PIP stands for "Personal Injury Protection." It is an optional coverage on your motor vehicle insurance policy that covers medical bills, lost wages, and loss of household services regardless  of who is at fault. The minimum PIP limit is $2,500.00 and the premium to add PIP coverage is not expensive. Some people carry $5,000.00 or $10,000.00 in PIP.

PIP used to be mandatory in Maryland. At some point, the legislature decided to make PIP waivable. This means that if you sign a waiver, you can opt out of PIP coverage. In fact, the waiver will extend to anyone in your household who is 16 or older. If you do not sign a waiver, you automatically have PIP coverage. Anyone under 16 cannot waive PIP and can make a claim.

PIP insurance is important particularly for people that do not have health insurance or sick leave. PIP covers medical bills at 100% and will pay your medical bills promptly within 30 days. It covers lost wages at 85%, but there are no taxes deducted from this amount. You will need a lost wage verification letter from your employer and a disability slip from your doctor. 

Even if the accident was not your fault, the other insurance company will not pay your medical bills or lost wages. They will wait until you have finished treatment and then attempt to settle the case. If the case does not settle and ends up in litigation, it may be a long time before you see any money. Many times the hospital will not wait to be paid. Moreover, the other insurance company does not get an offset for any money paid by PIP and you will net more money from your settlement.

Check your policy to see if you carry PIP coverage. If you do not, you should consider adding it.