Buying Personal Injury Protection (PIP) Auto Insurance Coverage: What You Need To Know in 2023

What is PIP insurance? Personal injury protection (PIP) is a type of policy that provides coverage for injuries and associated medical costs after an accident. It covers the driver and any of their passengers injured or killed in the collision. 

PIP auto insurance is required in no-fault insurance states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, and Utah. Other states, including Pennsylvania and Maine, require medical payments (MedPay) coverage instead of PIP. 

If you need to buy PIP insurance, this guide will tell you everything you need to know, including what PIP insurance is, how personal injury coverage works, and where you can find the most affordable policy. Keep reading to find the minimum PIP requirements in your state.

What is personal injury protection insurance?

Personal injury insurance protects you from paying out-of-pocket medical and healthcare costs after auto collisions. It also pays for associated losses after an accident, including lost wages and childcare if you cannot work or care for your family during recovery. 

PIP acts like health insurance after an accident, but this policy goes beyond medical coverage and rehabilitative care. Take a closer look at this example of personal injury protection insurance to see how coverage works.

Example of Personal Injury Protection Insurance

If you live in New York, you are required to carry a minimum of $50,000 in PIP. This coverage extends to the driver and all their passengers. In the event of an accident, PIP would pay for each injured party’s medical treatments up to $50,000.

For example, say you cause an accident in New York that results in injuries that cost you and your passenger $55,000 each. PIP would cover $50,000, and each of you would be responsible for the remaining $5,000 (minus the deductible).

Some states place restrictions on PIP benefits. In New York, you have 45 days to submit your medical bills to the insurance company. If you wait too long, you will need to submit written explanations from yourself and your medical provider to cover any payments.

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What does personal injury protection cover?

Personal injury protection coverage pays for you and your passengers’ injuries, medical costs, and rehabilitative care up to your policy’s limit. 

Coverage options and availability vary by state, but most PIP insurance policies cover the following:

• Ambulance transportation
• Operations and hospitalization
• Ongoing physical therapy and rehabilitation
• Funeral expenses
• Accidental death benefits
• Permanent injury benefits

PIP typically covers any dental, chiropractic, and optical treatments you might need after a collision, but you’ll be responsible for paying any costs that exceed your policy limits.

If you’re unable to work after an auto collision, PIP car insurance will cover your lost wages as you recover or find new employment. PIP also covers childcare expenses and household services while you heal, such as nannies, house cleaning services, and lawn care.

If you should die in a collision, PIP pays for funeral services and replacement income for your surviving dependents. In addition, dependents may also be eligible for additional death benefits.

What PIP Insurance Does Not Cover

PIP coverage is designed to pay for medical costs and associated losses from injuries or death in an auto accident.

PIP insurance does not cover the following:

• Damage to your car or property
• The other drivers’ injuries or property
• Injuries from accidents caused while running from law enforcement or committing a crime

PIP auto insurance is not liability coverage — it will not cover your vehicle or any other property damaged in an at-fault accident. Instead, the policy strictly covers injuries and associated medical costs and death benefits. 

Minimum PIP Requirements by State

Your state auto insurance minimums will determine how much (if any) personal injury insurance you should carry. For example, only 12 states require drivers to have PIP, while seven states provide a minimum amount of personal injury coverage, which eligible drivers can opt out of if they qualify.

State laws set the amount of PIP insurance you have to carry, but you can choose higher coverage levels if needed.

Find your state below to determine if you meet the minimum PIP requirements.

You will be required to carry PIP insurance if you live in a no-fault state. If you live in a state where coverage is optional, your state laws may have different limits and requirements for dropping coverage.

For example, Michigan drivers must be enrolled in Medicare to drop PIP insurance, and drivers in Pennsylvania or Maine are required to carry MedPay coverage instead of PIP. 

Can’t find your state on the list? Then PIP insurance isn’t required where you live. However, you can still buy PIP to supplement your existing auto and health policies if coverage is available where you live. 

How much does PIP insurance cost?

You can expect to pay between $5 and $50 per month for PIP, but rates will vary by state.

PIP insurance costs are built into the minimum liability costs in your state, and your rates will increase if you choose to carry more than the state minimum. Rates will also be more expensive if your state has higher accident rates and traffic fatalities.

Because state laws determine so much about PIP insurance coverage and costs, be sure to shop around with at least three local companies to see which can offer you the best rates in the state. 

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How does PIP work with other types of car insurance?

PIP works as a part of your minimum auto insurance coverage if you live in a no-fault state. You will typically file a claim with your insurance company before using health insurance or the at-fault driver’s liability insurance.

PIP vs. No-Fault Insurance

Personal injury and no-fault insurance are the same. Insurance companies often refer to personal injury protection as no-fault insurance, especially if you live in a no-fault state.

With no-fault insurance, injured drivers are not allowed to sue at-fault drivers unless their injuries exceed the state minimums.

PIP vs. Liability-Only Insurance

Personal injury and liability car insurance is not the same thing. PIP pays for your injuries and associated economic losses after a car accident. PIP also covers each of your passengers.

On the other hand, liability-only insurance pays for injuries and damages sustained by other drivers in an accident you cause. For example, drivers in no-fault states can file a claim with the at-fault driver’s liability insurance only after their medical costs exceed their PIP policy limits.

Liability insurance is also required in 48 states, while only 19 states have PIP requirements or options.

PIP vs. MedPay Coverage

Some states require MedPay coverage instead of PIP. While both policy types cover medical bills, only PIP provides additional coverage for lost wages, rehabilitation, funeral costs, and permanent injury benefits.

You may choose to carry PIP along with your MedPay minimums if policies are available in your state.

Do you need PIP if you have health insurance?

You must carry personal injury insurance if you live in a no-fault state, regardless of whether you have health insurance coverage. If you’re injured in an accident, you will file a claim with PIP before filing with your health insurance company.

Some states have laws that allow drivers to use PIP to work with their health insurance coverage. For example, drivers in Michigan can use health insurance to pay for medical costs and PIP to cover monetary losses.

If you live in a tort (at-fault) state, you won’t need PIP. Coverage may also not be available where you live.

However, you should consider buying PIP insurance if it’s available and you are the sole provider for your family or dependents. Health insurance does not cover lost wages or childcare, and most states provide additional benefits for permanent injuries after auto accidents.

How do you file a PIP claim?

The easiest way to file a PIP insurance claim is online or over the phone. Depending on your auto insurance company, you may be able to file a claim directly through its mobile app.

State laws also dictate how to file a PIP claim. Some states may set a limited number of days to file a claim and recover medical costs. Other laws require pre-approval of a treatment plan or limit which doctors you can see. 

Read your insurance policy closely or speak with an agent to better understand your insurer’s PIP claim process requirements. If you sustained injuries from a severe auto accident, you might need to speak with an attorney before filing any claims.

Do you need PIP insurance?

You need PIP insurance if you live in one of the 12 no-fault insurance states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, and Utah. You will need to carry MedPay instead of PIP if you live in Maine, New Hampshire, or Pennsylvania.

Even if PIP isn’t required where you live, you may still want additional medical and financial coverage. Some states may also allow you to use personal injury with health insurance, so research your local insurance laws before you buy or opt-out of coverage.

In most states, PIP insurance rates are affordable and average between $5 and $50 per month. If coverage is available where you live, it is worth shopping around with local companies to see if you can afford the additional benefits of PIP insurance. Compare rates right now with our comparison tool below and get free quotes from companies in your neighborhood.

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