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Will my or my family member’s insurance rates go up if I receive PIP benefits?

Will-my-or-my-family-member’s-insurance-rates-go-up-if-I-receive-PIP-benefitsPersonal Injury Protection, also known as PIP or MEDEX, pays individual benefits for any injuries. A basic personal injury insurance policy is meant to cover for any injuries that you the insured person sustains on a first-party basis without any regard on who is at fault. PIP covers for the loss of wages and any medical bills you may have incurred in case you are a victim of a car accident. Although PIP insurance cover is not legally required in all states, it does not cost much. Despite the affordability of this invaluable auto accident cover, many people don’t purchase this policy. Others who have it refuse to use it because they are afraid that their insurance premiums will increase.

Q: What is No Fault PIP Cover?

A: Most PIP insurance packages are offered on a no fault basis. No fault means that you will get compensated whether you were the one at fault or not. Most people confuse the no fault PIP cover with the no fault dynamics that are used in personal car insurance policies. In several auto insurance companies, the term no fault is used to describe what may happen after a claim and how it will affect your insurance premium. In such instances when the insurance companies use the term no fault, it means that your insurance rates will remain the same. However, this is not often the case in PIP covers.

Q: Who are the People Covered by PIP?

  • The policyholder
  • Relatives of the policy holder
  • Any passengers who are involved in a car accident and they don’t have their own PIP coverage
  • Authorized drivers of your insured car
  • Family members of the policyholder in case they get injured while in another person’s car.
  • The policyholder and family members in case they are involved in an accident as pedestrians.
  • Choosing The Best Insurance Company

A: All insurance companies operate under different policies, and some companies that you work with may make their decisions on a case-by-case basis. However, any fast or hard rule on what may happen to your insurance premiums after making a PIP claim can most likely fail you. The best decision you can make today is to talk to your current insurance agent and inquire on how they can handle a case if you file for a PIP claim. Your current insurance agent will most likely give you a detailed and honest explanation and help you to make an informed decision.

Q: What are the Technicalities Involved in Most PIP Cases?

A: Because all insurance policies have different policies, it can be difficult to describe how PIP claims are handled. However, the chances of your insurance rates increasing are high after filing for a PIP claim. There are two ways in which your insurance rates can increase. You can note an increase in your insurance premiums only or you can see an increase in both your pip and car insurance premiums. Several insurance firms combine the two insurance covers together and it can be difficult to note the difference between the two. Remember that insurance companies will constantly assess your risk profile before they set your rates. This means that when you get involved in a car accident, they will re-assess the risks that you present to the insurance company. This can result to an increase in your monthly premiums and lead to a higher deductible.

You may get worried on whether to use your PIP cover due to the likelihood of your rates increasing. If the claim can pay a significant amount of money then you can file for a claim. At other times, filing for a claim is not worth because the rates can increase in the long run. Other people choose not to file for PIP benefits after an accident even when they stand a chance to receive double payment for their lost wages and injuries.

Q: Who to Contact?

A: After an accident, the last thing on your mind is contacting an attorney. However, after a car wreck, getting in touch with a lawyer is necessary because dealing with insurance companies directly can sometimes be difficult. A lawyer will guide you all the way and help you make the best decision that can help you to protect your financial future. Your lawyer will help you by advising you on the results of using your PIP coverage, and other options that you can use.


The Lamber Goodnow legal team, together with its partner personal injury law firms in Chicago, are experienced in PIP matters. Our Chicago personal injury lawyers never charge a fee, unless we win your case. Get a risk free consultation today.

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