Compare Personal Injury Protection (PIP) Car Insurance: Rates, Discounts, & Requirements [2023]
Personal injury protection (PIP) insurance, also known as no-fault car insurance, covers medical bills, hospital bills, and other bodily injury costs resulting from an accident, regardless of fault. Rates vary from $12-$97 a month. Only 12 states require it, but it's a good investment for most drivers.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Nov 27, 2023
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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: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Personal injury protection or PIP insurance covers medical and hospital bills, rehabilitation services, and other costs resulting from an accident, regardless of fault
- PIP insurance is legally required in some states, optional in others, and unavailable in some locations
- PIP insurance is different from medical payments coverage and may still be necessary even if you have health insurance
Regardless of fault, personal injury protection or PIP insurance pays for hospital bills, medical bills, and other bodily injury costs resulting from an accident.
So depending on where you live, learning about PIP insurance is an essential part of understanding your car insurance policy.
Keep reading to determine how to file a PIP insurance claim, how much this coverage costs, how it interacts with other insurances, and decide if you need PIP insurance.
After discovering if you need affordable PIP insurance, compare quotes to find your best car insurance by entering your ZIP code into our free rate tool above.
What is personal injury protection or PIP insurance?
PIP insurance is required coverage in some states, optional in others, and completely unavailable in the rest of the country. What does PIP stand for? It is an acronym for personal injury protection.
What is personal injury protection? Essentially, it pays for necessary medical care and hospital bills resulting from a car accident, regardless of fault.
This separates it from your bodily injury liability car insurance coverage, which only pays for the other party’s medical costs in an accident you cause. Also known as no-fault insurance, PIP applies to your passengers and follows you if you’re in another car or are injured as a pedestrian or while cycling.
PIP coverage shares similarities with your health insurance and with another car insurance called medical payments (MedPay) coverage. However, PIP explicitly applies to injuries related to car accidents. Plus, it’s not as limited as MedPay coverage, which doesn’t apply to lost wages or necessary home services.
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What does PIP insurance cover?
You are familiar with the PIP insurance meaning, now let’s talk about exactly what this insurance protects you from. So, what is PIP coverage? PIP insurance offers relatively comprehensive coverage for medical expenses after an accident. Some may think PIP coverage only covers a visit to the ER, but it covers much more.
Technically, what PIP insurance covers may vary from state to state.
For example, PIP insurance typically pays for the following:
- Medical expenses. These expenses include surgeries, ambulance rides, hospital stays, X-rays, medication, dental and vision care, and prostheses.
- Rehabilitation services. Injuries in an accident often take a long time to heal. Fortunately, your PIP insurance helps cover any physical therapy you might need.
- Funeral expenses. PIP insurance covers funerals, cremations, and burials.
- Survivor’s loss. If you die in an accident, your PIP coverage acts as life insurance and pays your dependents for lost wages.
- Lost income. Injuries come with several types of expenses beyond the initial treatment. One that many people overlook is lost wages when you can’t immediately go back to work. PIP insurance helps cover a portion of your wages.
- Child care. Raising children is difficult in good health — PIP insurance pays for childcare expenses after an accident if you struggle to keep up.
- Household services. Like child care, PIP insurance can pay for landscaping, housecleaning, and other household chores when you can’t complete them.
You’ll need to check with a representative to see what your PIP insurance covers since state laws significantly impact your policy. For example, some states require that PIP insurance only covers 80% of your medical bills, leaving you with the remaining 20%.
Limits of PIP Insurance
The most important limitation of PIP insurance is that it will not cover property damage, only injury, and related expenses.
Personal injury protection insurance (PIP) is supposed to be used to supplement other parts of your auto policy including your state’s minimum coverage requirements. The other parts of your insurance policy may include:
- Property Damage liability
- Bodily injury liability coverage
- Comprehensive coverage
- Collision coverage
- Uninsured motorist coverage
To cover other damages, you would need to have collision or comprehensive insurance, or you would need to sue the at-fault driver for property damage.
Interestingly, in most no-fault states, you cannot sue the at-fault driver for injury-related expenses.
PIP insurance is limited to the dollar amount set in the coverage limit. Often the limit will be split, such as a $40,000 policy will cover $20,000 in medical expenses and $20,000 in other expenses, or $20,000 for the driver and $20,000 for other injured parties.
As with most insurance, PIP insurance will usually not be valid if you are doing something illegal when an accident occurs.
How do you file a PIP car insurance claim?
You file PIP car insurance claims in your mobile app, online, or over the phone, just like a traditional claim.
The coverage applies to any necessary medical treatments required immediately after an accident. So submit those forms for reimbursement to your insurance company.
Typically, unless specific laws are in place, you use your PIP coverage for payments before turning to your health insurance coverage.
Double-check the regional laws where you live and the procedure your insurance company follows to ensure your policy covers your medical costs.
As stated before, the amount your PIP insurance pays depends on state laws. For example, PIP insurance in Florida only pays for 80% of medical expenses. In New York, PIP insurance maxes out at $50,000 per person. Other states split policy limits between direct medical fees and other related costs. Learn more about Florida car insurance or New York car insurance here.
Although starting a PIP claim is similar to other types of insurance, it can be more complicated as time goes on. Therefore, it’s crucial to follow the instructions an insurance representative gives you — failing to do so could result in fines or claim denial.
How does personal injury protection work with other types of insurance?
Knowing how your insurance works can be confusing, especially if you have multiple policy types. If you or a passenger get injured in an accident, your PIP insurance is usually exhausted before other coverages kick in.
It depends on state law, but your PIP insurance typically covers your medical expenses first after a car accident, even if the other driver is at fault. Once your PIP coverage runs out, you can file a claim against the other driver’s liability policy.
Due to the nature of medical bills after an accident, you don’t need to wait until your claim resolves before you file with another type of insurance. For example, your insurance company should allow you to file a PIP and collision insurance claim simultaneously.
Although PIP insurance gets used first, there are situations when you can skip filing a claim and sue the at-fault driver instead. For example, most states allow injured drivers to sue after a severe or permanently disabling injury.
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Do you need PIP if you have health insurance?
PIP insurance pays for medical care, so do you need PIP insurance if you have health insurance?
If you live in a state where PIP is legally required, you have to purchase whatever limits are mandated in your state, regardless of whether you have health insurance.
Otherwise, if it’s an optional add-on where you live, know that PIP coverage applies to some things not covered by your healthcare.
For example, PIP insurance pays for lost wages, funeral expenses, childcare services, and rehabilitation expenses in some states.
Some states allow health insurance and PIP coverage to work together after an accident. For example, New Jersey and Michigan allow drivers to use health insurance for physical injuries and PIP for related expenses like lost income, allowing drivers to maximize their coverage without worrying about reaching their limits. Learn more about New Jersey car insurance or Michigan car insurance here.
Specifically, Michigan and New Jersey allow you to use your health insurance for medical payments and then turn to your PIP coverage for lost wages and other necessary home services.
Where is PIP insurance required?
You probably find yourself wondering, should I get PIP insurance? Are there any state requirements for having PIP?
Typically, PIP coverage is required in no-fault states. Therefore, it’s often referred to as no-fault insurance.
In no-fault states, your right to sue another driver is limited to certain tort thresholds. The threshold may be monetary or verbal.
Otherwise, after an accident, you rely on your own insurance policy to cover personal damages, regardless of fault.
So how does PIP relate to no-fault insurance? It provides all drivers with bodily injury protections, even in states where the right to pursue legal action against another driver is limited.
Other states have optional no-fault laws. PIP coverage may be available in those states. There are also at-fault or tort car insurance states. Whoever caused the accident uses their insurance policy to cover damages for all parties involved.
Some tort states do offer optional PIP insurance to drivers.
For example, in Texas and Washington, insurance companies must offer all drivers PIP coverage, but drivers can waive it.
The table below shows the PIP insurance requirements in the states that legally mandate this coverage.
| State | Coverage Requirement |
|---|---|
| Arkansas | $5,000 per person |
| Delaware | $15,000 per person $30,000 per incident $5,000 for funeral expenses |
| Florida | $10,000 per person |
| Hawaii | $10,000 per person |
| Kansas | $4,500 per person in medical expenses $4,500 for rehab expenses $2,000 for funeral expenses $900 per month for disability and loss of income $25 per day for in-home costs |
| Kentucky | $10,000 per person, per accident |
| Maryland | 2500 per person |
| Massachusetts | $8,000 per person |
| Michigan | $250,000 per incident $50,000 for some qualifying Medicaid enrollees Opt-out option available for some Medicare recipients |
| Minnesota | $20,000 for medical expenses $20,000 for income loss |
| New Jersey | $15,000 per person Up to $250,000 for severe or permanent injury |
| New York | $50,000 per person $2,000 death benefit 80% lost income or up to $2,000 per month $25 per day for additional services |
| North Dakota | $30,000 per person |
| Oregon | $15,000 per person |
| Pennsylvania | $5,000 per incident in medical benefits coverage |
| South Dakota | No minimum coverage requirement |
| Texas | $2,500 per person |
| Utah | $3,000 per person $1,500 per person for funeral expenses $3,000 death benefit $250 per week or 85% of lost wages $20 per day for additional services |
| Virginia | $2,000 Up to $100 per week for lost wages for up to 12 months, in some cases |
| Washington | $10,000 per accident |
| Washington, D.C. | $50,000 per person $12,000 per person for lost wages $4,000 for funeral expenses |
The coverage is titled Medical Benefits in Pennsylvania, but it is the same as PIP insurance, just with a different name.
The table above shows the states where PIP is required, all of which are no-fault states.
But you can also optionally add PIP car insurance to your policy if you live in Arkansas, the District of Columbia, Kentucky, Maryland, New Hampshire, South Dakota, Texas, and Washington.
In other states, you do not have the option to buy PIP insurance at all.
How much does PIP insurance cost?
So, how much does PIP insurance cost on average? According to the database report from the National Association of Insurance Commissioners (NAIC), the national PIP insurance average cost is $155.65 per year.
The table below shows the pure PIP insurance premium reported by the NAIC in the states where the data is available.
| State | Rates |
|---|---|
| Arkansas | $12 |
| Connecticut | $27 |
| Delaware | $12 |
| District of Columbia | $27 |
| Florida | $17 |
| Hawaii | $51 |
| Kansas | $32 |
| Kentucky | $71 |
| Maryland | $55 |
| Massachusetts | $37 |
| Michigan | $39 |
| Minnesota | $97 |
| New Jersey | $16 |
| New York | $18 |
| North Dakota | $37 |
| Oregon | $76 |
| Pennsylvania | $52 |
| Utah | $31 |
| Washington | $70 |
| Countrywide | $13 |
Overall, your PIP insurance rates depend on the state you live in, your policy coverage limits, and the deductible you choose.
What is a PIP deductible? It is an amount you pay out of pocket before your insurer steps in to pay the rest, up to your policy limits.
PIP doesn’t always have a deductible. In fact, it’s unusual and is an option in some states. Deductibles typically range from $100 to $2,000. Lower deductibles lead to higher rates, and higher deductibles lead to lower monthly costs. But be mindful not to select a deductible that is too high.
To secure your cheapest possible PIP insurance quotes, compare rates online from multiple of the best car insurance companies.
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What factors determine the cost of PIP insurance?
The factors that determine the cost of PIP insurance are mostly the same factors that determine the cost of any auto insurance:
- your driving record
- your age
- your location
- the deductible amount
The amount of coverage you require is also going to affect the price, as well as the number of vehicles you need to insure.
One special factor that can affect the cost of PIP insurance in some states is lawsuits.
An article in the Tampa Bay Times states that an excessive amount of PIP claims has caused car insurance companies to increase their rates, sometimes charging customers four times the amount they would have paid in early 2009.
In particular, it appears that attorneys for medical facilities are suing insurance companies for relatively low sums of money, but the process is costing the state a fortune in legal fees–a cost that they pass on to the consumer in the form of higher rates.
Is PIP insurance different from medical payments coverage?
Some people confuse PIP insurance with medical payments or MedPay car insurance.
The two insurances are similar, but MedPay coverage is more limited than PIP insurance.
What is MedPay coverage? It helps with medical and hospital bills resulting from an accident, regardless of fault.
But what is PIP insurance? It also covers medical bills after an accident regardless of fault. But it may help with lost wages, ongoing rehabilitation services, funeral costs, and home or childcare services.
So, is there ever a reason why you should invest in both PIP and MedPay insurance?
If your PIP limits are very low, adding MedPay may provide you with supplemental coverage to fill in any gaps.
But, typically, investing in both insurance types is redundant.
Plus, not every driver gets the option to choose both. In some states, like Virginia, MedPay is offered as an optional policy add-on, while PIP insurance is not available to drivers at all. Maine is the only state requiring MedPay, but other states offer it as an optional policy add-on. If you live in a MedPay state, it’s still an excellent option to consider since it can help cover expensive medical bills for you and your passengers. Learn more about Maine car insurance here.
Personal Injury Protection Insurance vs. No-Fault Insurance
There are 12 no-fault states in the U.S. requiring drivers to pay for their own injuries after an accident, meaning you can’t rely on another driver’s liability coverage. Only injuries that cross a tort threshold — or a monetary or verbal limit — are eligible for lawsuits.
Monetary thresholds in no-fault states specify an amount your medical bills must exceed before you can sue a driver. Verbal thresholds list specific injuries that qualify for lawsuits, including loss of bodily function, dismemberment, disfigurement, or death. Most states lower thresholds if the at-fault driver was under the influence of drugs or alcohol.
Often, people refer to PIP coverage as no-fault car insurance because the 12 no-fault states require drivers to carry a minimum amount of it.
While no-fault insurance refers to PIP coverage, it’s not exclusive to no-fault states. So, drivers in several other states can purchase it even though it’s not required.
PIP Insurance: The Bottom Line
PIP insurance covers medical costs, hospital bills, rehabilitation services, and other lost wages resulting from an accident. If you live in a state where PIP is legally required, you must add the mandatory PIP limits to your car insurance policy.
Otherwise, if you live in a state where the insurance is optional, adding PIP coverage is ideal for people with limited health insurance or those who want more substantial bodily injury protection.
But unfortunately, in some states, PIP insurance is not available.
To secure the best PIP insurance company for you, compare quotes online from multiple top companies.
Now that you know if you need to buy PIP insurance, enter your ZIP code into our free quote comparison tool below to receive rates from the best companies in your region.
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Case Studies: Finding Cheap PIP Insurance
Case Study 1: Sarah’s Smart Choices
Sarah, a careful driver from Minnesota, wanted to find cheap PIP insurance without compromising on coverage. She decided to choose the right amount of coverage by opting for a policy that exceeded the state minimum but wasn’t excessive.
Sarah also maintained a clean driving record and actively worked on getting any moving violations removed.
By comparing quotes from multiple car insurance companies using online comparison tools, Sarah was able to find affordable PIP insurance that met her needs. Her smart choices resulted in significant savings on her monthly premium.
Case Study 2: James’ Comprehensive Research
James, a budget-conscious driver from New Jersey, was determined to find the cheapest PIP insurance available. He conducted extensive research and compared quotes from various insurance providers.
James discovered that some companies offered lower rates for PIP coverage while still providing adequate protection. By investing time in shopping around and analyzing different options, James was able to secure a cheap PIP insurance policy that aligned with his budget.
Case Study 3: Maria’s State-Specific Approach
Maria, a resident of Florida, understood the importance of PIP insurance due to the state’s regulations. She aimed to find affordable coverage that would protect her and her family in the event of an accident.
Maria decided to explore insurance companies that specialized in offering PIP coverage in Florida. By focusing on providers familiar with the state’s unique requirements, Maria was able to find competitively priced PIP insurance tailored to Florida residents.
Frequently Asked Questions
What is Personal Injury Protection (PIP) Car Insurance?
Personal Injury Protection (PIP) car insurance is a type of coverage that helps pay for medical expenses and other related costs resulting from a car accident, regardless of who is at fault. PIP coverage is designed to provide swift and immediate access to medical treatment and support for injured parties.
What does PIP car insurance cover?
PIP car insurance typically covers the following expenses:
- Medical expenses: This includes doctor’s visits, hospital bills, surgeries, medications, and rehabilitation services.
- Lost wages: PIP can provide compensation for the income you lose while recovering from injuries sustained in a car accident.
- Funeral expenses: PIP may cover funeral and burial expenses in the event of a fatal car accident.
- Additional expenses: PIP can help cover expenses such as childcare, housekeeping, or transportation to medical appointments.
Is PIP Car Insurance required in all states?
No, PIP car insurance is not required in all states. It is a mandatory coverage in some states known as “no-fault” states, where each driver’s insurance company pays for their respective policyholder’s medical expenses and other related costs, regardless of who caused the accident. However, PIP coverage is not mandatory in “at-fault” states, where the at-fault driver’s insurance is responsible for covering the expenses of the injured party.
Which are no-fault states?
The following 12 states are considered no-fault states: Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, and New York.
What are the advantages and disadvantages of being in no-fault states?
The advantages of no-fault states include faster reimbursement for medical expenses and the ability to receive compensation even in situations where fault is difficult to determine. However, a drawback is that the cost is not necessarily assigned to the responsible party, potentially resulting in higher premiums for both parties involved.
What are the benefits of having PIP Car Insurance?
Having PIP car insurance can provide several benefits, including:
- Prompt medical coverage: PIP ensures that you receive immediate medical treatment and support after a car accident, without having to wait for fault determinations or legal proceedings.
- Coverage for a wide range of expenses: PIP not only covers medical expenses but also provides coverage for lost wages, funeral expenses, and other related costs, which can help alleviate financial burdens.
- Protection for you and your passengers: PIP coverage extends to all occupants of your vehicle, providing financial support for their medical expenses and other costs in the event of an accident.
- Reduced legal complexities: In no-fault states, PIP coverage helps streamline the claims process and reduces the need for legal action to recover expenses.
Can I have PIP coverage along with other types of car insurance?
Yes, in states where PIP coverage is mandatory, you are required to have it as part of your car insurance policy. You can also have additional coverage options, such as liability coverage, collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage, alongside PIP coverage to provide comprehensive protection.
How does personal injury protection work with other types of insurance?
Personal injury protection (PIP) insurance usually covers your medical expenses first after an accident, regardless of fault. Once your PIP coverage is exhausted, you may be able to file a claim against the other driver’s liability policy. PIP insurance is primary in most cases, but the specific coordination with other types of insurance may vary depending on state laws.
Do you need personal injury protection if you have health insurance?
Having health insurance doesn’t necessarily eliminate the need for personal injury protection (PIP) coverage. In some states, PIP insurance is required to drive legally on public roads. Additionally, PIP insurance can cover expenses that health insurance may not, such as lost income, household services, or childcare services. It is advisable to consider PIP insurance even if you have health insurance to ensure comprehensive coverage after an accident.
How can I find cheap PIP insurance?
To find cheap PIP insurance, choose the right amount of coverage, maintain a clean driving record, and compare car insurance companies. The average cheap PIP insurance rate is $12 per month.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
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.