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PIP insurance question and coverage!

by Linda

My daughter recently was in an accident where it was not her fault and the other party has claimed that it was their fault - plus there were witnesses that filed reports with the police and the other party received a ticket.

Their insurance company told us that we should file a claim with our insurance company regarding PIP insurance (she was injured and will have hospital bills).

They said this will help them recover some of their costs for the medical payments.

Our insurance company told us to deal directly with the other insurance company on the claims. Why would their insurance company want us to file with our insurance company? If we do, won't this be a mark on our insurance and raise our rates? What would be your recommendation?


Hello Linda,

Well, usually you do submit your medical bills to your own insurance company. They pay them under the Personal Injury Protection (PIP coverage), and they will get reimbursed when by the insurance company of the person that hit your daughter only when you settle for pain and suffering.

The reason the system works this way is because the other insurance company will only pay when they have a settlement release from you or your daughter (you if she is under 18). This is the exchange, you give them a settlement release, they pay your medical bills and your pain and suffering. If you do not settle, they will not pay.

The issue is what happens to the medical bills until you settle. They become due as your daughter visits the doctor. The only solution is to have your PIP carrier pay and then get reimburse when you settle.

Will this affect your rates? Some insurance companies will ding you some will not. Some will say that they do not, but at the end of the day, they will.

The best thing to do here is to get a quote with several carriers (while the claim is pending), once you settle get another quote (from the same place/places) if you see a discrepancy, your rates were unfairly affected. With the quotes, you can call your agent to fix the “problem.”

A good place to get several quotes in one place is

For more information about PIP, visit:

Good Luck

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