A PIP waiver occurs when the vehicle you were in at the time of the accident does not have PIP coverage. A PIP waiver can apply even though the vehicle you were in has PIP coverage if you live in a household where anyone in that household that you are related to has a vehicle and has waived PIP coverage, then it is waived for anyone in the household when they are involved in an accident even though that vehicle was not involved in the accident.
For instance, if you are involved in an accident in your friends vehicle that has PIP coverage, but you own a vehicle and you have waived PIP under that particular policy or if you live with your parents and they have waived PIP coverage under their policy, then you would not be able to make a PIP claim under the policy for the vehicle involved in the accident, even though that vehicle had PIP coverage. Anyone else who was in the vehicle at the time of the accident who had not waived PIP coverage anywhere else would be able to make a claim for PIP.
In order for a PIP waiver to be valid, the insurance company must send written notice explaining what PIP is and the cost. A pip waiver must be in writing and on a form approved by the insurance commissioner.When an accident happens and the insurance company can not produce a copy of the signed waiver form, then the insurance company can not prevent you from filing a PIP claim, even if you remember signing one.
The PIP waiver is binding on all named insureds, the listed drivers on the policy, members of the insureds family residing in insureds household and who are sixteen years old or older.
PIP waivers continue even when the policy is renewed.
As a general, PIP waivers should not be signed unless you absolutely cannot afford the coverage. The medical and lost wage coverage provided is helpful if you are involved in an accident and relatively inexpensive.