There are many reasons why living in Oregon is amazing. From our stunning landscapes, endless outdoor activities, craft beers and wines, and thriving arts scene to our strong communities and caring neighbors. Another great reason is our many consumer-conscious laws. One such law is the mandatory Oregon Personal Injury Protection (PIP) benefits required to be included in every car insurance policy issued in our state. Oregon is only one of a handful of states requiring PIP benefits with every policy.
What is PIP, and why is it beneficial? This article will explain the purpose and benefits behind the Oregon Personal Injury Protection benefits. Let’s start with the purpose. PIP is a no-fault insurance coverage. It is intended to provide basic financial protection for those involved in car accidents regardless of fault.
WHO CAN BENEFIT FROM PIP
The class of people who can benefit from this protection is:
- The named insured in the policy
- Members of the named insured residing in the same household
- Children not related to the named insured by blood, marriage or adoption who are residing in the same household as the named insured and being raised as their own.
- Passengers occupying the named insured motor vehicle.
- Pedestrians struck by the insured motor vehicle.
It is important to note that while Oregon Personal Injury Protection covers most types of passenger vehicles, it does specifically exclude motorcycles and mopeds.
TYPES OF BENEFITS
What types of benefits does PIP offer. Let’s examine the five primary benefits of the Oregon Personal Injury Protection benefits:
- Medical Expenses – PIP covers all reasonable and necessary medical expenses arising from accident injuries. In addition to common medical care such as doctors, physical therapists, and chiropractors, medical care also includes:
- Hospital
- Dental
- Surgical
- Ambulance
- Prosthetics
Generally, most types of conventional medical services reasonably necessary due to the car accident will be covered. Services must be incurred within 2 years from the date of the accident. The legal minimum coverage afforded is $15,000 for these medical services, but an insured may purchase higher limits if available through their insurance company.
- Wage Loss – If the injured person is usually employed or regularly earning an income at the time of the accident and are taken off work by their doctor for at least 14 calendar days, they will be entitled to loss of wages calculated at 70% of their income, but not to exceed $3,000 per month. Income includes salary, wages, tips, commissions, professional fees and profits from an individually owned business or farm. This benefit is available for up to 52 aggregate weeks.
- Household Assistance – If the injured person is not regularly employed, and is considered disabled for 14 calendar days, they are entitled to be reimbursed the expenses reasonably incurred for essential services that were performed by a person who is not related to the injured person or residing in the injured person’s household in lieu of the services the injured person would have performed without income during the period of the person’s disability until the date the person is reasonably able to perform such essential services. This means that if your injury disables you from maintaining your home (dishes, vacuuming, dusting, etc.) and you hire someone to help you with these tasks. This benefit is also available for up to the aggregate of 52 weeks.
- Funeral Expenses – All reasonable and necessary funeral expenses incurred within one year after the date of the person’s injury will be covered up to $5,000.
- Child Care – If the injured person is a parent of a minor child and is required to be hospitalized for a minimum of 24 hours, they are eligible to receive $25 per day for childcare, with payments to begin after the initial 24 hours of hospitalization. Payments will continue, up to a total of $750, until the injured person can go back to work, or if unemployed, be able to perform essential services that the person would have performed without income if the person is not usually employed.
If you are interested, you can read the full PIP statute here.
Every situation is different and whether Oregon Personal Injury Protection benefits apply to your case will depend on the facts of your case. For example, if you are a driver or passenger, PIP is primary. However, if you are a pedestrian struck by a car, the PIP coverage for the car that struck you will be excess to any other insurance benefits you might have (e.g. health insurance). You should always consult with a car accident attorney to identify what insurance benefits may be available to your case.
