Affordable Personal Injury Protection (PIP) Auto Insurance Coverage (2023)

Personal injury protection or PIP insurance covers medical bills, hospital bills, and other losses resulting from a car accident and protects you and your passengers regardless of fault.

Knowing how PIP coverage works is vital to understanding auto insurance, especially if you live in a no-fault state that legally requires this insurance.

Keep reading to learn everything there is to know about PIP insurance, what it covers, how it works with other insurances, and where it is available or required.

After determining if you need affordable PIP insurance, enter your ZIP code into our free rate tool above to compare quotes from the best auto insurance companies near you.

What is personal injury protection or PIP insurance?

We often hear drivers ask questions about PIP insurance, an auto insurance coverage that is mandatory in some states, optional in others, and completely unavailable in several states.

First, what does PIP stand for? It is an acronym for personal injury protection.

But what is personal injury protection insurance? Also known as no-fault insurance, this coverage protects you and your passengers if you are injured in a car accident, regardless of fault.

This separates it from bodily injury liability insurance, which only applies to the medical costs of the other party involved in an accident you cause.

It also follows you if you are involved in an accident while a passenger in someone else’s car, or while walking or cycling as a pedestrian.

PIP insurance shares similarities with health insurance policies and another auto insurance called medical payments (MedPay) coverage.

However, PIP is explicitly written for injuries related to car accidents. It also includes more coverage than what MedPay offers, including lost wages, childcare services, and more.

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What does PIP insurance cover?

Now that you know the PIP insurance meaning, you may still be wondering, what is PIP coverage, and when does it apply?

The type of expenses PIP insurance covers may vary by state. So check with your regional laws and local agent for individualized details.

But, essentially, it pays for your medical or hospital bills, rehabilitation services, and other lost wages resulting from a car accident. If you’re wondering does auto insurance covers lost wages because of an accident, PIP insurance is the answer.

Beyond medical expenses, it may also extend to lost wages if you cannot work and even funeral expenses.

It also may pay for home care needs like childcare services or house cleanings if you cannot perform these responsibilities yourself due to injuries.

How do you file a PIP insurance claim?

Fortunately, for those asking how to file a PIP insurance claim, it is as easy as filing an auto insurance claim online or over the phone.

Your PIP coverage applies to any necessary medical expenses required immediately after an accident.

So, you typically submit any hospital or medical bills to your insurance company for reimbursement.

If you experience ongoing or continuous non-urgent treatments after the fact, your insurance company may review and pre-approve the medical plan with an expert of the company’s choosing.

But be careful to follow the timeline set by your insurance company and abide by any regional state laws.

For example, New York drivers must submit medical bills within 45 days for the treatment to be considered for repayment.

When in doubt, ask your insurance agent for more details about the PIP insurance process and how any state laws impact your claim.

Do you need PIP insurance if you have health insurance?

Some readers may want to know, do you need PIP if you have health insurance?

If you live in a state where PIP insurance is legally required, you must purchase the policy regardless of your health insurance status.

You typically use your PIP policy before relying on your health insurance coverage in states where this coverage is required.

However, some states have laws in place that allow your PIP insurance to work in conjunction with your health insurance, like Michigan or New Jersey.

In those states, you can use your health insurance for the medical costs and then turn to your PIP limits for other economic losses, like missing work due to your injuries.

If you live in a state where PIP is offered as an optional policy add-on, know that PIP and health insurance are different from one another.

For example, PIP insurance may cover funeral costs, lost wages, childcare costs, and other home services not covered by health insurance.

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Where is PIP insurance required?

You may be wondering, should I get PIP insurance, and is PIP insurance part of the minimum auto insurance coverage that I have to sign up for?

PIP insurance is part of the state auto insurance requirements in some locations. But it depends on the laws where you live.

Some states follow the tort system for auto insurance. Your right to pursue legal action against another driver is not limited. Whoever caused the accident uses their insurance company to pay for all damages.

PIP is unavailable to drivers in most at-fault or tort states. However, there are some exceptions.

For example, Texas and Washington are at-fault states where companies must offer drivers PIP coverage, but drivers can deny it.

Other states are considered no-fault states. You rely on your own insurance to cover damages resulting from an accident regardless of fault.

Your right to pursue legal action against another driver is limited to certain tort threshold limits.

How does PIP relate to no-fault insurance?

Some level of PIP coverage is required in all no-fault states. So some people refer to it as no-fault insurance.

Other states have optional no-fault laws. If you live in an optional no-fault state, you may be able to purchase PIP coverage as a policy add-on.

The table below shows the PIP insurance requirements in the states where this coverage is legally mandated.

Technically, in Pennsylvania, the coverage is titled Medical Benefits, but it is essentially PIP insurance with a different name.

All of the states in the table above are no-fault states.

But, you can also optionally add PIP auto insurance coverage to your policy if you live in Arkansas, the District of Columbia, Kentucky, Maryland, New Hampshire, South Dakota, Texas, and Washington.

Otherwise, PIP coverage may not be available to you.

How much does PIP insurance cost?

So exactly how much does PIP insurance cost?

According to the database report from the National Association of Insurance Commissioners (NAIC), the countrywide PIP insurance average is $155.65 annually.

The table below shows the pure PIP insurance premiums according to the NAIC in the states where the data is available.

Ultimately, your PIP insurance rates depend on various factors, like your policy coverage limits, the auto insurance deductible levels you choose, and what state you live in.

What is a PIP deductible? It’s an amount you pay out of pocket before your insurance company steps in to cover the rest, up to your agreed-upon limits.

Typically, deductibles range from $100 to $2,000.

Overall, to secure your best possible PIP Insurance quotes, compare policies from multiple top companies and choose the lowest cost without compromising your coverage requirements.

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How does PIP insurance differ from medical payments coverage?

Some people confuse PIP insurance with medical payments or MedPay coverage.

The two insurances are similar, but MedPay is more limited and does not include lost wages or services like childcare costs.

In some states, like Virginia, MedPay is available as an optional policy add-on, while PIP insurance is not available at all.

Should you purchase both PIP insurance and MedPay coverage? Both pay for medical and hospital costs resulting from an accident, regardless of fault.

Typically, you do not need to purchase both MedPay and PIP insurance as the protections may be redundant.

But if your PIP limits are very low, adding MedPay may provide some supplemental coverage.

What are the benefits of buying PIP Auto Insurance?

Personal injury protection (PIP) insurance provides medical coverage for any injuries you or your family experience resulting from an accident. Covered expenses include medical bills, ambulance costs, lost wages, rehabilitation, and childcare (under the right circumstances).

You’re required to buy PIP insurance in 16 states, but it’s available in 21. Whether you’re required to purchase PIP insurance or not, you’ll still need standard health insurance because PIP doesn’t replace that.

We know that understanding auto insurance when you’re deciding what coverages to buy can be complicated. And when it comes to personal injury protection (PIP) insurance, you probably have questions.

What is PIP coverage? How much PIP coverage should I get? Where can you buy it, and how much does it cost? Read this article for answers to your PIP insurance questions.

Before we get started on this PIP insurance overview, use your ZIP code in our rate comparison tool to get free quotes from top companies right now and save.

What is PIP insurance, and what kind of coverage does it include?

So just what is personal injury protection and what does PIP cover? PIP insurance is medical coverage for any injuries occurring after an accident. It covers you and your family, even if you are at fault. PIP only applies after an accident, so you’ll still need health insurance.

With standard PIP insurance, you’ll have some level of coverage for the following medical-related expenses:

• Medical bills
• Ambulance bills
• Emergency room costs
• Prescriptions
• Rehabilitation
• Temporary disability
• Lost wages
• Child care (if you have documentation that proves your injuries mean this is necessary)

Keep reading to find out where you can buy PIP insurance, when it’s required, and how much you might pay.

Does your auto insurance policy automatically include PIP insurance?

The short answer to whether your insurance policy automatically includes PIP insurance is that it depends. PIP is required in some states (we’ll discuss this more later). In those cases, PIP is automatically included in a policy at the minimum required level, though you can increase the amount of PIP coverage you have if you decide to do so.

However, PIP is available in some states where it isn’t required. In that case, you can reach out to your insurance company to add PIP insurance to your policy.

How much will you pay for PIP insurance?

The cost of personal injury protection coverage typically varies between $50 and $200 per month, depending on the level of coverage you choose, your driving record, your location, etc. Comparison shopping is the best way to ensure you’re getting coverage at the best rate for which you qualify. We recommend getting quotes from at least three companies, and you can get started with the rate comparison tool on this page.

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Is PIP insurance mandatory coverage?

Personal injury protection insurance is required coverage in no-fault states. Twelve states across the country are no-fault insurance states, including Florida. The Florida Highway Safety and Motor Vehicles website notes that the state requires a minimum of $10,000 in PIP coverage.

In a no-fault insurance structure, drivers file claims with their own insurance companies after an accident. In the more traditional fault insurance structure, the at-fault driver is responsible for the cost of damages, so their insurance applies.

In addition to the 12 no-fault states, four states using the fault insurance system require PIP coverage. However, the rules are a little different in these four states because you may be able to waive the coverage. One example of this is Maryland. The state requires insurance companies to offer $2,500 of PIP coverage in a standard policy, but drivers can waive it if they choose.

Do you live in a no-fault state?

Since PIP insurance is required in all 12 no-fault insurance states, as well as an additional four states that use fault insurance systems, it’s essential to know whether you live in a no-fault state and what the PIP requirements are. Take a look at this table to find out where PIP is available, which states are no-fault, which states require PIP, and the minimum coverage requirements.

In states where PIP coverage is required, there’s typically a minimum amount you’ll need to carry to drive legally (which we noted in the table). But you can have more than the minimum, should you choose to do so.

If you live in one of the five states where PIP is available but not required, it’s up to you whether or not buying PIP is necessary, given your needs, budget, and existing health insurance coverage.

Do you need PIP insurance if you have health insurance?

Health insurance isn’t a replacement for PIP insurance, meaning if PIP insurance is required (or you choose to buy it), you’ll still need health insurance. Why? Because your PIP insurance only applies to medical expenses that result from an accident. You’ll need health insurance for any other medical bills.

If you live in one of the states where PIP insurance is optional, it’s up to you whether or not PIP is necessary in addition to your health insurance.

PIP Insurance Overview

PIP car insurance is required in 16 states (though you may be able to waive the coverage in a few states), and you can buy PIP coverage in a total of 21 states. Your PIP insurance will ensure you have financial coverage for medical expenses like the emergency room and ambulance bills, temporary disability, lost wages, rehabilitation, and child care.

PIP does not replace health insurance, so you’ll still need both types of coverage if you buy PIP. After an accident, your PIP insurance will cover your medical expenses before your health insurance kicks in, unless you live in states like Michigan. In Michigan, your health insurance will still apply to your medical expenses after an accident, and PIP will cover non-traditional costs like child care and lost wages.

If you’re ready to save on your PIP insurance, the best option is to comparison shop. Take a moment to enter your ZIP code in the tool on this page to get free quotes from companies in your area.

Frequently Asked Questions: PIP Insurance

If you still have questions about personal injury insurance, read through these frequently asked questions for more information.

#1 – What is the difference between PIP and MedPay?

Both PIP and MedPay offer medical coverage for you and your family after an accident, but there are differences between the two in terms of what is covered. MedPay covers most medical expenses, as does PIP, but PIP also offers coverage for costs that result from your injuries but aren’t necessarily medical, like child care and lost wages.

Carrying both PIP and MedPay isn’t necessary, though there’s nothing prohibiting you from having both. Only you can decide which coverage is more appropriate, given your needs (and where you live — recall that PIP is required in 16 states and is available in 21).

#2 – Is there a difference between PIP and bodily liability insurance?

There is a difference between PIP insurance and bodily liability insurance. As we’ve discussed, PIP insurance provides medical coverage for you and your family after an accident, no matter who’s at fault. In contrast, bodily liability insurance provides medical coverage for the other driver(s) and their passengers if you’re at fault in an accident.

#3 – Where can you buy the best PIP insurance coverage?

Geico and Travelers are both companies with reputations for reliable customer service and fair rates for PIP insurance. However, only you can decide on the right insurance company for your needs, based on where you live, your age, your driving record, and more.

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PIP Insurance: The Bottom Line

To review, what is PIP insurance and do you need it? Regardless of fault, PIP covers medical costs, rehabilitation services, and other lost wages resulting from an accident.

If you live in a state where PIP insurance is required, you must add the legal limits to your auto policy.

Otherwise, PIP coverage is an excellent option for people with limited health insurance or those who want extra protection against bodily injury resulting from an accident.

However, in some states, PIP insurance is not available at all.

Ultimately, to find the best PIP insurance company for you, compare multiple policies online.

Now that you know if you need to buy PIP insurance, enter your ZIP code into our free rate tool below to compare quotes from the top auto insurance companies in your region.

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