HEALTH CARE PRIMARY — Cost savings can also be achieved by
using your own health insurance as a primary source of coverage in the case
of injury related to an auto accident. Before selecting this option, you should
find out if your health insurance will cover auto accident injuries and how
much coverage is provided. MEDICARE and MEDICAID cannot be used
for the Health Care Primary option.
EXTRA PIP PACKAGE COVERAGE — These are additional benefit
options provided under the STANDARD POLICY.
INCOME CONTINUATION — If you cannot work due to accident-
related injuries, this coverage pays lost wages, less Temporary Disability
Benefits you may receive if your disability prevents you from working, up
to the amount you select.
ESSENTIAL SERVICES — Pays for necessary services that you
normally do yourself, such as cleaning your house, mowing your lawn,
shoveling snow or doing laundry, if you are injured in an auto accident.
DEATH BENEFIT — In the case of death, family members or estates
will receive any benefits not already collected under the income
continuation and essential services coverages.
FUNERAL EXPENSE BENEFIT — Pays for reasonable funeral
expenses up to the limit you select if you die as a result of an auto accident.
7
UNDERSTANDING YOUR POLICY
UNDERSTANDING YOUR OPTIONS
Personal Injury Protection continued
EXAMPLE
Sam and Jane each have an accident that results in $10,000 of
medical expenses. Sam chose the minimum $250 deductible. He pays
the $250 deductible plus $950 (20 percent of the $4,750 that is left
of the first $5,000) and the insurer pays the remaining $8,800). Jane
chose the $2,500 PIP deductible for a 25 percent reduction in the
PIP premium. She pays the first $2,500 as the deductible. She also
pays $500 (20 percent of the $2,500 that is left of the first $5,000)
and the insurer pays the remaining $7,000.