PIP Insurance

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Personal injury protection, or PIP insurance, pays for medical expenses and covers lost wages for you and anyone in your car in the event of an accident. It’s mandatory in no-fault states and optional in others.

What is PIP insurance?

Are you wondering, “what is personal injury protection?” Your car insurance policy breaks down into various sections that cover damage and injury. Coverage that protects the other car and its occupants are usually mandatory; coverage that protects you, your passengers, and your car may or may not be required. Since personal injury protection (PIP) protects you and your passengers, it falls into the latter category.

PIP coverage kicks in regardless of who is at fault in an accident, which is why it is mandatory in no-fault states. If you cause an accident, your liability insurance will cover the injuries of people in the other car, but you will need PIP to pay for medical costs incurred by you or your passengers. If you frequently drive with others in your car, it is a good idea to consider adding PIP coverage to your policy.

What does personal injury protection cover?

In general, PIP covers medical costs, including charges for ambulance care, x-rays, surgical costs, diagnostics, nursing care, rehabilitation and more. Unlike bodily injury liability coverage, PIP also covers lost wages while you are in the hospital, and it covers if you need someone to come into your home and do household tasks if you are unable to after an accident.

PIP does not cover damage to your car or the other car. For example, if you slide on an icy road and damage a fence, PIP coverage would not pay to fix your vehicle. PIP also does not cover compensation for pain and suffering.

PIP coverage has a maximum cap that varies from state to state. For example, in New York, you can claim up to $50,000  of PIP coverage, and a $2,000 maximum for loss of earnings. States may also regulate who is eligible to make a PIP claim. Again, in NY, for example, motorcyclists, scooter riders or those intoxicated cannot file a claim under PIP.

How much does PIP cost?

Many factors go into determining the cost of your car insurance premiums. Your age, gender, marital status, the make and model of your car, your location, how much coverage you choose, accident history and more all play a role.  Because of these factors, PIP costs can vary drastically.

Which states require PIP?

Some states are considered no-fault, meaning that each driver must pay for their own expenses after an accident. PIP insurance is designed to cover medical expenses and lost wages for yourself and your passengers. Therefore, no-fault states typically require drivers to carry PIP coverage.

However, some states may allow you to opt-out if you can prove you have medical coverage, such as Medicare or private health insurance. You will likely have to opt-out in writing.

*Medical coverage may be required but not PIP insurance

Do I need personal injury protection?

If your state is a no-fault state and requires PIP coverage, you will have to include it on your car insurance policy. But even if it is optional, it may be a good idea to consider it.

For example, if you do not have a very robust or comprehensive health insurance policy, personal injury protection coverage can work with your health insurance to provide more comprehensive coverage that will likely cover your injuries from an accident.

PIP is also a good idea if you often drive with passengers in your car, since it covers anyone riding with you. Since you cannot be sure what kind of health insurance your passengers have, PIP provides a layer of assurance their medical bills will be covered in an accident.

Frequently asked questions

What is personal injury insurance?

PIP insurance is a type of coverage that pays for you and your passengers’ medical expenses and lost wages. PIP may be mandatory in your state.

Is PIP mandatory in my state?

To find out if you are required to have PIP, check our list above or go to the comprehensive listing offered by the Insurance Information Institute, which lists all the coverages required for each state.

Will PIP pay for my lost wages if I am in the hospital?

Yes, up to the maximum allowed by the policy. It may fully cover all your lost wages, but may be helpful if you are unable to work.

What about rehabilitation services? Does PIP pay for that?

It may. You will want to talk to your insurance agent and read your policy carefully to find out exactly what coverage you have from your PIP insurance.

Is PIP different from bodily injury liability?

Yes. Your medical injury liability coverage is for the driver and passengers in the other car, in the case of an accident. PIP, meanwhile, pays for medical costs incurred by you and your passengers.

Is PIP the same as MedPay?

Not exactly. MedPay coverage pays solely for medical costs after an accident. PIP will pay for those costs, but also for rehabilitation, psychiatric costs, lost wages and other accident-related losses. It also pays a death benefit, which pays towards funeral expenses.

Written by
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has five years of experience writing for insurance domains such as Bankrate.com, Coverage.com and Thesimpledollar.com. She has also written extensively for consumer websites including reviews.com and myslumberyard.com. Prior to that she worked as a writer in academia for several decades.
Edited by
Insurance Editor