Personal Injury Protection (PIP) Auto Insurance Defined (2024)
Personal injury protection (PIP) auto insurance covers medical expenses and related costs when you or your passengers are injured in an accident, no matter who is at fault. Personal injury insurance is generally affordable. A personal injury protection policy usually costs between $5 and $50 per month.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
UPDATED: Jul 25, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Personal Injury Protection (PIP) insurance covers medical expenses after you or your passengers are injured in an accident
- Unlike medical payments or health insurance, PIP coverage pays for lost wages, funeral expenses, and essential services costs
- Your rates will vary, but PIP usually adds between $5 and $50 to your monthly car insurance bill
Getting into a car accident is a terrible experience, especially if you or one of your passengers is injured. While your health insurance can help pay for injuries resulting from a car accident, it doesn’t cover expenses like lost wages.
Personal injury protection coverage is an auto insurance requirement in 16 states and an optional add-on in several others. It covers medical expenses for you or your passengers after a car accident. Personal injury protection car insurance also handles related expenses, like funeral costs and essential services.
Read on to learn how PIP auto insurance can help you and your passengers after a car accident. Then, compare PIP insurance quotes with as many companies as possible to find the best rates.
What is personal injury protection auto insurance?
Personal injury protection auto insurance is a type of coverage that helps pay for medical expenses in several situations, including the following:
- You or your passengers are injured in an accident.
- You’re injured as a passenger in someone else’s car.
- A car injures you while you’re walking or bicycling.
While it might sound similar to bodily injury liability auto insurance, PIP coverage is not the same. Bodily injury insurance covers damage you cause to others in an at-fault auto accident, while PIP auto coverage takes care of your medical needs.
Many states require PIP insurance coverage before you can drive, but you can also buy it in states that don’t. While it often covers some of the same medical events as your health insurance, PIP coverage is written explicitly for car-related injuries.
What is covered by personal injury protection?
PIP insurance helps pay expenses related to injuries sustained in a car accident. While these expenses vary by state, they typically include the following:
- Hospitalization
- Operations
- Physical therapy
- Lost wages due to being unable to work
- Ambulance fees
- Funeral expenses
- Essential services when you can’t perform normal duties yourself, such as childcare or house cleaning
As a general rule of thumb, PIP car insurance covers anything reasonably related to a car accident injury.
What is the difference between PIP and no-fault insurance?
PIP coverage and no-fault auto insurance sometimes refer to the same thing — it all depends on your state laws.
States have either no-fault or at-fault laws for car accidents. In no-fault states, your insurance covers your expenses after an accident, no matter who caused it. When damage crosses your state’s PIP threshold, then you can make a claim against the at-fault driver.
PIP insurance is considered no-fault insurance in these states because you’ll exhaust your coverage limits before you can file a claim against the other driver.
In at-fault states, PIP coverage is not considered no-fault insurance. Instead, the at-fault driver’s bodily injury liability will likely pay for your medical bill before your PIP insurance kicks in.
What is the difference between personal injury protection and medical payments insurance?
Personal injury protection coverage and medical payments auto insurance coverage (MedPay) are similar in that they cover medical expenses after an accident. But, what is the main difference between PIP and MedPay?
PIP insurance offers more extensive coverage than MedPay. MedPay, which is only required by Maine auto insurance laws, only covers direct medical expenses and funeral costs for you and your passengers. It does not cover lost income or living expenses like childcare or home cleaning.
PIP auto insurance might sound more appealing than MedPay because it covers more, but insurance companies don’t sell it in every state. Although MedPay doesn’t cover quite as much, it’s still an excellent option to protect your health.
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Minimum PIP Requirements by State
The minimum auto insurance requirements for each state vary. Although PIP insurance offers valuable protection, most states do not require it. Check below to see if your state requires PIP insurance and how much coverage you might need.
Minimum PIP Requirements by State
| Where PIP is Required | Minimum PIP Requirements | Where PIP is Optional | Minimum PIP Requirements |
|---|---|---|---|
| Delaware | $15,000 per person $30,000 per accident $5,000 in funeral costs | Arkansas | $5,000 |
| Florida | $10,000 per person | Kentucky | $4,500 per person $2,000 burial benefit $10,000 in lost wages and rehabilitation |
| Hawaii | $10,000 per person | Maryland | $2,500 |
| Kansas | $4,500 per person for medical costs and rehabilitation $2,000 in funeral costs $900/mo for lost wages $25/day for household services | South Dakota | $2,000 per person $10,000 in death benefits $60/week in disability |
| Massachusetts | $8,000 per person, per accident | Texas | $2,500 per person |
| Michigan | $250,000-$500,000 per person | Virginia | $2,000 per person $100/wk for lost wages |
| Minnesota | $20,000 medical coverage $20,000 for lost wages | Washington, D.C. | $50,000 per person $12,000 for lost wages $4,000 in funeral costs |
| New Jersey | $15,000 per person, per accident | Washington | $10,000 per accident |
| New York | $50,000 per person $2,000 in death benefits $2,000/mo for lost wages (or 80% of income) $25/day for household services | ||
| North Dakota | $30,000 per person | ||
| Oregon | $15,000 per person | ||
| Utah | $3,000 per person $1,500 in funeral costs $3,000 in death benefits $250/wk for lost wages (or 85% of income) $20/day for household services |
You can still buy PIP coverage if it’s not required, but only in select states. States like Arizona, California, and Tennessee allow insurance companies to sell MedPay insurance rather than PIP coverage.
How much does PIP cost?
As far as coverage goes, personal injury insurance is affordable. Most PIP policies cost between $5 and $50 a month.
The biggest factors that affect the price of PIP coverage are insurance laws in your state. Rates are usually higher in no-fault states that require PIP insurance. The amount of coverage in your policy will also change your price, with a higher limit meaning increased rates.
Regardless, finding companies that offer cheap PIP insurance isn’t usually difficult. As long as you’re eligible, there’s no reason to skip PIP insurance if it fits your budget. Having PIP insurance in the event of an accident will likely give you access to better health care.
Is PIP necessary if you have health insurance?
Although PIP insurance is valuable coverage, whether you need it depends on your state. There are 16 states that require PIP insurance, meaning you’ll have to file a PIP claim if you’re injured in an accident.
If you don’t live in a state that requires PIP, your health insurance won’t deny a claim from an auto accident. However, it won’t cover everything, especially if you need help with lost wages, funeral costs, or essential services.
Some states allow your PIP and health insurance to work together after a car accident. States like New Jersey and Michigan allow your health insurance to cover physical injuries while your PIP covers other losses. This will enable you to maximize your PIP coverage and health insurance simultaneously.
Regardless of whether your state requires you to carry it, PIP insurance is usually so affordable that it’s worth adding to your policy. At the very least, you should ask your insurance company how much PIP coverage would cost.
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How do you file a PIP claim?
Filing a personal injury protection claim is the same as filing an auto insurance claim with any other type of insurance. It depends on your company, but you can usually start a claim online, on a mobile app, or by calling an insurance representative.
PIP insurance covers emergency care immediately after an accident, so you won’t have to worry about hospital visits or ambulance rides. Non-urgent care requires an approved treatment plan usually created by a doctor from your company’s network.
The amount your PIP insurance covers depends on your policy and the state you live in. For example, New York limits PIP payments to $50,000 per person, while Florida caps coverage at 80% of your medical costs. Other states split their limits between direct medical expenses and additional related costs.
Although starting a PIP claim is similar to other types of insurance claims, it can be more complicated as time goes on. It’s crucial that you follow the instructions an insurance representative will give you — failing to do so could result in fines or even the denial of your claim.
How does PIP work with other types of insurance?
When you’re injured in an accident, your PIP insurance is usually exhausted before other parts of your policy kick in.
For example, if someone hits you, your PIP will cover your medical expenses first if you live in a no-fault state. If you reach the limit of your PIP insurance, you can then file a claim against the other driver’s liability insurance.
As for your insurance, you don’t have to wait until a PIP claim resolves before you can start other claims. If you need to file a collision auto insurance and PIP claim simultaneously, your insurance company can handle it.
Of course, there are times when you can skip a PIP claim and file a lawsuit against another driver instead. If your injuries are severe or permanently disabling, or if your medical expenses cross your state’s tort threshold, you don’t need to make a PIP claim.
Find the Best PIP Insurance Rates Today
Whether your state requires it or not, personal injury protection insurance offers valuable coverage at affordable rates. Unless you’re trying to keep your insurance as low as possible, adding PIP coverage to your policy is usually worth it.
Of course, PIP insurance isn’t available in every state. Speak with an insurance representative to check if your state sells PIP or MedPay coverage, then compare quotes to find the best rate possible.
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Frequently Asked Questions
What is PIP on an auto insurance policy?
So, what is personal injury protection coverage? PIP stands for personal injury protection and is a type of insurance that pays your medical expenses after an accident, no matter who is at fault. PIP coverage is required in 16 states and is generally affordable.
Should you use PIP insurance?
If you live in a state that requires it, you’ll need to get PIP insurance before you can drive. If your state does not require it, PIP coverage is still a good investment because it can save you thousands in medical bills if you’re injured in a car accident.
Is PIP coverage the same as bodily injury liability insurance?
No. PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. It also covers your loss of income, funeral expenses, and essential services. Bodily injury liability insurance covers damage you cause to other people.
What does personal injury protection cover?
So, what is covered under personal injury protection? PIP insurance typically covers the following expenses:
- Medical expenses: PIP pays for medical treatment, hospital stays, surgeries, medication, and other related medical costs.
- Lost wages: PIP provides coverage for a portion of lost income due to the injury, including time off work for medical treatment or recovery.
- Rehabilitation costs: PIP may cover physical therapy, occupational therapy, or other forms of rehabilitation required after an accident.
- Funeral expenses: In the unfortunate event of a fatal accident, PIP may cover funeral and burial expenses.
Is PIP insurance mandatory?
PIP insurance requirements vary by state. Some states require drivers to carry PIP insurance as part of their auto insurance policy, while others offer it as an optional coverage. States that have “no-fault” insurance systems typically require PIP coverage.
How does personal injury protection vs. medical payments differ?
PIP insurance and medical payments coverage (MedPay) are similar in that they both cover medical expenses resulting from a car accident. However, there are a few key differences:
- PIP is usually broader in scope and covers a wider range of expenses, such as lost wages and rehabilitation costs, in addition to medical bills. MedPay typically covers only medical expenses.
- PIP coverage is mandatory in some states, while MedPay is optional in most states.
- PIP coverage pays out regardless of fault, while MedPay coverage typically requires someone to be at fault before a claim can be made.
How much personal injury protection insurance do I need?
The amount of personal injury protection insurance you need depends on your individual circumstances, such as your state’s requirements, your health insurance coverage, and your budget.
How much does PIP insurance cost?
The cost of PIP auto insurance coverage varies depending on factors such as your location, driving history, coverage limits, deductible amount, and insurance provider. On average, PIP insurance costs around $100 to $300 per year, but rates can vary.
What is the minimum required amount for PIP?
PIP limits vary by state. Some states require drivers to carry PIP coverage, while others do not. Additionally, states that mandate PIP coverage may have specific minimum coverage limits that drivers must meet.
Who gets the PIP check?
The PIP check is typically issued to the insured individual who holds the PIP insurance policy.
Is PIP insurance worth it?
Whether PIP is worth it depends on your individual needs and circumstances. Personal injury protection helps pay for eligible expenses such as medical, funeral, disability, lost wages, and other costs associated with injuries sustained in an accident.
Does personal injury protection (PIP) insurance cover physical therapy after a car accident?
Yes, PIP insurance typically covers physical therapy expenses incurred as a result of injuries sustained in a car accident. This can include costs associated with rehabilitation, chiropractic care, and other medically necessary treatments.
How to buy PIP coverage?
You can purchase PIP coverage as part of your auto insurance policy from your insurance provider.
Should I have personal injury protection?
Whether you should have personal injury protection depends on your state’s requirements, your health insurance coverage, and your individual needs.
Does a PIP claim increase my rate?
Generally, filing a PIP claim should not directly impact your insurance premium or rates because PIP coverage is considered “no-fault” insurance.
Does PIP cover car damage?
No, PIP insurance typically does not cover damage to your vehicle. It only provides benefits for medical expenses, lost wages, and other costs resulting from injuries sustained in an accident.
Do I need PIP insurance if I have Medicare?
Again, this depends on your individual circumstances and the coverage provided by your health insurance. Medicare may cover some medical expenses resulting from a car accident, but PIP insurance can provide additional coverage for expenses not covered by Medicare.
What is personal injury protection coverage in Texas?
In Texas, personal injury protection is an optional auto insurance coverage that provides benefits for medical expenses, lost wages, and other related expenses.
How does PIP insurance work in Texas?
In Texas, PIP insurance is optional, and drivers can choose whether to include it in their auto insurance policies.
Does Arizona have PIP coverage?
No, Arizona does not mandate drivers to carry personal injury protection (PIP) insurance.
Does Virginia have PIP coverage?
Virginia drivers are not required to carry personal injury protection (PIP) insurance.
Do you need additional personal injury protection coverage?
If you live in a state with mandatory PIP requirements, you’ll need to purchase at least the minimum required coverage to comply with the law.
Does State Farm offer personal injury protection coverage?
Yes, State Farm offers PIP coverage as an optional add-on to its auto insurance policies in some states.
Is PIP required in California?
California is not a no-fault state, which means that drivers are not required to carry PIP coverage.
Is personal injury protection required in Texas?
PIP coverage is not mandatory in Texas as the state follows a traditional tort system for auto insurance, where the at-fault driver is responsible for paying for the damages resulting from an accident.
Does Utah demand PIP insurance?
Yes, personal injury protection (PIP) insurance is mandatory for all auto insurance policies in Utah.
Does Tennessee require PIP coverage?
PIP coverage is not mandatory in Tennessee.
Is PIP insurance mandatory in Georgia?
Drivers do not need to carry PIP coverage in Georgia. They only need tocarry liability insurance that covers bodily injury and property damage liability to compensate others for injuries or damages they cause in an accident.
Does the General have PIP insurance?
Yes, The General offers personal injury protection car insurance where required by state law.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.