Why Skipping PIP Coverage can be Costly

Skipping PIP coverage can cause unexpected bills.

It is really easy to buy car insurance online these days. The simplicity to click through options quickly to save a little money, you know save 15% or more. But there is one box many people skip, Personal Injury Protection (PIP) coverage. Most people don’t know the benefits of PIP and click the box declining coverage.

In Washington State, PIP has to be offered, a minimum of $10k (I carry $35k-for about $14/mo) but you can choose to decline it by signing a waiver. The problem is, a lot of people sign that waiver without really understanding what it means.

What Is PIP Coverage and Why It Matters

• It pays your medical providers directly.

• You don’t have to wait for insurance companies to argue over fault.

• You don’t have to pay out-of-pocket first and hope for reimbursement later.

• It covers things like lost income and essential services (house cleaning, yardwork)

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It’s one of the fastest, most stress-free ways to get care after an accident.

What Happens If You Don’t Have PIP?

If you declined PIP coverage, medical care falls under what’s called third-party billing. Here’s where things get complicated:

• Your relationship is with the at-fault driver and their insurance company.

• Your healthcare provider (like me) has no direct relationship with the at-fault driver’s insurance.

• That means the insurance company won’t pay me directly for your care — you are responsible for paying me.

  
  

Unfortunately, many providers — myself included — have had cases where patients were unable or unwilling to pay once their third-party case settled. Because of this, most healthcare providers do not accept third-party billing as a form of payment.

The Bottom Line

Declining PIP might lower your insurance premium a little (less than $20/month), but the risk and stress it adds after a crash is rarely worth it. PIP ensures you can get the care you need without worrying about how it gets paid.

If you aren’t sure if you have PIP coverage, now is a good time to check your policy — before you need it.