Reader’s Question:

I am looking to lower my car insurance premiums here in Massachusetts. Can I just go ahead and take out my PIP insurance since I have health coverage?

Holly

Boston, MA

Massachusetts is one of the 12 states in America that has elected to adopt the no-fault act to curtail lengthy court litigations following car accidents to find out which party is responsible and is ultimately accountable for all the damages. Although this law serves to hasten necessary financial assistance for medical care and rehabilitation, it does not mean that the other driver is wholly at fault and the other totally blameless. It just means that an individual has to file claims against his or her own car insurance company for benefits.

The only instance where a driver can sue the other is if the costs incurred exceed the limit of the car insurance policy. The other driver’s insurance company has to cover the remaining amount in this case then. Additionally, a driver can sue another for non-economic damages such as pain and suffering.

In the no-fault State of Massachusetts, all motorists need to purchase the no-fault insurance policy. This actually is the Personal Injury Protection (PIP), which gives monetary assistance to medical treatment for sustained bodily injuries and wages lost. Funeral expenses are also covered. The PIP amount extended to the insured can be up to the amount of $8,000. Those with comprehensive health insurance can only avail of up to $2,000. Any amount remaining shall be paid by the health insurance company.

Remember to read thoroughly the declarations section of your car insurance policy. If it is stated there that there is coordinated or excess medical coverage, then this means that you will have to file the medical payments claim from your health insurance company first.

Tags: auto insurance claims, auto insurance premium, Car Insurance Company, no-fault