The Secret of PIP or Medical Coverage for No Fault States

Remember when I said that PIP is sometimes referred to as NO FAULT COVERAGE? Well, there are some states that are actually NO FAULT STATES. In other words, no matter who is at fault for an accident, your policy pays for you, theirs for them. These states may allow you to carry higher than normal PIP or MEDICAL COVERAGE limits because the policies are set up a little differently. I will go over NO FAULT STATES in more detail in another Post.

Collision Coverage COLLISION. Every insurance agents favorite word…NOT! This coverage is one of the most widely used, yet most misunderstood of the policy. Let’s start with the simple definition first, then dig a little deeper…


A COLLISION is simply what it sounds like…it occurs when the car HITS something. Rule of thumb, there pretty much has to be a driver in the car when a collision occurs, but I have heard of a few instances where someone’s emergency brake failed,the car rolled down a hill, and BAM! For this coverage to be enacted, the ensuing damage has to be YOUR fault, and it covers YOUR car only. Remember, the damage to the other car will be paid by the PROPERTY DAMAGE portion of your LIABILITY.

C ollisions happen every day, and chances are that you have had at least a minor one at some point yourself. People hit all kinds of stuff, mailboxes, shopping carts, brick walls, restaurants, and yes, even other cars. REMEMBER THIS: If your car HITS it, it is probably a collision. This fact has to be stressed because so many people want to blame other things as the cause for collisions the insurance company will deem YOUR fault. This is important because it can make the difference to some between turning in a claim, and just paying for it out of pocket.

Here are a few examples I have come across in my years of taking claims:

  • 1. “I slid on the ice, I could not control my car and hit the guardrail.” COLLISION
  • 2. “Another car cut me off, I had to swerve and hit a sign.” COLLSION
  • 3. “Something fell of the truck in front of me while I was on the highway, and I could not avoid it and I ran over it causing damage.” COLLISION(this scenario is paid under collision a lot of times, but it IS worth fighting for, some claims adjustors will see your side and will not fault you for an incident such as this. Rare, but it does happen)

Those are just a FEW of the multitude of ways we can have collisions, but I wanted to point these few out so you remember, if there is NO ONE else involved but you, and your car was moving when damage occurred, it is probably a collision. One very important tip to remember when looking at collision coverage is the affect it can have on your rates. If you have a collision, it is considered an AT FAULT incident, and your rates can go up…even after only ONE claim. If you have several collisions, you can be cancelled, and getting insurance elsewhere may be MUCH higher. CALM DOWN…I know what you’re thinking, but have no fear.


I have some great tips on choosing this coverage, how to save money, and whether or not you should turn in certain claims. Sounds cool? Great, that is coming up in the sections on DEDUCTIBLES and CLAIMS. Now that we have an understanding of collision, what about everything OTHER than collision?

Photo credit/Flickr/ret0dd

This entry was posted on Saturday, July 25th, 2009 at 6:57 am and is filed under article. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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