Personal Injury Protection (PIP) Insurance

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.

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 a regular 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 ​​are there any state requirements for having PIP?

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 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.

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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