First, let me define Personal Injury Protection Limits(PIP) - This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident.
This coverage by definintion protects you the policy holder and the passengers of your car. If you and your family members are covered by major medical insurance you may feel comfortable with a PIP limit of $3000 the standard minimal coverage. In Utah PIP coverage is primary, major medical is secondary. If an accident occurs and the injuries to yourself or your family are, for example, $30,000 your PIP coverage will pay the first $3000 and then your major medical insurance will start paying the bills. Remember, your major medical coverage likely has deductibles and co-pays. In this example, you may have higher out-of-pocket because of your major medical co-pays and deductibles.
There are at least two reasons to carry $100,000 PIP limits even if you have good major medical coverage. First, PIP pays 100% of the covered loss. You don't have to pay co-pays or deductibles when PIP covers the loss. Second, there may be times when friends or extented family will ride in your car. You don't always know if the passangers in your car are covered by major medical insurance. Let's say, for example, you drive a group of scouts on activities and some of them are not insured by medical insurance. Should an accident occur a PIP limit of $3,000 will very possibly not be enough to cover all medical bills for all passengers especially when some don't have any major medical (secondary) coverage.
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