What is Personal Injury Protection (PIP) Insurance & How It Applies to Your Car Accident Case

When you’ve been involved in a car accident in Oregon, one type of insurance that almost always comes into play right away is personal injury protection (PIP). Even though Oregon follows an at-fault system for car crashes, PIP is a mandatory part of most car insurance policies. It doesn’t matter who caused the accident; PIP covers immediate medical costs and other expenses after a crash. Having a basic understanding of PIP can make the process feel less overwhelming.

What is PIP, and how does it work in Oregon?

Personal Injury Protection, or PIP, is insurance included in most auto policies in Oregon. After a car crash, PIP helps pay for certain expenses, no matter who caused the accident.

PIP Limits in Oregon

By law, Oregon drivers must have at least $15,000 PIP coverage. This amount covers each person injured in a crash and is available for certain expenses you incur within two years of the accident. It’s often possible to purchase higher limits if you want stronger protection.

Breakdown of what PIP covers

Here’s an overview of what PIP covers after an accident in Oregon:

Medical bills for accident-related treatment

PIP pays for necessary costs like doctor visits, ambulance rides, hospital stays, surgery, dental care, and prosthetic devices if prescribed. The minimum required coverage pays for these services until it’s used up or two years have passed.

Partial wage replacement

If you’re unable to work due to crash injuries, PIP can help with loss of income. If crash‑related disability continues for at least 14 days, PIP pays 70% of your loss of income from work (including wages, tips, commissions, and self‑employment profits). The cap is $3,000 per month, with a maximum aggregate of 52 weeks of wage‑loss benefits during your crash‑related disability.

Essential services

Sometimes, a person hurt in a car crash doesn’t lose regular job income because they work at home or do not have a paying job outside the home. However, injuries might stop them from handling necessary household duties, such as cleaning, cooking, or shopping.

Oregon’s PIP law recognizes this. When an injured person is disabled for at least 14 days after the wreck, PIP can pay for someone to help with daily living tasks. This could include things like basic housework or needed errands. Someone you already live with, or a relative, can’t be paid through this program. The policy pays up to $30 per day, for a total of up to 52 weeks if necessary.

Child care assistance

If the injured person is a parent of a minor child and is hospitalized at least 24 hours, PIP pays $25/day for child care (up to $750), starting after the initial 24 hours, while the parent remains unable to work or perform essential services.

Funeral expenses

If someone is hurt in an accident and passes away, their family can be reimbursed for funeral expenses that are reasonable and necessary, up to $5,000, as long as those costs are paid within one year after the injury happened.

Understanding how your PIP benefits work can relieve some of the financial stress that follows a crash and let you focus on your recovery.

Can you still file a lawsuit against the at-fault party if you claim PIP coverage?

Using your PIP does not stop you from going after the person responsible for hurting you. When another driver (or other party) is at-fault, you can ask their insurance or argue in court that they owe you for harm PIP does not cover, such as:

• Any pain and suffering you go through as a result of the accident
• Medical care you’ll need down the road that wasn’t covered by PIP
• All of the wages you lose if you can’t work for days, weeks, months, or even years
• The money you’d have made in the future, especially if you can’t return to your old job

Basically, any losses and damages you experience because of an accident can be recovered through a lawsuit. This is good news because the PIP benefits can be helpful, but are quite limited.

No double recovery

You’re not allowed to “double-dip,” meaning you can’t be paid twice for the same bills. If your case against the at-fault driver gets you a settlement (or verdict) for your medical costs, but PIP already paid for those, your insurer’s legal right kicks in.

For example, let’s say you needed surgery after an accident, and your PIP policy paid $10,000 for the hospital and doctor bills. Later, you file a lawsuit against the other driver and recover money to cover those same medical expenses. The insurance company that paid your PIP has the right to get back that $10,000 from your settlement. However, Oregon permits a PIP insurer to assert a lien and seek reimbursement only after you are fully compensated for your injuries, and any reimbursement must come solely from amounts exceeding full compensation, with the lien reduced by a proportionate share of your litigation costs and attorney fees.

The importance of working with a personal injury lawyer after an accident

Even if you qualify for PIP benefits after an accident, having a personal injury lawyer on your side can make a real difference. State laws are confusing, insurance companies can be tough to deal with, and you might miss out on money you’re owed if you don’t have someone looking out for you. Here’s how they can assist:

Making sure you get full compensation

After an accident, medical bills add up fast. PIP will cover some of these expenses quickly, but you might need long-term care or experience reduced earning capacity that goes on for years. A lawyer can fight to collect all damages you’re entitled to through PIP as well as a personal injury lawsuit when it makes sense.

Handling insurance companies

Dealing with insurance adjusters means confronting people trained to pay out as little as possible. You might get pressured into accepting a low offer early on. If you have a lawyer, it levels the playing field and makes it less likely that you’re going to get taken advantage of.

Cutting down stress during recovery

Healing from an accident is stressful, especially when you add in piles of paperwork, intimidating phone calls from the insurer, and stacks of medical bills demanding attention. With a lawyer handling the day-to-day details, you have an advocate dealing with these problems for you so you can focus on getting better and rebuilding your life.

No matter how major or minor your accident seems, having a lawyer focused on your personal injury case protects you and your family from unexpected trouble and costs down the line. The legal team at Philbrook Law, Accident and Injury Lawyers, supports clients every step of the way. Contact us today to schedule a free consultation and get the support you deserve.