The no-fault auto insurance (accident at no one’s fault) is also known as personal injury protection (PIP) coverage offers the policy holders that at the time of the event (accident) the policy automatically covers the victim’s losses including death related expenses such as funeral and burial expenses. These benefits are paid to family members of the insured regardless of who was at fault in the accident. The additional death benefits offered by the insurers to the family members of the victim in an accident are as follows:
- All accidental death benefits
- Continuation of lost earnings
- Periodic pension payments, if applicable
- Replacement Services
All these benefits might vary from state to state and most of the no fault laws are having a limit on the death benefits. There are also some specific rules that are laid out by the insurers on how to claim the benefits and also stopping them at a particular stage.
Burial & Funeral Expenses
The funeral and the burial benefits are reimbursed at the very normal rate and not at the grand scale. Usually it will be a fixed amount, decided at the time of taking the auto insurance policy. In most states it is a protected benefit like any other benefits such as medical insurance.
Most of the insurers follow the no fault state law, for extending the survivor benefits to the victim’s family. In general it should go the family members of the person who died in the car accident. The benefits will include funeral, burial expenses including the medical expenses.
The other important benefit provided by auto insurance is Pension payment, which is also called as survivor economic benefits. Mostly the survivor economic benefits are paid to replace the payment for real and material goods that the insured would have provided, in case if he or she is not injured/dead in the event of the accident. Basically this pension payment is an alternative arrangement offered by the insurers to the family of the insured to reduce their hardships due to the inability or death of the insured, incase of the accident that had resulted in death or disability.
The other important aspect of death of the insured that is addressed by the insurers is the replacement of services for the household. In case of a loss of an adult, a family would certainly find it difficult to cope with the house hold activities such as lawn mowing, cooking and other household maintenance work. Hence the insurers provide the cost of such replacement services.
In the event of death of a policy owner, the auto insurance benefit normally goes to the dependants, normally the spouse, co-habitants and minor children who are legitimate and adopted children. Some state laws and jurisdiction may treat the illegitimate children as dependants.