What does basic and additional reparation benefits coverage do?

Basic reparations benefits (BRP or PIP) is a type of personal injury protection insurance that will cover medical and other economic losses suffered as a result of an auto accident up to the selected limit amount.

Policy terms vary but, in general, BRP includes:

  • Medical expenses – May include necessary and reasonable doctor and hospital visits, nursing and rehabilitation.
  • Loss of income – Has a maximum payment listed on your policy (typically around $200 per week).
  • Loss of essential services (also referred to as replacement services) – You can receive benefits if you need help performing household or other tasks due to your injury.

In some states, additional reparations benefit coverage is available to extend additional benefits. Additional reparations benefit coverage is usually primary over any health Insurance. You cannot carry basic reparations benefits if you already have medical payments as part of your policy. Is basic and additional reparation benefits coverage mandatory? This coverage is optional.

What happens if I don’t have basic and additional reparation benefits coverage?

If you choose to go without basic or additional reparation benefits coverage, then to have your medical expenses paid for when you are at fault in an accident or the at-fault party cannot cover your injuries, you will need to have coverage such as medical payments on your policy or you may end up paying out-of-pocket for your medical bills.

If you have adequate health insurance, basic reparations benefits may be unnecessary. 

— Michelle Megna contributed to this story.

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Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.