Could you explain how to calculcate the answer to this question:
Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son and his and son’s friend, Joe, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Joe suffers $5,000 in injuries, and Jim suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries?
Hi Sara,
Only Pete and his son are covered under Pete's PIP. This question may seem confusing because it leaves out the name of Pete's son (Jim).
Pete and Pete's sons injuries are covered for 80%: Pete - $8000 X 80% = $6400, and Pete's son (Jim) $6000 X 80% = $4800.
$6400 + $4800 = $11,200
I hope this helps. Please let me know if you have other questions.
Jan
I believe that I read somewhere that benefits are provided to people who are riding in your car also. Why is Joe, the friend, excluded from receiving benefits?
Is he expected to receive benefits from his own family's policy?
Sara
PIP coverage follows the individual and not the vehicle. All other coverage follows the vehicle. Joe would receive PIP benefits from his family's policy if he is in Florida. However, since they are out of the state in Texas, Joe would not receive PIP benefits. His injuries would be covered under the liability of the at-fault party.
Jan
This was very helpful. Thanks Sara and Jan