In states with no-fault accident laws, like New Jersey and Pennsylvania, a portion of your automobile insurance coverage known as Personal Injury Protection (PIP) provides coverage for accident-related medical expenses, regardless of fault. However, if you suffered an accident while driving someone else’s vehicle, you may wonder which policy covers you. Yours? The vehicle owner’s? Neither?
There’s a specific order of which policy covers your medical expenses, beginning with yours.
The Order of PIP Responsibility
If you suffer injuries while driving another person’s vehicle, your auto insurance policy is the party responsible for paying your medical expenses. That’s why it’s important to purchase enough PIP coverage to protect yourself. No matter how much coverage the owner of the vehicle has, the PIP coverage limit on your personal auto insurance policy is the only number that matters.
Suppose you don’t have an auto insurance policy. If you don’t own your own vehicle and thus have no personal auto insurance coverage, any relevant household auto insurance policy is next in line to cover your medical bills. The policy must belong to a “resident relative” – a family member who lives in the same household as you.
Finally, if no one in the household has an auto insurance policy, or if the residents of your household are not considered relatives, payment responsibility falls to the auto insurance policy covering the vehicle you were driving at the time of the accident. The car owner’s policy will provide your medical benefits in this situation, and your coverage will be subject to their PIP coverage limits.
What If You’re Still Not Covered?
When you suffer injuries while driving another person’s vehicle and have no personal or household insurance policy, your coverage options are beyond your control. If the person who lent you the car failed to maintain auto insurance coverage on that vehicle, you might find yourself without coverage. It’s not your fault – but it is your problem.
In this uncommon but possible case, you may be able to access benefits through a state-based fund like the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA). NJPLIGA helps policyholders whose insurance carriers have become insolvent, or gone out of business, as well as accident victims like you who find themselves without coverage through no fault of their own.
