When looking at price increases, one of the many causes is the rising healthcare cost. Not only does that affect the insured’s health policy, but also the auto policy premiums. Insured’s in states that have personal injury protection will pay higher premiums than insureds in states that have medical payments only.
For instance, in New Jersey and Oregon, personal injury protection is a mandatory coverage. Personal injury protection (PIP) offers death benefits, funeral benefits and
medical expense. The insured can opt out of PIP for minimal savings if their regular health insurer will provide coverage.
The limitations of these various coverages can range from $15,000 all the way to $250,000.
According to Value Penguin, New Jersey insureds pay an annual average of $1,905 and with an average monthly payment of $159. In Oregon, the annual average premium is $1,333 with a monthly average payment of $111.
Likewise, states where medical payments are offered like Virginia and Ohio, the limit amount can be anywhere from $2,000 to $25,000. This is also optional coverage. The insured can remove the coverage if they provide a statement in writing declining.
Additionally, states like Virginia and Michigan, offer income loss coverage. Of course, if the insured is retired or not working they can remove this also.
When looking at the premiums for these states, they are lower. Value Penguin tells us that Virginia’s annual premium is $1114 and their monthly is $93; Ohio’s yearly premium is $926 and their monthly is $77.
It’s a noticeable difference, but so are the coverage limits. If the insured has a back injury or brain injury those higher limits will certainly come in handy for the years of medical treatment. In some cases, $250,000 may not be enough.
In states like Ohio and Virginia, the right to sue is not limited like it is in New Jersey. Therefore, further benefits are available only with the help of a lawyer.
Going over the coverages and options when it comes to medical and injury protections is necessary. There are several areas where coverage from the regular health insurer may not be able available. These are things the insured needs to understand.
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