If you’re a New Yorker and have car insurance in the state, you may have noticed a line on the declarations page of your auto insurance policy for “personal injury protection” (PIP) coverage. Personal injury protection in New York is a mandatory part of your policy. So what is PIP, and how does New York PIP work?
What is PIP insurance?
Your car insurance policy in New York consists of several parts. At its most basic, it features liability coverage, which pays for damages to the other car and medical and other costs if you hit someone and you are at fault. Your New York auto policy will also require statutory uninsured motorist bodily injury coverage to help cover your injuries and your passengers’ injuries if someone hits your vehicle and does not have insurance.
In addition to liability and uninsured motorist coverage requirements, some states, such as New York, require PIP coverage. PIP generally covers medical expenses, lost wages and essential services for you and your passengers, regardless of who was at fault in the accident.
How does New York PIP work?
If you have a New York car insurance policy and are injured in an auto accident, PIP coverage will pay your medical expenses up to your policy’s limit regardless of fault. New York is a no-fault state; therefore, your PIP coverage pays first. However, “no-fault” insurance doesn’t mean that fault is never determined from an auto accident. While your PIP coverage pays first, if the other party caused the crash, their liability coverage should take care of your medical bills after fault is confirmed.
How does New York PIP insurance work?
- It helps pay for medical costs and lost wages incurred in an accident.
- It helps pay for essential services if you cannot complete household responsibilities due to an injury from an auto accident.
How is New York PIP insurance explained? Here is an example: let’s say you run a red light and sideswipe a car in the intersection waiting to turn left. Both drivers received minor injuries. Your own PIP insurance coverage will pay for your injuries up to your policy limits. The other drivers’ PIP would cover their injuries until it is confirmed you were at fault in the accident. Then, your liability coverage would likely pay for the other driver’s medical costs.
Keep in mind that the minimum PIP coverage amount is $50,000 in New York, but you can add Additional PIP coverage and Optional Basic Economic Loss (OBEL) coverage. Additional PIP extends your PIP coverage another $50,000, and OBEL offers an additional $25,000 to your basic, $50,000 coverage amount to help towards instances such as lost earnings.
Is PIP required in New York?
PIP insurance in New York is mandatory — that is, you are required by law to carry it as part of your auto insurance policy. Almost every state in the U.S. requires motorists to have a certain amount of minimum car insurance to drive legally, including liability coverage. In New York, minimum coverage requirements are
- $25,000 for bodily injury liability per person in an accident
- $50,000 for bodily injury liability per accident
- $10,000 property damage liability per accident.
- $50,000 personal injury protection (PIP)
- $25,000 statutory uninsured motorist bodily injury per person
- $50,000 statutory uninsured motorist bodily injury per accident
When referring to uninsured motorist statutory coverage, that means it only provides coverage if the accident were to occur within New York. Should you cross state lines, statutory coverage would not apply. Supplemental uninsured motorist coverage is another coverage option available on a New York car insurance policy and offers uninsured and underinsured motorist coverage outside of the state.
How much does PIP cost in New York?
When you apply for car insurance, your insurer will give you an insurance quote that estimates the premium cost. These quotes include information about your vehicle, such as its age, make and model, as well as information about you, including your age, credit rating and marital status.
Part of that premium calculation will be for PIP coverage, but the cost will vary depending on those factors and more. You should be able to find out exactly how much you are paying for PIP by looking at your policy’s declarations page, which includes details about your policy.
Key things to note about PIP insurance in New York
- PIP is a type of insurance that pays for your medical costs and lost wages in an accident, regardless of who is at fault.
- New York PIP coverage is a mandatory part of your auto insurance.
- Minimum PIP covers the insured for up to $50,000 for injuries incurred in a single accident.
- You can purchase more than the $50K minimum PIP coverage if you wish.
- In addition to medical costs and lost wages, PIP coverage in New York might pay for household costs and transportation to medical visits.
- There are situations where you cannot use PIP, including if you are driving while intoxicated, riding in an ATV or are injured while committing a felony.
Frequently asked questions
How and when do I file a PIP claim?
According to the New York State Department of Financial Services, you can file a PIP claim up to 30 days after an accident if injuries are involved — either your own or those of passengers in your vehicle. You would file this claim no matter whose fault the accident was since PIP extends coverage regardless of fault. PIP insurance in New York is designed to be paid swiftly, without the need for lengthy court cases. In fact, your ability to sue the other driver is limited in no-fault states such as New York.
Are PIP and medical payments the same?
These coverage types are similar in that both can pay for medical costs for you and your passengers. But there are differences. MedPay pays for medical purposes only — health insurance deductibles, hospital visits, surgery and other qualified medical charges. PIP will pay for expenses, but also rehabilitation, lost wages if you are out of work due to the accident and household help while you’re recovering from your injuries.