Imagine that I am making you a simple offer, and you must choose one of these options:
A) Give me $1.00 today, and each year after this one, and if you ever get in an accident I’ll give you $100. I’ll also give $100 to anyone else in your car. I don’t care who is at fault for the accident, I’ll give you the $100 because you got into an accident.
B) Give me forty cents today, and each year after this one, and if you ever get in an accident, too bad.
Which one would you choose? No-brainer, right? Regardless of the amount of money you’re being asked to give me, you’d expect at least something in return for it, right? In fact, as a lawyer, if I charged you money for absolutely no work or no benefit, I’d likely lose my license, or at least be sanctioned by the bar!
The problem is….insurance companies in Maryland are making this deal with drivers in the state ALL THE TIME, and they are getting people to choose option B far too often!
What am I talking about? I’m talking about Personal Injury Protection coverage, or PIP. I’ve talked about PIP countless times in various ways on my site, and to my clients. If you haven’t had a conversation with me about PIP coverage, you’ve probably never been my client.
The photo linked to this article is a scan of a real PIP waiver premium disclosure. This is a general document that is contained within every single auto insurance policy written in the State of Maryland. It discloses the cost of having PIP insurance, and it also discloses the cost to WAIVE that coverage. Yes, the COST to WAIVE the coverage. As you can see from the disclosure, most insurance companies charge a minimum of 40% of the normal premium to have the coverage in order to waive it. Over the years in this business, I have seen this number as high as 60%.
Yes, paying money to waive a coverage. This is an offer that is made in every auto insurance policy. We’re not talking about $100 here, either! The minimum PIP coverage on a policy that doesn’t carry this waiver is $2,500 per person, per accident. They don’t just give you this money for getting in the accident, but it can be used to pay for medical bills, ambulance bills, and time missed from work.
Don’t do it. Don’t save a few dollars on your insurance policy, and lose out on important medical payment or wage payment coverage should you ever be in an accident.
Call us any time to talk about your insurance coverage. We’re not insurance agents, and we cannot sell insurance. What we are, is happy to talk to you about your policy, or a quote from a new insurance company, and let you know what we think about the insurance coverage that is being offered, and if anything is missing that you’d want to have if you were involved in an accident.
Our office always takes calls at 410-885-6200 and is happy and available to discuss auto insurance at absolutely no cost to you!