What Is A Massachusetts PIP Offset?
Massachusetts follows a no-fault car insurance system. This means if you have a car accident, and even if you are at-fault for causing the accident, you can still have your medical bills paid through Personal Injury Protection (PIP).
That means your car insurance company (or the vehicle you were a passenger in at the time of the accident, or if you were a pedestrian struck by a car), will pay your reasonable and necessary medical bills stemming from the car accident.
If you were not at fault for the accident, and you make a claim against the other driver’s insurance company, that insurance company is entitled to a PIP offset.
That means that car insurance company is entitled to an offset to the extent your car insurance company paid your medical bills out of PIP. Accordingly, the bodily injury settlement offer will be reduced. As an example, if your medical bills stemming from the car accident are $5,000, and the total settlement value of your case is $15,000, then you will be offered $10,000. That is because the at-fault driver’s insurance company must pay that $5000 to your car insurance company. This is referred to as a PIP offset.
This policy is in place because you can’t have your medical bills paid by your car insurance company, and then be paid directly by the at-fault insurance company for these bills. That basically prevents ‘double-dipping.’
Boston Car Accident Attorney
No matter what type of Massachusetts car accident you had, I encourage you to read our free guide, The Truth About Massachusetts Auto Accidents. Read this guide before filling out any insurance company paperwork or hiring an attorney.