What is personal injury protection (PIP) coverage?

When thinking about car insurance, you typically think of what helps pay for repairs after an accident or when a tree limb falls on your car. However, you can also buy coverage to help pay for your and your passenger’s medical expenses.

Personal injury protection insurance is a state minimum car insurance requirement in 12 states and optional coverage in several others. Unlike medical payments or health insurance, personal injury insurance covers related expenses like funeral costs, lost wages, and childcare services.

Read on to learn more about personal injury protection insurance and if it’s the right choice for you. Then, compare quotes with as many companies as possible to find the best rates.

What is personal injury protection insurance?

Personal injury protection (PIP) insurance covers medical bills for you and your passengers after an accident. PIP insurance covers various medical expenses, from emergency room visits to rehabilitative services.

It also protects you when you get injured as a passenger in another car or if someone hits you while walking or riding a bike.

Though it sounds similar to other coverage types, personal injury insurance differs from bodily injury liability or regular medical insurance.

Bodily injury liability insurance covers medical bills for others when you cause an accident. However, it doesn’t pay for any medical expenses for you or your passengers. Most states require drivers to carry a minimum amount of liability car insurance before driving or registering a car.

While your health insurance often pays for injuries after an accident, not everything is covered. PIP auto insurance takes care of your medical needs after a car accident, and you’ll see that it covers much more than standard health coverage.

Finally, personal injury protection coverage isn’t the same as medical payments insurance, although they’re similar. Whether you buy medical payments or PIP car insurance depends on your state.

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What does personal injury protection insurance cover?

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. 

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%.

How do you file a personal injury protection insurance claim?

Filing a car insurance claim is similar to any other type of car insurance process. It depends on your insurance company, but you can usually file a claim online, through a mobile app, over the phone, or in person.

When you make a PIP insurance claim, your policy covers medical expenses after an accident, such as an ambulance ride or surgery. Additional medical expenses, such as physical therapy or child care services, are subject to review from your company. Typically, you’ll need to work with a medical professional your insurance company chooses.

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.

Do you need personal injury protection if you have health insurance?

It might sound redundant to get PIP coverage if you have health insurance, but purchasing it still might be a good idea.

Depending on where you live, you might need PIP insurance to drive legally on a public road. 12 U.S. states require drivers to carry a minimum amount of PIP insurance. If you live in one, you’ll need to file a PIP claim for any injury you sustain before you can use your health insurance.

PIP insurance offers valuable coverage even if you don’t live in a state requiring it. Health insurance usually covers some medical expenses after an accident, but it might not cover everything. For example, health insurance doesn’t often cover household or childcare services after a car accident.

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.

No matter what situation applies to you, PIP insurance is usually worth it because it’s an affordable add-on to your policy. At the least, ask a representative to see how much PIP coverage would cost.

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How much does PIP insurance cost?

Personal injury protection insurance is usually affordable, costing between $5 and $50 a month on average.

The most significant factor affecting your car insurance rates is local laws. For example, no-fault states typically see higher PIP insurance rates because of higher minimum requirements. Additionally, the more coverage you buy, the higher your rates.

Since it’s so affordable, PIP insurance is usually a good addition to your policy. For a relatively small monthly cost, you could save yourself thousands of dollars in medical bills after an accident.

Which states require personal injury protection insurance?

Personal injury protection insurance offers valuable protection for drivers, but most states don’t require it. Check if your state requires it below.

If your state doesn’t require PIP insurance, you may still be able to buy it. States like Maryland, Virginia, and Kentucky offer PIP insurance but don’t require it. However, some states require companies to offer PIP insurance, meaning you’ll need to sign a waiver saying you don’t want to buy it.

If PIP insurance is unavailable in your state, you can purchase medical payments (MedPay) insurance instead. MedPay is similar to PIP insurance but has a few important distinctions.

Are personal injury protection and medical payments the same?

While they cover similar areas, PIP and MedPay insurance are different. PIP insurance offers more extensive coverage than MedPay coverage.

MedPay only covers direct medical expenses and funeral costs compared to PIP insurance. It doesn’t cover expenses like lost income, child care, or household services.

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.

Find the Best Personal Injury Protection Insurance Today

Whether your state requires it or not, personal injury protection insurance offers valuable protection at affordable rates. Adding PIP insurance to your plan is worth it if you can spare the $5 to $50 addition to your monthly rates.

Since PIP insurance isn’t available in every state, check with a representative to see what’s available in your location. Once you know what’s available, compare quotes to find the best rate possible.

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Case Studies: What is personal injury protection (PIP) coverage?

Case Study 1: Mary’s Medical Expenses Covered

Mary, a resident of New York, was involved in a car accident where she suffered injuries requiring extensive medical treatment. Thanks to her personal injury protection (PIP) insurance, she was able to cover her medical bills, including an ambulance ride, surgery, and physical therapy. PIP insurance provided her with financial support and ensured she received the necessary medical care.

Case Study 2: John’s Comprehensive Coverage

John, a driver from Florida, was in a car crash caused by another driver. He suffered severe injuries and had to undergo multiple surgeries and extensive rehabilitation. With his PIP insurance, John’s medical expenses were covered up to 80%, helping him cope with the financial burden of his treatment.

Case Study 3: Lisa’s Additional Support

Lisa, a pedestrian, was hit by a car while crossing the street. Despite having health insurance, her policy did not cover all the expenses associated with her accident, such as lost income and household services. However, Lisa had PIP insurance, which helped cover these additional costs and provided her with the support she needed during her recovery.

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