As many are aware, sweeping changes to the No-Fault system took effect starting July 1, 2020. In a previous post we discussed the new PIP coverages and what they mean. Remember, PIP benefits cover medical expenses, wage loss, household replacement services, and attendant care, and you are eligible for them regardless of whether you are at fault for the accident. In this post we discuss the importance of bodily injury limits in light of the new law.
Choosing your bodily injury limits is extremely important after the July 1, 2020 changes, because there is now an option to purchase caps on PIP coverage. If an individual caps his or her PIP limits and is then in an accident caused by another driver, he or she may sue that at-fault driver for excess medical expenses, household replacement services, wage loss, and attendant care. You will want to make sure you are adequately covered in the event this happens.
It is also important to know the changes in bodily injury limits, which apply when you are at fault for an accident and are sued. Previously, the minimum was $20,000 per person and $40,000 per accident, with options for higher limits. Under the new law, the standard coverage is $250,000 per person and $500,000 per accident. There is an option to actively sign off and reduce coverage to $50,000 per person and $100,000 per accident, but we strongly recommend against reducing your coverage.
You should carry a minimum of $250,000/$500,000. You never really know when an accident will happen, and under the new law, if you cause an accident that results in death or serious injury, you could be exposed to significant liability for economic damages as well as pain and suffering, or even wrongful death. Auto accidents can cause severe injury and expensive lifelong treatment, so you want enough coverage in case a person with limited PIP coverage sues you for negligence. For any questions, feel free to call or email us and we can advise you on the best option.