PIP Reimbursement and How to Reduce the Insurance Company's Share

Person’s injured in automobile collisions will often receive benefits under the personal injury protection (PIP) portions of their insurance policies. Despite the fact that they have been paid premiums, the insurance companies will oftentimes seek to recoup these payments when the injured person’s personal injury claim settles against the at fault party. This comes as an unwelcome surprise to many personal injury plaintiffs.

Some relief against the insurance company’s efforts to recoup PIP payment comes by way of the “made whole” doctrine. The doctrine provides that if a personal injury plaintiff is not made whole by the amount recovered from the at fault driver, the injured person’s PIP carrier may not recoup PIP payments.

In addition, even where PIP payments can be recouped, they must be reduced by one third to account for the attorney fees associated with the same and by the insurance company’s proportionate share of the costs. This typically produces a reduction of approximately 40 to 45 percent of the amount sought by the insurance company. Without counsel, these reductions cannot be obtained.

You should contact a personal injury attorney for answers about these or other issues.