I just found the time bomb in my policy, and I’m hopeful that this warning will inspire you to check your own policy to see if you’re in the same boat before something bad happens. Massachusetts enacted no-fault personal injury law several years ago – all drivers must carry personal injury protection for themselves and family members, and this coverage is billed first in any accident, regardless of who is at fault. I was not aware of this when I obtained my current policy from Progressive back in 2008, and I took their recommended coverage, which included an $8,000 deductible in the PIP section. For just $22.00 per year in additional premium, I could have had a $100 deductible, but that was never explained to me. Progressive doesn’t offer PIP coverage with no deductible.
Fast-forward to this past Labor Day weekend. After spending the day Sunday in Connecticut seeing my family and celebrating several birthdays, an anniversary, and Labor Day, my daughter, her boyfriend and I headed home. Most accidents occur within 5 miles of home, right? After a 160 mile round trip, I was heading south on Rt 140 in Milford about 1/4 mile from my house, when I signaled to turn left onto Reagan Road to get into my neighborhood. Several cars were heading north, so I stopped to wait – the guy behind me also stopped, but the guy behind him? FAIL! Screeching tires, the sound of a crash, then another crash and impact.
He had slammed into the car behind me, which propelled that car into my truck. Traffic cleared on the northbound side, so I completed my turn and parked the truck on the roadside. The driver of the car behind me pulled over to the side of the southbound lane on Rt 140. The driver who caused the accident decided not to stick around and accept responsibility – he fled the scene, running the next two red lights to get away. The car that was behind him gave chase, trying to get his plate number, but they didn’t want to run any lights so they came back to the scene to see if we were ok. By that time, I had called the Milford PD – the driver of the second car had gotten the plate number of the hit-and-run driver, and the police tracked him down later that night.
My truck was drivable, the bumper is twisted and smashed in, but nothing worse. After everything was squared away, I noticed a bit of pain in my lower back, and I decided to visit the ER and get checked. The ER doctor said I likely had a muscle strain, he advised me to take it easy for a few days and offered me a prescription for a muscle relaxer, which I turned down, opting for Ibuprofen for pain management.
Now to the time bomb – I got a call from the medical claims adjuster at Progressive on Tuesday, explaining that Massachusetts had no-fault personal injury law, and that I was on the hook for the ER bill, up to my $8,000 deductible! I have the option of billing my regular medical insurance, but I have deductibles and co-pays there, so I have no idea what I will end up owing for this. My other option is to sue the driver who caused this whole mess – he’s 24 years old, lives at his parent’s house, and this is his second hit-and-run, something tells me those pockets aren’t very deep.
The long and short of this: check your auto insurance policy, and reduce your PIP deductible to the lowest possible amount. Otherwise, you could find yourself in my situation, incurring huge bills due to someone else’s negligence. I learned the hard way – you don’t have to do the same!
You DO have an insurance agent, right?
First – as you say, the PIP deductible is a huge rip-off. It must be offered, but a good agent will warn you EVERY YEAR, and many make you sign a rejection of a zero deductible as well. Same thing with making sure you have a zero glass deductible on Comprehensive.
Next – when a claim is submitted, your agent should always state that PIP coverage should be reserved for personal expenses. That way, your health insurance coverage becomes primary, and PIP can be used to pay those deductibles, or can be used for rent, expenses, etc. should you not have any deductible. KEEP A WRITTEN RECORD OF EVERY PENNY you are spending as a result of the accident, and get receipts whenever possible, up to and including calling your boss to say you won’t be in to work and parking fees for family at the hospital.
It is to be hoped that your fellow accident prticipant has the maximum $100,000 property damage coverage, along with 50/100 liability. In the VERY long run, IF fault is clear-cut, you will be able to subrogate your out of pocket expenses and deductibles against his policy.
Thinking we are a no-fault state is crap. It is the only way to settle a claim, and I assure you that fault is being determined by the companies from Day One.
why it’s their “recommended coverage.”