A Small Waiver with Big Consequences
When buying car insurance online, many people unknowingly waive Personal Injury Protection (PIP) to save just a few dollars. This decision, often made without proper explanation, can cost you thousands in lost coverage after an accident.
What Is Personal Injury Protection?
PIP is a no-fault benefit that covers medical bills and lost wages, regardless of who caused the accident. In Maryland, the baseline coverage is $2,500 per person per accident, and the cost is often under $20 every six months. Using it does not raise your premiums, and insurers can’t drop you for filing a PIP claim.
What Are You Really Saving?
In one real-life example, the full PIP premium was $18 per six months, while the waived version cost $15. That’s a $3 savings in exchange for losing $2,500 in coverage per person. At that rate, you’d need to go over 400 years accident-free to come out ahead financially.
Waiver Pitfalls You Might Not Notice
Waiving PIP only applies to the policyholder, household members over 16, and listed drivers—not passengers or non-household members. So even if you waive PIP, your passengers may still receive coverage, while you and your family are left unprotected. That $3 “savings” could leave you footing a big bill.
Don’t Make This $3 Mistake
Before you check that waiver box, take a closer look at your auto policy. If you’re unsure, call (410) 885-6200 or visit bowerslawmd.com to make sure you’re not paying to give up valuable protection.
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