Personal Injury Protection (PIP) insurance, sometimes known as “no-fault insurance,” covers a person’s medical bills and rehabilitation costs in case they get injured in a car accident. This type of insurance applies regardless of who is at fault in the accident and even covers situations where the insurance holder is traveling in someone else’s car and is hit by another vehicle. However, in Iowa, carrying PIP insurance is not mandatory because the state is not considered a “no-fault” state.
What is the Alternative to PIP in Iowa?
In Iowa, instead of PIP insurance, insurance providers offer Medical Payments coverage (known as MedPay), which covers hospital costs associated with a car accident. Both MedPay and PIP insurance cover medical expenses even if the insurance holder is at fault in an accident. However, MedPay provides less coverage than PIP, as it does not cover lost wages or help with household chores that the injured person cannot perform due to their injury.
Why Consider MedPay Instead of PIP?
Although Iowa does not require drivers to have PIP insurance, MedPay can offer additional protection by quickly covering medical bills without the same maximum coverage limits that PIP might have. This can be especially useful for those seeking immediate and straightforward coverage after an accident, regardless of fault.
Car Insurance Requirements in Iowa
Iowa requires all drivers to have liability insurance for bodily injury and property damage with minimum set limits. This insurance covers the medical expenses and property damage of the other driver in case of an accident where the policyholder is partially at fault.
Even though PIP insurance is not mandatory in Iowa, it is advisable to have adequate insurance. This is crucial to ensure coverage in case of an accident, even if the case goes to court.