What is Personal Injury Protection (PIP)?
Personal Injury Protection (PIP) is an auto insurance coverage that pays for your medical expenses and related costs after a car accident — regardless of who caused it. Because fault does not matter, it is often called no-fault insurance. PIP is designed to get you fast access to medical care and help cover lost income if you’re unable to work.
What Does Personal Injury Protection Cover?
PIP typically covers:
- Medical bills for you and your passengers
- Rehabilitation and therapy costs
- Lost wages if you can’t work due to injury
- Essential services you can’t perform (like childcare or housekeeping)
- Funeral expenses in case of a fatal accident
Example: If you’re injured in a crash and miss two weeks of work, PIP can help replace your lost income — something regular health insurance usually won’t do.
Who Needs PIP Coverage?
PIP is mandatory in several states with no-fault insurance laws. Even in states where it’s optional, it’s valuable if you don’t have strong health insurance, or if you want additional protection for lost wages and household help.
How Does PIP Differ from Medical Payments Coverage?
| PIP | Medical Payments (MedPay) |
|---|---|
| Covers medical bills, lost wages, and essential services | Only covers medical bills |
| May include funeral expenses | No funeral expense coverage |
| Available in no-fault states (and some optional states) | Optional in most states |
Is PIP Required?
Some states require drivers to carry PIP, including Florida, New York, Michigan, and others. In these states, you must purchase at least the minimum PIP limit set by law. In states where PIP is optional, you can usually add it to your policy for an extra premium.
What’s Not Covered by PIP?
PIP does not cover:
- Damage to your vehicle
- Liability for injuries to others
- Injuries that occur outside a vehicle (like biking or walking)
How to File a PIP Claim
If you’re injured in an accident:
- Notify your insurer as soon as possible.
- Submit medical bills and proof of lost wages.
- Work with your insurer’s claims adjuster for approval.
Depending on your policy, payments may go directly to your healthcare provider or to you.
How Much Coverage Should You Have?
PIP limits vary widely, typically from $10,000 to $50,000. Consider:
- Your health insurance coverage
- Your income (higher earners may want higher PIP)
- State minimum requirements
Why Consider Personal Injury Protection?
PIP provides fast access to care, protects your income, and can fill gaps in health insurance. Without it, you may face significant out-of-pocket costs while waiting for fault to be determined after an accident.
Frequently Asked Questions
Does PIP cover passengers in my car?
Yes, PIP usually covers your passengers, regardless of who was at fault.
Can I use PIP if I already have health insurance?
Yes. PIP often works alongside health insurance, helping with deductibles, lost wages, and services not covered by health plans.
Does PIP cover accidents when I’m a pedestrian?
In many states, yes. If you’re hit by a car while walking, your PIP may still apply.
Is PIP available in every state?
No. Some states require it, some make it optional, and others do not offer it at all. Always check your state’s laws.
Will my PIP premiums go up if I file a claim?
It’s possible. Even though PIP is no-fault, insurers may still raise rates after a claim depending on your state and insurer.