Will My Insurance Costs Increase if I Make a PIP claim?

By: Kristen Turner

PIP, which stands for personal injury protection, is an extra coverage that people elect and pay for in their insurance premiums.   PIP is a no-fault coverage that helps pay your medical bills and lost wages regardless of fault.   When clients hire us, we explain the PIP process and how it works.

The first question many clients ask us is “will it increase my premiums?”  Generally, using PIP should not increase your insurance cost because it is a no-fault coverage that you pay extra for in your premiums. However, in practical application, we have sometimes seen insurance companies raise their insured’s insurance premiums when a PIP claim is asserted.

So that our clients are not blindsided by insurance companies increasing their insurance premiums as a result of a PIP claim being asserted, we frequently advise our clients to consult with their insurance agent to inquire if their insurance company will increase their premiums if a PIP claim is asserted. However, generally speaking, we seldom see our client’s rates being raised as a result of making this claim.