury case. Personal injury protection has to do with no-fault insurance which exists in approximately a dozen states throughout the country, including Pennsylvania, New Jersey and New York.
The goal of legislators who enacted the no-fault laws was to streamline insurance claims, especially small ones.
A personal injury protection (PIP) claim is made against your own insurance company for payment of lost wages and medical bills. When you file a claim, the insurance company pays your medical bills and reimburses you for any wages you have lost.
Once you have exceeded the limits on your insurance policy, you are required to pay the medical bills yourself or request that your health insurance begin paying for the treatments. You cannot seek compensation from the negligent driver until your medical bills reach a certain amount or your injuries are severe.
In Pennsylvania, the PIP no-fault limit is $5,000. If you were injured in an accident in Pennsylvania due to another driver’s negligence and incurred $6,000 in medical bills as well as $2,000 in lost earnings. You would submit $5,000 in medical bills to your insurance company who would also pay you $2,000 in lost earnings. The remaining $1,000 could be used to file a claim against the other driver’s insurance company.
While it may seem as if no-fault laws may seem to limit what you can receive as compensation, there are benefits. If you sustain no injuries but total your vehicle, you only have to deal with your insurance company. This means the turnaround time is much faster than if you had to file a lawsuit.
Of course, this does not mean your insurance company will automatically pay your claims as it is not unusual for them to deny claims. This could mean you would need to file legal action to recover your damages, even if the lawsuit is against your own insurance company.
If you have been injured in an accident and you believe the other driver is at fault, contact Lundy Law to learn more about personal injury protection and no-fault laws. You can arrange for an initial consultation by calling 1-800-Lundy Law or completing the simple query form on our website.