Q: How does PIP coverage work? Is it required in Oregon?

A: For auto policies in Oregon, it is required. Not for motorcycles though. I do believe there is a way to waive it, but it has to be in writing.

As to how it works, if you are injured in a car accident (or if you are covered under a policy and injured as a pedestrian or bicyclist) then your own insurance pays for your medical treatments up to the limit. The state minimum limit is $15k, but you can buy more.

A: PIP must be included in every auto insurance policy sold in Oregon. The minimum amount must be $15,000.00 per person for medical coverage and covers medical treatment that is both reasonable and related to injuries incurred in a car accident. There is an additional allowance for lost wages once you have been off work for at least 14 days continuously. PIP can be used by you or any passenger in your car if you or your car is involved in a car accident and there are injuries. In some circumstances a Pedestrian or bicyclist can apply for PIP coverage from the insurance of a car that was involved in an accident with them. Anyway, the coverage can be used anytime during the two year period following that accident. One can pay for higher PIP amounts but that generally isn't necessary if you have health insurance. You just use your health insurance if you use up your PIP.

In order to get PIP coverage, you just tell the insurance company you have that you were in an accident and you need to activate your PIP coverage to pay for the medical bills. Some insurance companies will ask you to fill out a PIP application form while others will just tell you to send your medical bills to them. The important thing to keep in mind is that some chiropractors know that your PIP goes up to $15,000 and they will stretch out your treatment until your PIP is gone which may not be the best plan for you if you want to have PIP available to pay for some other type of treatment you might need, so it is really important to budget how your PIP is used and consider what other treatments you may want to investigate before the PIP amount is exhausted. PIP will sometimes pay for treatments that your HMO may not pay for, like massage. Also with PIP you are not limited to doctors that are in your HMO network.