Does PIP have to be paid back?

Question

The twelve states that require PIP insurance, also known as personal injury protection, are Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. Of these states, 11 are “no-fault” states. Pennsylvania law requires drivers to purchase $5,000 in medical benefits, but does not mention PIP specifically. PIP coverage is also available, but optional, in seven additional states, plus the District of Columbia.… read full answer

PIP States

State	PIP Policy	No-Fault State?	Minimum PIP Coverage
Arkansas	Optional	No	$5,000
Delaware	Required	No	$15,000 per person, $30,000 per accident (plus $5,000 for funeral services)
Florida	Required	Yes	$10,000 per person
Hawaii	Required	Yes	$10,00 per person
Kansas	Required	Yes	$4,500 per person (plus a $2,000 burial benefit or up to $10,000+ for care/lost wages)
Kentucky	Optional	Yes	$10,000 per person, per accident
Maine	MedPay Required	No	$2,000 per person*
Maryland	Optional	No	$2,500
Massachusetts	Required	Yes	$8,000 per person, per accident
Michigan	Required (drivers who receive Medicaid can opt out as of July 2020)	Yes	$50,000 per person
Minnesota	Required	Yes	$40,000 per person, per accident
New Jersey	Required	Yes	$15,000 per person, per accident (up to $250,000 for certain life-altering injuries)
New York	Required	Yes	$50,000 per person (plus a $2,000 death benefit)
North Dakota	Required	Yes	$30,000 per person
Oregon	Required	No	$15,000 per person
Pennsylvania	Medical Benefits Required	Yes	$5,000 per person, per accident
South Dakota	Optional	No	No minimum coverage requirement
Texas	Optional	No	$2,500 per person
Utah	Required	Yes	$3,000
Virginia	Optional	No	$2,000 (plus up to $100/week for lost wages for up to 12 months, in some cases)
Washington	Optional	No	$10,000 per accident
Washington D.C.	Optional	No	$50,000 per person (plus $12,000 per person for lost wages and $4,000 for funeral expenses)

PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.

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Answer 1 · 2020-07-06 14:05:39

WalletHub, Financial Company

@WalletHub • 07/06/20 This answer was first published on 07/06/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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PIP insurance may need to be paid back in states that follow the tort system for car insurance. So-called at-fault states require the person who causes an accident to bear the burden of the costs, which sometimes requires repaying your own insurance company for PIP coverage. In at-fault states, your own PIP coverage pays for medical expenses when the accident first occurs. Once the party that caused the accident is determined, they are responsible for reimbursing the expenses of everyone involved, potentially including the insurance company.

For example, if you are involved in an accident and found to be not at fault, your own PIP coverage will initially pay for your medical expenses. Then, the other driver would need to reimburse you. Once you receive the reimbursement, you pay back your own insurance company the initial payment you received. That way, you won’t be receiving money twice. If you’re found to be at-fault, your insurance coverage will pay for your own medical expenses, as well as any medical expenses incurred by the other driver or their insurance company. In that case, you don’t have to pay back your insurance company.

Drivers in other states do not have to pay back PIP because their states have no-fault auto insurance laws. In no-fault states, each party’s medical expenses are covered by their own PIP insurance if a car accident results in minor injuries. There is no need to determine who caused the accident, and you are not allowed to sue the other driver for compensation unless your injuries are severe. You only have to deal with your own insurance provider, which means repayment isn’t necessary.

Answer 2

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