Personal injury protection (PIP) is insurance that is required in specific states to cover injury-related expenses for you and your passengers after an accident, regardless of fault. PIP covers medical bills, lost wages, childcare, and other expenses resulting from an accident. It is commonly required in no-fault states.
Personal injury protection (PIP) insurance covers medical expenses, lost wages, and household expenses after a covered driver or their passengers are injured in a car accident. PIP is a versatile type of insurance because it covers both medical bills and indirect costs stemming from injuries sustained in a car accident. PIP stands for personal injury protection, and it can be used after any crash, regardless of who was at-fault.… read full answer
What PIP Insurance Covers
Medical expenses
Funeral expenses
Lost wages
Child care and household expenses
Survivors’ loss for dependents
Named drivers on the policy and their passengers
The exact details of PIP coverage may vary depending on the state and policy. For instance, some states may require you to have a deductible, and other states require specific PIP limits for funeral expenses, rehab expenses, or loss of income.
For more information and to see if PIP is required in your state, check out WalletHub’s complete guide to personal injury protection.
You need personal injury protection (PIP) insurance if you live in one of the 12 states that require it. You should also get PIP if your health insurance has low coverage limits or if you drive with passengers who could hold you responsible for their medical expenses in the event of an accident.… read full answer
In the 20 states (plus Washington, D.C.) where it is required or offered as optional protection, PIP covers medical expenses for the policyholder and his or her passengers after an accident, no matter who was at fault. However, PIP is not available at all in the 30 other states.
Always check with your insurance company or an agent for specifics on what coverage is required or available in your state before you determine what to include in your policy.
What Does PIP Cover?
Ambulance fees
Health insurance deductibles
Medical treatments
Surgery
Rehabilitation
Prescriptions
Lost wages
Home care such as cleaning or child care
Funeral costs
If you are in a car accident, PIP often works in conjunction with your health insurance coverage. Most health insurance deductibles must be paid before benefits start to be paid out, but your PIP may have a cheaper deductible, or no deductible at all.
How Does PIP Work With MedPay?
PIP insurance may overlap with another kind of car insurance known as Medical Payments, or MedPay. Like PIP, MedPay covers the costs of medical care resulting from of an accident, no matter who was at fault. Also like PIP, MedPay covers injuries to any passengers in your car. However, it does not pay for lost wages, rehabilitation or home-care services, which PIP would cover.
The way PIP and MedPay may work together depends on your state’s laws. If you live in one of the 12 states that require PIP, MedPay could be redundant. State limits on PIP vary widely, from $3,000 in Utah to New York’s $50,000 requirement. If your state has a low upper limit on PIP, MedPay coverage could act as a beneficial supplement. In a couple states – namely, Maine and New Hampshire – MedPay is used instead of PIP.
PIP insurance works by compensating drivers up to a given limit for medical bills, rehabilitation costs, funeral costs, lost wages, and other car accident costs. PIP insurance is meant to simplify claims by requiring drivers involved in an accident to file with their own insurer, instead of establishing fault in court.… read full answer
Examples of How PIP Insurance Works
New York: PIP is required in New York, and drivers must have at least $50,000 in coverage. This includes coverage for medical bills, as well as a $2,000 death benefit for family members of someone killed in a car accident. PIP will also cover up to 80% of a victim’s lost income if they are unable to work (up to $2,000) and will provide a $25 daily payment to cover routine activities like housework.
Florida: Drivers in Florida must have at least $10,000 of PIP coverage. This means your medical expenses are covered up to $10,000, or 80% of the total bill, whichever comes first. This coverage includes a $5,000 death benefit and a payment for 60% of lost wages, up to $10,000.
PIP Requirements
PIP insurance is only required in 12 states, but you can purchase it as an add-on in other states as well. It may be useful to purchase PIP coverage even if it isn’t required since it is relatively inexpensive and will help cover your medical expenses.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.