dcsimg
Call Us Toll Free: 1-855-430-7753

Q&A

See if your question's been answered
Looking for more answers? Find advice to
commonly asked questions from our team
of insurance experts.

Q

If I choose Medical Only Health Primary I don't exactly understand what I am paying for (within the car insurance). Doesn't this option mean that my health insurance covers my losses? So what am I paying a premium for on the car insurance policy exactly? With this option does the car insurance coverage kick in after the health insurance? So confused.


A

New Jersey's no-fault (personal injury protection or PIP) choices are unique and can be a bit confusing at first.

In New Jersey, you have to choose a personal injury protection plan as part of your auto insurance policy. If you're insuring multiple cars, the coverage you select will apply to each car.

PIP covers your reasonable expenses if you or your passengers are injured in an auto accident -- regardless of fault. You may choose from four types of PIP coverage in New Jersey. When you get a quote at CarInsurance.com you can click on any coverage package and click on the PIP options to learn. It will include this information and you can see those choices as noted on the PIP area of our coverage definitions page:

  1. Full PIP Primary — acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses.
  2. Full PIP Health Primary — should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses. Please note: Full PIP Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of the military. In addition, some health insurers do not cover injuries related to car accidents. If you are unsure of what your health insurance covers, you should select Full PIP Primary or Medical Only PIP Primary.
  3. Medical Only PIP Primary — acts as the primary coverage for injuries sustained by you or your passengers in an auto accident.
  4. Medical Only Health Primary — should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. Please note: Medical Only Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of the military. In addition, some health insurers do not cover injuries related to car accidents. If you'ree unsure of what your health insurance covers, you should select Full PIP Primary or Medical Only PIP Primary.

All four choices include medical coverage, as either primary (options 1 and 2) or secondary (options 3 and 4) coverage. Medical expenses may include medical and surgical treatment; dental and optometric treatment; ambulance and nursing services; necessary medications, medical supplies, and prosthetic devices.

With Options 1 and 2 you get the extra coverages such as income continuation which means if a covered individual is unable to work, PIP will help pay for income compensation.

Also, funeral expenses are available so that if a covered individual dies from accident related injuries, PIP will pay a maximum amount (as listed in your policy) towards funeral expenses. Death benefits paid to the insured's beneficiary of a stated amount in your policy if a covered individual dies from accident-related injuries.

And also essential service expenses may be paid out. This coverage is if you or your passengers need help performing household or other tasks due to accident-related injuries, PIP helps pay for such substitute services. Payments are limited to per person amount (listed in your policy) and then per day for up to a maximum limit.

With Medical Only Health Primary you don't have these extra coverages, as listed above, like you would with options 1 or 2. Before choosing Medical Only Health Primary you first need to make sure your health insurance would cover injuries you sustained in an auto accident. If it did and you choose Medical Only Health Primary than you would get coverage from your auto insurance's PIP as secondary coverage if needed only after your health insurance was used as primary coverage. So you are paying as part of your car insurance premium for this lower type of PIP coverage.

Cost savings with PIP can also be achieved in New Jersey by using your own health insurance as a primary source of coverage in the case of injury related to an auto accident. Before selecting this option, you need to find out if your health insurance will cover auto accident injuries and how much coverage is provided. Medicare and Medicaid do not offer the Health Care Primary option, but may provide coverage on a secondary basis, such as when the costs of your care exceed the PIP limits in your auto policy.

PIP is available in many states and each state deals with the combined or overlapping of health insurance and car insurance coverage issue in different ways.

For example, in some states that require PIP you can select a very high deductible so you aren't buying coverage that may be covered by your primary health insurance provider. Even with this lower car insurance premium option, you are still buying a portion/type of health insurance through your car insurance provider. Since a state requires it, you can choose Med Only Health Primary option to mitigate that issue.

Get started with low cost car insurance quotes for New Jersey here.


Categories:

Add Comment

Leave a Comment
 
 
 
0 Responses to "If I choose Medical Only Health Primary I don't exactly understand what I am paying for (within the car insurance). Doesn't this option mean that my health insurance covers my losses? So what am I paying a premium for on the car insurance policy exactly? With this option does the car insurance coverage kick in after the health insurance? So confused."