What Is PIP (Personal Injury Protection) Insurance?

How PIP Insurance Works

No-fault coverage: Unlike liability insurance, which only pays if you're responsible for an accident, PIP covers you and your passengers regardless of who's at fault. If you're injured in a crash—whether you caused it, someone else caused it, or it's unclear—your PIP coverage pays first.

First-party coverage: PIP is "first-party" insurance, meaning it covers you (the policyholder), your passengers, and sometimes family members, rather than covering damages you cause to others.

Quick payment: Because fault doesn't need to be determined, PIP claims are processed faster than liability claims. You can receive payment for medical bills within days or weeks, not months.

Coordination with health insurance: Depending on your state and policy, PIP may be: • Primary: Pays before your health insurance • Secondary: Pays after health insurance covers what it can • Excess: Covers amounts exceeding health insurance limits

Subrogation rights: In some cases, if another driver was at fault, your insurance company may seek reimbursement from the at-fault driver's insurer after paying your PIP claim.

What Does PIP Cover?

PIP coverage typically includes:

Medical expenses: • Emergency room visits • Hospital stays • Doctor visits and follow-up care • Surgery and medical procedures • X-rays, MRIs, and diagnostic tests • Prescription medications • Dental work if injured in the accident • Chiropractic care and physical therapy • Medical equipment (crutches, wheelchairs, etc.)

Lost wages: If your injuries prevent you from working, PIP replaces a percentage of your lost income (typically 60-80%, up to policy limits). This includes: • Regular salary or wages • Bonuses and commissions • Self-employment income

Rehabilitation costs: • Physical therapy • Occupational therapy • In-home care services • Necessary modifications to your home or vehicle for disability accommodation

Essential services replacement: If you're unable to perform household tasks due to injuries: • Childcare expenses • Housekeeping services • Lawn care or home maintenance you normally perform

Funeral and burial expenses: If an accident results in death, PIP covers funeral, burial, or cremation costs up to policy limits.

Survivor benefits: Some PIP policies provide death benefits to dependents, partially replacing the deceased's lost income.

What PIP doesn't cover: • Damage to your vehicle (that's covered by collision or comprehensive) • Injuries to the other driver (they use their own PIP or your liability coverage) • Property damage • Pain and suffering (in no-fault states, you generally can't sue for this unless injuries meet a "serious injury threshold")

PIP Coverage Limits and Deductibles

Coverage limits: PIP limits typically range from $2,500 to $50,000 per person, per accident. Common limits include: • $10,000 (minimum in many states requiring PIP) • $25,000 • $50,000 • $100,000+ (available in some states)

Higher limits cost more: Premiums increase with higher coverage limits, but the added protection can be worth it if you have serious injuries.

Deductibles: Some states allow PIP deductibles (typically $250-$2,000). Choosing a higher deductible lowers your premium but increases out-of-pocket costs after an accident.

Stacking vs. non-stacking: If you have multiple vehicles: • Stacked coverage: Combines limits across all vehicles (e.g., two cars with $10,000 PIP each = $20,000 total available) • Non-stacked: Each vehicle's limit applies separately

Stacking increases premiums but provides more protection.

Per-person vs. per-accident limits: Most PIP policies have per-person limits. If you have three passengers and a $10,000 limit, each person can claim up to $10,000.

Which States Require PIP Insurance?

Required PIP states (no-fault states): These 12 states require PIP or similar no-fault coverage:

• 1. Florida: Minimum $10,000 PIP required
• 2. Hawaii: Minimum $10,000 PIP required
• 3. Kansas: Minimum $4,500 PIP required (can reject in writing)
• 4. Kentucky: Minimum $10,000 PIP required
• 5. Massachusetts: Minimum $8,000 PIP required
• 6. Michigan: Unlimited PIP required (can opt for lower limits if qualifying)
• 7. Minnesota: Minimum $20,000 medical expense, $20,000 lost wages required
• 8. New Jersey: Minimum $15,000 PIP required (can choose lower limits or opt out under certain conditions)
• 9. New York: Minimum $50,000 PIP required
• 10. North Dakota: Minimum $30,000 PIP required
• 11. Pennsylvania: Minimum $5,000 medical required (can reject for tort option)
• 12. Utah: Minimum $3,000 PIP required

Optional PIP states: Some states offer PIP as optional add-on coverage, including Arkansas, Delaware, Maryland, Oregon, Texas, Virginia, Washington, and Wisconsin.

States without PIP: The remaining states don't offer PIP but may offer similar coverage called Medical Payments (MedPay).

For complete state requirements, see our guide on minimum car insurance requirements by state.

PIP vs. Medical Payments (MedPay)

PIP and MedPay both cover medical expenses, but they differ significantly:

Medical Payments (MedPay): • Covers medical expenses only • Doesn't cover lost wages, childcare, or funeral expenses • Typically lower limits ($1,000-$10,000) • Available in non-PIP states • Always secondary to health insurance • Simpler, more limited coverage

Personal Injury Protection (PIP): • Covers medical expenses, lost wages, essential services, and more • Higher coverage limits available • Required in no-fault states • May be primary or secondary to health insurance • Broader, more comprehensive protection

Which is better? PIP offers more comprehensive protection if available in your state. If you live in a non-PIP state, MedPay provides basic medical coverage at lower premiums.

For a detailed comparison, see our article on what is medical payments coverage (MedPay).

How No-Fault Insurance Works

In no-fault states, PIP changes how accident claims work:

Your insurance pays first: After an accident, you file a claim with your own insurance company, not the at-fault driver's insurer. This speeds up the claims process.

Limited right to sue: In exchange for quick PIP payment, you generally can't sue the at-fault driver for pain and suffering or other non-economic damages unless your injuries meet your state's "serious injury threshold."

Serious injury thresholds: These vary by state but typically include: • Permanent injury or disfigurement • Significant limitation of body function • Death • Medical expenses exceeding a certain amount (e.g., $5,000)

If your injuries meet the threshold, you can file a liability claim against the at-fault driver in addition to receiving PIP benefits.

Liability coverage still matters: Even in no-fault states, you need liability insurance. If you cause an accident that seriously injures someone else, they may sue you beyond what their PIP covers.

How Much Does PIP Cost?

Average cost: PIP adds approximately $100-$300 annually to your premium, depending on: • Your state and its PIP requirements • Coverage limits you choose • Your deductible • Your age, location, and driving record • Whether you stack coverage across multiple vehicles

State variations: • Michigan: Historically the most expensive PIP (unlimited coverage), though recent reforms allow lower-cost options • Florida, New York: Moderate PIP costs ($150-250/year) • Kansas, Utah: Lower costs due to lower minimum limits

Ways to reduce PIP costs: • Choose the minimum required coverage (if adequate for your needs) • Select a higher deductible (where allowed) • Opt out of stacking (if permitted and you have strong health insurance) • Make PIP secondary to health insurance (where allowed) • Bundle auto and home insurance for multi-policy discounts

Do You Need PIP If You Have Health Insurance?

Even with good health insurance, PIP provides unique benefits:

Why you might still need PIP: • Covers non-medical costs: Health insurance doesn't cover lost wages, childcare, or funeral expenses—PIP does • No copays or deductibles: PIP often pays without the copays and deductibles your health plan requires • Covers passengers: Your health insurance covers you, but PIP covers your passengers who might not have insurance • Faster payment: PIP typically processes claims faster than health insurance • Required by law: If you live in a no-fault state, you must carry PIP regardless of your health coverage

When health insurance might be enough: • You live in an optional PIP state • You have excellent health insurance with low deductibles • You have robust disability insurance to cover lost income • You want to minimize insurance costs

Best approach: Consider PIP and health insurance complementary. PIP provides immediate, comprehensive protection that extends beyond medical bills, while health insurance covers ongoing healthcare needs.

How to File a PIP Claim

Step 1: Seek medical attention Get medical care immediately, even for minor injuries. Delaying treatment can jeopardize your claim.

Step 2: Report the accident Notify your insurance company as soon as possible—ideally within 24 hours. Most states require reporting within a specific timeframe (often 30 days).

Step 3: Submit required documentation • Police report (if filed) • Medical records and bills • Proof of lost wages (pay stubs, employer letter) • Receipts for other covered expenses

Step 4: Complete claim forms Your insurer will provide PIP claim forms. Fill them out completely and accurately.

Step 5: Attend medical evaluations Your insurer may require you to see their doctors for independent medical examinations (IME).

Step 6: Receive payment Once approved, your insurer pays medical providers directly or reimburses you for covered expenses.

Time limits: Most states require PIP benefits to be paid within 30 days of receiving required documentation.

Frequently Asked Questions