CarInsurance.com Insights
- PIP requirements extend well beyond traditional no-fault states. 17 states require PIP: 12 no-fault states and five at-fault states.
- PIP can replace lost income and pay for household help; health insurance and MedPay can’t.
- In New Jersey, letting your health insurer pay first usually lowers your premium, but drivers on Medicare or Medicaid can’t choose it.
Personal injury protection (PIP) helps pay your medical bills and lost wages when you or your passengers are hurt in a car accident, no matter who caused it.
In some states, PIP is required. In others, it’s optional or not sold at all. And what it pays varies widely depending on where you live.
What is personal injury protection (PIP)?
Personal injury protection is often called “no-fault insurance” because it pays without anyone having to prove who caused the crash. You file the claim with your own insurer, and your own policy pays.
Unlike bodily injury liability insurance, which pays for the medical bills of other drivers and passengers injured in an accident you’ve caused, PIP coverage pays for your own expenses.
What does personal injury protection (PIP) cover?
PIP insurance pays a per-person benefit for injuries you and others specified in your policy sustain in an auto accident. Basic personal injury car insurance coverage is for the insured’s own injuries on a first-party basis, without regard to fault.
Parties typically covered by PIP include:
- Policyholder
- Policyholder’s relatives in the same household
- Passengers (if they don’t have their own PIP coverage to place a claim under)
- Other authorized drivers of your insured vehicle
- Policyholders and family members, if they are injured while riding in someone else’s car
- Policyholders and family members if struck by another vehicle when a pedestrian (in some states).
The exact benefits offered by PIP vary by state, and there may be a deductible due before the benefits kick in. Coverage varies widely among states, so the terms of your policy will note your specific benefits. Personal injury protection coverage typically includes:
- Medical expenses: May include reasonable charges for medical, hospital, surgical, nursing, dental, ambulance and x-ray services. Necessary medications, medical supplies and prosthetic devices may also be covered.
- Loss of essential services (also sometimes referred to as disability or replacement services)
- Loss of income
- Funeral expenses
- Survivor’s loss: Some policies compensate an individual’s heir(s) if the person died from accident-related injuries.
Your PIP limits set the maximum amount that can be paid per person for any combination of covered expenses. PIP limits vary by state; some states allow you to choose your PIP limits, and others set it to a certain amount, like $10,000, unless you choose to buy additional PIP coverage.
Is personal injury protection coverage mandatory?
It depends on your state. In no-fault states, personal injury protection coverage is required (typically referred to as no-fault coverage). In other states, it’s optional, if available at all.
What states require personal injury car insurance?
12 states are considered no-fault and require PIP coverage:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
Five fault-based states also require PIP coverage and there are five states where it is optional coverage.
These states are at-fault states that still require PIP:
- Arkansas
- Delaware
- Maryland
- Oregon
- Texas
Optional PIP:
- New Hampshire
- South Dakota
- Virginia
- Washington
- Wisconsin
The District of Columbia is neither a no-fault state nor an add-on state. Drivers are offered the option of no-fault or fault-based coverage. Still, in the event of an accident, a driver who initially chose no-fault benefits has 60 days to decide whether to receive those benefits or file a claim against the other party.
What happens if I don’t have personal injury protection coverage?
Without PIP, you might need to use your health insurance, medical payments coverage or the at-fault driver’s liability insurance to pay your medical bills after a crash. Who pays depends on who caused the accident and what coverage is available. In states that require PIP, driving without it can also lead to penalties or problems with your auto insurance.
Speak with a friendly agent and get your quote in minutes!
How does PIP insurance work with other insurance?
PIP insurance may include some of the same coverage as your health insurance or Medical Payments (MedPay) policy. However, PIP coverage is written explicitly for car-related injuries, sometimes excluded from health insurance policies. PIP insurance covers several additional expenses that MedPay does not.
Medical payments and PIP are similar, but PIP is typically more comprehensive and pays for items such as lost wages that medical payments will not.
Medical payments coverage strictly pays for reasonable medical expenses, such as hospital, dental, nursing and X-ray bills incurred within a specified period after your accident (usually the first three years).
PIP typically covers reasonable medical expenses, loss of essential services and lost wages. The exact benefits offered by PIP coverage differ significantly by state, and a deductible and/or co-payment may be due before your benefits start up.
How much PIP insurance do I need?
When determining how much PIP insurance you need, consider how you and your family would be affected financially after a car accident that caused injuries.
Your state-required PIP minimum coverage amount is likely sufficient if you and family members in your household already have health insurance with excellent benefits. But remember that extra PIP protection will kick in to help cover lost income and pay for household service expenses.
If you and your family don’t have health insurance or a plan that doesn’t offer all the benefits of PIP, consider getting as much PIP coverage as you can afford.
The right PIP limit depends largely on how much of your medical expenses your health insurance would cover after a car accident. If your health plan has a high deductible, significant copays or limited coverage, choosing more than your state’s minimum PIP limit may provide valuable extra protection.
What are some PIP-related coverages?
Basic PIP is only the beginning. Depending on where you live, you can raise your limit, increase the share of each bill PIP pays, or choose who pays first after a crash. The names change from state to state (and carrier to carrier), so here’s what each one actually does.
Additional PIP
Additional PIP lets you increase your coverage beyond your state’s required limit. In Kentucky, for example, you can buy coverage above the basic $10,000 PIP amount. Availability varies by state and insurer, so check with your carrier to see what options it offers.
Extended PIP (Florida)
Florida’s basic PIP coverage pays 80% of medical expenses and 60% of lost wages, up to the $10,000 policy limit. Extended PIP increases those percentages to 100% of medical expenses and 80% of lost wages, but the overall $10,000 limit stays the same. In other words, extended PIP pays a larger share of covered expenses; it doesn’t give you a larger pool of benefits.
Guest PIP (Kentucky)
Kentucky is a choice no-fault state, so you can reject the no-fault system in writing and preserve your right to sue after an accident. However, rejecting no-fault also means giving up your own basic PIP benefits unless you choose to purchase them separately.
If everyone in your household rejects no-fault, your policy must still include guest PIP. This coverage provides basic PIP benefits to passengers in your vehicle and to pedestrians, even though you and your household members have opted out.
New Jersey’s PIP options
In New Jersey, you make two separate PIP decisions: how much coverage you want and which insurer pays first: your auto insurer or your health insurer.
| Option | What it covers | Who pays first |
|---|---|---|
| Full PIP Primary | Medical expenses, income continuation, essential services, death benefits and funeral expenses | Your auto insurer |
| Full PIP Health Primary | Same as Full PIP Primary | Your health insurer |
| Medical Only PIP Primary | Medical expenses only | Your auto insurer |
| Medical Only Health Primary | Medical expenses only | Your health insurer |
The two Health Primary options usually cost less. But they aren’t available if Medicare or Medicaid is your primary health insurance, or if you’re an active-duty military member. Some private health plans don’t cover car accident injuries at all. If you’re not sure what yours covers, choose one of the PIP Primary options.
Frequently Asked Questions: PIP
Do I need PIP insurance if I have health insurance?
If your state requires PIP, yes. In most of those states, PIP also pays before your health insurance does. Even where it’s optional, PIP offers benefits a health plan won’t, such as coverage for lost wages and funeral costs.
Does PIP insurance cover pain and suffering?
No. PIP insurance doesn’t reimburse you for pain and suffering after a car accident.
What is the PIP definition of a resident relative?
The definition of a resident relative can vary depending on state laws and the language of an auto insurance policy (terms).
A typical insurance policy defines a resident as someone who has a physical presence in your household and continues to live there. Unmarried dependent children, while temporarily away from home to attend college, are usually still considered residents if they intend to continue living in their parents’ household during breaks from the school year. A relative is someone related to you, so a relative resident would be someone related to you who lives in your home.
Who will be considered a resident relative for your personal injury protection (PIP) coverage will depend upon the definition of a “resident relative” your state has in place and the language of your policy regarding this term and your PIP coverages and exclusions.
In general, if you have a child who lives with you, he or she would usually be considered a resident relative and be covered by your PIP insurance. If you had a child who moved out and lived on his or her own, then this child would not usually be covered as a resident relative any longer under your PIP coverage.
Does a resident relative’s own policy affect your PIP coverage?
If your resident relative has their own insurance policy, your PIP coverage may not extend to them, depending again on state laws and your policy’s terms. Read over the terms of your policy, specifically the PIP portion.
The bottom line
PIP can be an important part of your financial protection after a crash, but how valuable it is depends on your state’s rules and the other insurance you already have. Before choosing a limit, look at how your health insurance would handle accident-related medical bills and whether you could comfortably absorb deductibles, copays or lost income while recovering.
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs
