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Calculating pip insurance benefits and deductibles
When a claim is filed, if you have a PIP deductible, your insurance company will subtract it from the amount of your claim. The method used in calculating your benefit is shown in the examples below. In the following example your medical bills totaled $16,000. and your PIP deductible is $1,000. The deductible is subtracted from your medical bills, leaving a balance of $15,000. Eighty percent of $15,000 is $12,000. Therefore, since the limit of PIP is less than $12,000 your insurance company will pay the full limit of $10,000 to your medical providers. See the calculations below:
  $16,000 (the amount owed in medical bills)
-$1,000 (subtracted deductible amount)
$15,000
x .80 (80 percent available benefit offered by PIP)
$12,000
$10,000 (amount company will pay)
You are responsible for the remaining $6,000.
In the following example, your medical bills totaled $12,000 and your deductible is $1,000. The deductible is subtracted from the medical bills, leaving a balance of $11,000. Eighty percent of $11,000 is $8,800. Therefore, the insurance company will pay $8,800 to your medical providers.
  $12,000 (the amount owed in medical bills)
-$1,000 (subtracted deductible amount)
$11,000
x.80 (80 percent available benefit offered by PIP)
$8,800 (amount company will pay)
You are responsible for the remaining $3,200.
 

POLICIES WITH NO DEDUCTIBLES
If your policy does not have a PIP deductible, it does not matter when it was issued or renewed because the calculation is straightforward. For example, if you owe $10,000 in medical bills, the available PIP benefit will be 80 percent of those costs, or $8,000. You will be responsible for the remaining $2,000. See the calculations below:
  $10,000 (amount owed in medical bills)
x .8 (80% available benefit offered by PIP)
$8,000 (amount company will pay)
You are responsible for the remaining $2,000.
 

EXCLUSION OF DISABILITY BENEFITS
Disability benefits (loss of wages) are considered an optional exclusion in PIP. Exclusions are provisions that deny coverage for certain losses, persons or property, and may help you lower your premiums. However, you should carefully consider all your options before electing this or any other exclusion of benefits. It is advisable that if you or your dependents who live with you are employed, you may want to keep the disability benefits, since lost wages will not be payable in the event of an accident.