NJ Deciding On Whether Or Not To Change PIP System

New Jersey is known as the “Garden State”. Now the state is going to make changes to its PIP system and these changes will impact the lives of every driver who gets seriously injured in an automobile accident. PIP stands for personal injury protection and it helps accident victims get money for medical care and services that they require.
Now, victims will be entitled to approximately $15,000 to $250,000. This cap can actually leave drivers in financial turmoil after an accident. The cap that is in place will depend on the car insurance policy that the driver has in place. This means that drivers who have comprehensive or collision insurance coverage will probably have a higher cap than those individuals that have minimum liability coverage only.
Health care costs are very high right now and if an accident victim has a neck or brain injury then they may exceed the PIP cap very quickly. Lawmakers have stated that the caps need to be put in place because of all of the instances of car insurance fraud. Sometimes, PIP patients try to exploit the medical payments and get compensation for services and medical care that they do not need.
The state needs to find ways to limit PIP fraud so that car insurance premiums can go down. Doctors and other medical professionals are against these caps because they feel that it will interfere with the medical care that they can offer their patients. It is important for patients to be able to have the right care so that they can heal and feel better.
Many state legislatures are at a loss as to how they should go about doing this because every automobile accident will have different amounts of medical bills and property damage. This makes it hard to create PIP caps that can easily apply to anyone.
New Jersey lawmakers should consider meeting with medical professionals and car insurance executives to try and create a happy medium so that insurance companies and accident victims are protected. The economy has taken a huge hit and this has caused many states to focus on addressing their PIP system and implementing caps on medical payments and property damage liabilities.
Drivers need to make sure that they review the PIP coverage that their auto insurance policy has in place. Knowledge is power because not having enough coverage in place could cause New Jersey drivers a great deal of money after they have become involved in an accident.