Personal Injury Protection (PIP)
What is PIP?
Personal Injury Protection, known as PIP, is insurance that provides medical coverage and reimbursement of lost wages to people involved in automobile accidents. This coverage is no fault, which means that benefits are available even to those who may have caused the accident. It typically provides benefits up to $2,500, but some policies have as much as $10,000 in PIP coverage.
When is PIP available?
PIP benefits are available to anyone involved in an automobile collision except in certain circumstances, including:
- Taxicab and Bus accidents: taxis and buses are not required to carry PIP.
- State vehicles: vehicles owned or operated by the State of Maryland are not required to carry PIP.
- Waiver: an insured may waive PIP coverage by following a very specific procedure that informs them, among other things, of the cost of PIP and the effect of a waiver.
- Intentional injury: if a driver intentionally causes a collision, PIP is unavailable.
- Crimes: if an insured has stolen a vehicle, is committing a felony, or fleeing the police, PIP is unavailable.
There is still some question as to whether political subdivisions (like Baltimore City) are required to provide PIP.
What will PIP pay for?
PIP pays for reasonable and necessary expenses from motor vehicle accidents for medical, dental, funeral and nursing services. Additionally, it will pay for the cost of household services and 85% of lost income. Importantly, PIP only pays for expenses/lost income incurred within three years of the collision.
How do I apply for PIP?
In order to apply for PIP, you or your attorney must do so within one year of the date of the automobile accident. Each insurance company has a specific protocol to obtain PIP benefits. Some insurance companies require completion of a unique application.
Will my attorney charge to get PIP?
Ordinarily, lawyers are not allowed to charge clients a contingency fee (a fee based on a percentage of the recovery) for recovery of PIP because in Maryland it is usually unethical. There is an exception where PIP collection is not routine, for example, where there is a genuine dispute over the scope of insurance coverage, or where multiple insurance companies argue over which insurance company is responsible. Attorneys may charge a nominal fee for collection of PIP. For more on these rules, see Maryland Ethics Opinions 92-31, 76-1, and 77-6.
At Plaxen & Adler, you will not pay a fee for processing your routine PIP application.
Will my insurance rates go up when I use PIP?
No. If you use PIP benefits available from your own policy, your insurance rates will not increase. Also, if you receive PIP benefits from another person’s policy, that person’s insurance rates will not go up.
I don’t have automobile insurance. Am I entitled to PIP?
Maybe. PIP coverage is often available if:
- You are a family member and live with someone who has PIP coverage
- You were a passenger in a car involved in an automobile accident
- You were a pedestrian hit by a car covered by PIP
Determining whether PIP is available can oftentimes be difficult. At Plaxen & Adler, our Maryland injury attorneys are experienced at investigating the numerous possible sources of PIP coverage to get clients the best possible result.
Where can I find Maryland rules on PIP?
In Maryland, the rules on PIP can be found in MD. CODE ANN., INSURANCE §§ 19-501, 19-505, 19-506, 19-507, 19-508 and 19-513. Importantly, these provisions are interpreted in appellate court decisions.
If you were involved in a Maryland automobile accident or have questions about Personal Injury Protection, call Plaxen & Adler at 443.472.4864 or contact us online today.
