Personal Insurance Protection is often called PIP in the insurance industry. It is part of an auto policy that pays for medical and rehabilitation bills - and in some instance, loss of wages and other related costs - in the event you or others in your car are hurt in a car accident, regardless of who is at fault.

RELATED: what to do following a car accident

While many states make the coverage an optional choice for drivers, states such as DC, FL, HI, KS, MA, MN, NJ, NY, ND, PA and UT mandate minimum PIP coverage, also known as ‘no-fault insurance’.

The insurance professionals underscore the importance of PIP as a coverage that is more comprehensive than other forms of medical insurance.  

How Much PIP Do You Need?

Prime Insurance always recommends auto insurance clients get at least $250,000 in protective PIP coverage. That’s more PIP coverage than the amount required by any state law.

The following recent episode clearly defines why.  

An auto client was not happy about the premium increase that would occur if he followed our directive in raising his PIP coverage to 250K. As a result, he opted to remain with his current $15K coverage.

Unfortunately the man got in an auto accident, resulting in a complete transformation in his attitude about the amount necessary for PIP coverage.

“I was in an accident four weeks ago and just my two days in the hospital was $45,000+," he wrote in his email to Ellen in the Prime Insurance auto department.

For more information about Personal Insurance Protection, the PIP extension of an auto insurance policy, speak with the experienced professionals at Prime Insurance.

PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, THE HARTFORD, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!

Summary: While acquiring adequate PIP coverage to protect you from costs related to an auto accident regardless of who is at fault may result in an increase in auto insurance premium, it may prove the ‘cheaper’ alternative. Prime Insurance explains, using one client’s lesson as an example.