What does pip stand for in auto insurance?
This abbreviation is used most commonly when describing the amount that you will owe each month for your insurance premium. The number you need to pay each month is the premium amount plus the amount of the deductible. The total amount is called the policy cost. The pip is the portion of the policy cost that is the total of the premium payments and the deductible.
What does pip mean in auto insurance?
PIP stands for Personal Injury Protection. This optional extra on your vehicle insurance policy is designed to pay for medical expenses that are incurred if you are injured in an accident, as well as for other expenses that result from being sick or injured. Depending on your state, you must have PIP coverage to cover some or all of the expense of medical bills.
What does pip cover in auto insurance?
When you purchase auto insurance through an independent agent, you can ask about their pip coverage. PIP or Personal Injury Protection is a mandatory part of your policy that pays for damage or injury to your vehicle if you are unfortunate enough to be involved in an accident. PIP is a minimum mandatory insurance policy required by your state.
What does pip mean in insurance?
PIP (Personal Injury Protection) is a mandatory auto insurance policy that protects against liability in case of an auto accident. The amount of coverage is usually limited. It is not financed by the car's owner. Rather, it is added to the car's cost at the time of purchase. This is different from comprehensive and collision coverage.
What does a pip mean in auto insurance?
A pip is a percentage point. So, if you have a $100,000 policy limit, and your premium is $200, that would mean you have a $200,000 maximum loss for any one accident, with $100,000 of that being the payout. The remaining $100,000 plus any accrued interest would be the part of your policy that you would owe the insurance company for that accident when it is final. The pips are typically expressed in dollars, cents, or percentage
