Personal Injury Protection (PIP) is a type of car insurance coverage that helps pay for medical expenses and other related costs that may result from a car accident, regardless of who is at fault. PIP is also known as “no-fault” insurance because it covers injuries to the policyholder and their passengers, regardless of who caused the accident. It is intended to provide financial protection and help cover the costs of medical treatment and lost wages in the event of an accident.
How PIP Insurance Works
PIP insurance works by covering the medical expenses and other related costs that may result from a car accident. In the event of an accident, the policyholder can file a claim with their insurance company to receive financial assistance to cover the costs of medical treatment, lost wages, and other related expenses. PIP coverage typically begins at the point of the accident and continues until the policyholder’s injuries are fully recovered or the policy limit is reached.
What Does Personal Injury Protection Cover
Personal Injury Protection (PIP) coverage typically includes:
- Medical expenses: PIP covers the cost of medical treatment and rehabilitation related to injuries sustained in a car accident. This includes hospital and doctor bills, as well as the cost of prescription medications and medical equipment.
- Lost wages: PIP can help cover the cost of lost wages if the policyholder is unable to work due to injuries sustained in a car accident.
- Other related expenses: PIP may also cover other related expenses such as transportation to medical appointments, funeral expenses, and in some cases, the cost of hiring someone to perform household tasks or take care of children while the policyholder is recovering from their injuries.
What PIP Insurance Does Not Cover
PIP insurance does not cover the following:
- Damage to the policyholder’s vehicle: PIP does not cover the cost of repairing or replacing the policyholder’s vehicle. For this, the policyholder will need to purchase collision or comprehensive coverage.
- Property damage: PIP does not cover the cost of repairing or replacing property that is damaged in a car accident. For this, the policyholder will need to purchase property damage liability coverage.
- Vehicle theft: PIP does not cover vehicle theft. Comprehensive coverage (if you’ve added it to your policy) helps pay to replace your car if it’s stolen.
- Medical expenses that exceed coverage limits: Medical bills or lost wages that exceed your PIP coverage limits won’t be reimbursed. However, some no-fault insurance states offer an exception. You may be able to file personal-injury lawsuits against other drivers if they’re responsible for seriously hurting you or someone else in your car, or if your medical bills exceed a certain dollar limit.
States Where PIP Is Required
The following states require Personal Injury Protection (PIP) coverage:
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
- Pennsylvania
- Utah
Minimum Requirements by State:
| State | Minimum PIP Coverage |
|---|---|
| Delaware | $15,000/person, $30,000/accident |
| Florida | $10,000 |
| Hawaii | $10,000 |
| Kansas | $4,500 |
| Kentucky | $10,000 |
| Maryland | $2,500 |
| Massachusetts | $8,000 |
| Michigan | $50,000 |
| Minnesota | $40,000 |
| New Jersey | $15,000 |
| New York | $50,000 |
| North Dakota | $30,000 |
| Oregon | $15,000 |
| Pennsylvania | $5,000 |
| Utah | $3,000 |
States Where PIP Is Available But Not Required
The following states offer Personal Injury Protection (PIP) coverage but it is not required:
- Arkansas
- New Hampshire
- South Dakota
- Texas
- Virginia
- Washington
Should I buy PIP insurance?
Whether or not you should buy Personal Injury Protection (PIP) insurance depends on your individual circumstances and the laws in your state. If you live in a state where PIP is required, it is generally necessary to purchase PIP coverage to protect yourself financially in the event of an accident. If you live in a state where PIP is optional, you may want to consider purchasing PIP coverage if you do not have health insurance or if you have high out-of-pocket medical expenses. It is always a good idea to consult with your insurance agent or broker to determine the best coverage options for your specific needs.
FAQs
Do I need PIP if I have health insurance?
It is generally a good idea to have both Personal Injury Protection (PIP) insurance and health insurance, even if you live in a state where PIP is not required. PIP can help cover the costs of medical treatment and lost wages resulting from a car accident, while health insurance can help cover the costs of medical treatment for other types of injuries or illnesses.
What is the difference between bodily injury and personal injury protection?
Bodily injury liability coverage is a type of car insurance that covers the medical expenses and related costs for injuries sustained by the other party in a car accident if the policyholder is found to be at fault. Personal Injury Protection (PIP) is a type of car insurance that covers the medical expenses and related costs for injuries sustained by the policyholder and their passengers, regardless of who is at fault.
Does using PIP raise your insurance?
Using Personal Injury Protection (PIP) insurance may result in an increase in your car insurance premiums. However, the extent to which your premiums will increase will depend on a number of factors, including your insurance company, the severity of the accident, and the amount of PIP coverage you have. It is always a good idea to consult with your insurance agent or broker to determine the potential impact on your premiums.
What happens if you don’t have PIP?
If you do not have Personal Injury Protection (PIP) insurance and you are involved in a car accident, you may be responsible for paying for your own medical expenses and lost wages out of pocket. If you are at fault for the accident, you may also be responsible for paying for the medical expenses and other related costs of the other party. In some states, you may be able to file a personal injury lawsuit against the other driver if they are found to be at fault for the accident and you have sustained serious injuries. However, this process can be time-consuming and costly, and the outcome is not guaranteed. It is generally a good idea to have PIP coverage to protect yourself financially in the event of an accident.
