Ron Kramer Law Group

What Benefits Does My Car Insurance Provide Me?

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In Utah, insurance companies are required to provide their own customer, or insured, with certain basic benefits. These are called PIP benefits. PIP stands for “personal injury protection.” They are designed to cover you if you get injured in a motor vehicle crash – even if the crash is your own fault. There are three components to these benefits. They are: (1) $3,000 for medical bills, (2) one year of lost wages (this will be the amount of your actual wages or $250 per week, whichever is more) and (3) household services reimbursement of up to $20 per day.

First, the $3,000 is used to cover medical bills which are directly related to the crash. (Some policies may actually have higher limits, although all must have at least $3,000 available.) This is why after the crash, medical providers will ask you to give them the name of your insurance company and the claim number. They ask for this because they will bill your insurance company directly. Some health insurance companies, such as IHC, will not begin to pay any benefits until they are satisfied that the $3,000 from your insurance is used up. Also, if your insurance company suspects that your treatment is not related to the crash, they might cut off benefits and have you examined by one of their insurance company doctors. You should keep in mind that this coverage is available to you even if you caused the crash to happen.

This is why it is sometimes called “no-fault” coverage. Second, PIP coverage allows for lost wages if you have been released by your doctor from work. Even if you are put on “light duty” and there is no light duty work for you to perform, you are still eligible for this benefit. The benefit, though, is pretty small: a maximum of $250 per week. This is basically $6.25 per hour for 40 weeks. Most Utahns make more than this. Still, as I tell my clients, it’s better than nothing.

Your doctor will need to provide a note that you can submit to your insurance company before they will approve benefits. If your injury is more serious and it’s clear in the records, then those records may also suffice. Finally, if someone is helping you with household tasks following your injury, then they are entitled to be reimbursed up to $20 per day. This would apply, for example, if your spouse is doing the laundry, or mowing the law or cooking the food, where before, you used to do all that. The pay isn’t much, and there is a form from your insurance company that you need to fill out to claim this benefit. But it still is, again, better than nothing. In fact, this benefit is good for up to $600 per month.

Not too bad. And, it can help supplement a wage earner who usually makes more than what his insurance company will cover in lost wages. Of all the three benefits, this one is most likely not to have been offered by the adjuster when they discussed your case with them.

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