Personal Injury Protection (PIP) insurance is no–fault insurance that allows you to recover certain losses after a collision without having to demonstrate the other party’s negligence.
As a no-fault state, this kind of coverage is mandatory for all insurance policies in Utah. Consult a Salt Lake City car accident lawyer about how to proceed if you’ve been in a crash.
How Utah Personal Injury Protection Insurance Works
Most states use an at-fault insurance system that requires accident victims to establish fault before they can receive a settlement. While the damages in these types of claims can cover a wider variety of losses, these cases require many additional steps and are lengthier by comparison. They also require you to deal with the other driver’s insurance company.
However, since Utah is a no-fault state, it means that all residents must carry personal injury protection as part of their auto insurance policy. Personal injury protection insurance is coverage that allows you to recover compensation by filing a claim with your own insurance. Because demonstrating fault isn’t a requirement, the process for recovering your expenses is more streamlined.
While required, it’s important to know that personal injury protection insurance is just one part of the state’s insurance requirements. Drivers must still maintain liability coverage and meet mandatory coverage amounts set by the state. While not required, drivers may also opt to add comprehensive, collision, and uninsured/underinsured motorist (UM/UIM) coverage to their auto policies.
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PIP Insurance Coverage Requirements
Drivers must maintain minimum coverage to drive within the state, but they may also increase their policy limits to provide better protection in case of an accident. PIP policies must provide at least $3,000 in coverage for medical expenses, up to $250/week or 85% of lost wages, and coverage for funeral and burial expenses, as well as death benefits for heirs, according to Utah Code 31A-22-307.
If an accident occurs, insurance companies generally cover the “reasonable value” of expenses related to the accident. This amount is generally equal to the 75th percentile for services and is based on a relative value study from cities throughout the state. These amounts are updated annually to provide the most accurate values when determining the value of accident settlements.
Failure to meet vehicle insurance requirements in Utah can result in a Class B misdemeanor. Penalties can include fines and a suspended driver’s license. A driver’s license may not be reinstated without the required documentation.
What is Covered By Personal Injury Protection Insurance
While personal injury protection insurance makes it easier to recover your losses by not having to establish fault, the scope of compensation is much more limited than in at-fault states. Insurance companies primarily focus on your economic damages to help you get back on your feet faster. PIP policies generally do not cover property damage and pain and suffering losses.
The compensation you can recover is designed to pay for medical bills, lost wages, and lost household services after an automobile accident. A lawyer can help you determine the overall worth of your case by adding up the value of each eligible loss. Since insurance companies may use tactics to minimize your settlement, our team can help you submit a demand letter to them with the details of your losses.
Several factors can affect how much you can recover from your insurance policy. First, your policy limits dictate the maximum amount of compensation you can recover for an accident. Second, the severity of your injuries and losses can also influence your outcome, as more extensive losses require more compensation. Additionally, shared fault in an accident could also limit your recovery significantly.
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What to Do if Your Utah Personal Injury Protection Insurance Doesn’t Cover All of Your Losses
Some car accidents can be so severe that your PIP insurance doesn’t fully cover the extent of your losses. When this happens, you can sue another driver in a no-fault state like Utah if you meet a certain threshold. If you suffer more than $3,000 in medical expenses, have lost a limb, broken a bone, been impaired, disabled, or disfigured, or have lost a loved one, you may be eligible to file a lawsuit.
When filing a lawsuit against the other driver, you must establish that their negligence caused the accident and the injuries you suffered as a result. This means that you will need to gather and provide evidence of the other driver’s wrongdoing. This includes showing that they were supposed to ensure your safety and caused an accident because they were careless. As such, they are liable for damages.
In a car accident lawsuit, you may also have the opportunity to recover the cost of repairs for your vehicle and personal belongings, as well as compensation for your physical and emotional pain and suffering. You may be able to file this type of claim in addition to your PIP claim, but it’s essential to talk to an experienced lawyer first to understand what implications it may have on your situation.
Statute of Limitations on Car Accident Lawsuits in Utah
If you need to file a lawsuit against the driver who injured you, you must do so within four years of the accident, per Utah Code 78B-2-307.
This time limit is set to ensure that claims are filed as swiftly as possible. If you do not act before the statute of limitations expires, you could lose the opportunity to take legal action and recover losses beyond your personal injury protection policy coverage.
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Discuss Your Case With Siegfried & Jensen Today
Siegfried & Jensen can help answer your questions about PIP insurance and provide recommendations on how to proceed if you’ve been in a car accident in Utah.
We can also guide you through the legal process if you’re also eligible to file a lawsuit against the other driver directly. Schedule a free consultation with our team today so we can walk you through your options for recovery.
Call or text (801) 266-0999 or complete a Free Case Evaluation form