Personal Injury Protection: What Is It, and Do You Need It?

Personal injury protection can cover medical bills, lost wages, and more if you’re in a car accident — regardless of who’s at fault.

Aly J. Yale
Written byAly J. Yale
Aly J. Yale
Aly J. Yale
  • National Association of Real Estate Editors member

  • Bylines include Forbes, Bankrate, and CBS News

Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated November 28, 2024

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Personal injury protection (PIP) is a type of auto insurance that some states require drivers to carry. In states where it’s not mandatory, PIP may still be an important coverage to consider for added protection. It helps pay for things like medical costs, lost wages, and other expenses if you or a passenger is hurt in an accident.[1]

Depending on where you live, PIP may be automatically included in your standard auto insurance policy. But you may be able to opt out. Here’s what you should know about personal injury protection coverage and who might need it.

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Key components of personal injury protection coverage

Personal injury protection covers medical bills and related expenses for you or any passengers after a wreck. PIP also provides coverage if you’re hurt as a passenger in someone else’s car or if you’re hit by a motor vehicle while walking or riding your bike.

PIP can cover the following costs after an accident:

  • Medical expenses: If you need medical treatment as a result of an automobile accident, PIP kicks in and covers some costs (minus your deductible).

  • Lost wages and income protection: If the accident has rendered you unable to work for a time, PIP can often compensate you for lost wages and ensure you stay afloat.

  • Funeral expenses: Should someone pass away in an accident or due to an injury sustained in the accident, PIP covers the expenses for their burial, cremation, and funeral.

  • Rehabilitation costs: If an accident requires you to enter physical or occupational therapy to recover, PIP typically covers these costs.

  • Care assistance: PIP usually provides coverage for home medical assistance during your recovery from an accident.

  • Essential services: If you’re unable to do “essential services” that you’d normally do for your household — like caring for children or cleaning the house — PIP helps cover the costs of hiring someone to provide these services in your place.

Keep in mind that PIP typically covers the above expenses and services regardless of who’s at fault for the accident.

What personal injury protection doesn’t cover

Personal injury protection provides a lot of financial help if you’re in an accident, but it doesn’t cover everything.

PIP typically won’t cover the following:

  • Damage to your vehicle or personal property

  • Damage to other peoples’ property or vehicle

  • Theft

  • Medical expenses above your policy’s coverage limits

  • Injuries sustained in an accident while committing a crime

  • Injuries sustained in an accident while driving for work, like driving for a rideshare

  • Injuries to other drivers or parties

  • Pain, suffering, and emotional distress

Some policies also have medical payments coverage, known as MedPay. This is typically just for medical expenses, while PIP also covers other expenses like funeral expenses and lost wages.[2]

The same goes for health insurance, which covers specific medical expenses and services. But it won’t cover things like lost income due to an injury or the cost of child care.

How personal injury protection works

If you have PIP coverage and get injured in an accident, you’ll need to file a claim to get compensated.

Follow these steps:

  • illustration card https://a.storyblok.com/f/162273/150x150/1daf58783c/contact-us-96x96-orange_023-customer-support.svg

    1. Contact your insurance company

    They’ll let you know where to start the process, which could be over the phone, on an app, or through the insurer’s website.

  • illustration card https://a.storyblok.com/f/162273/150x150/0f334ec089/insurify-icons-auto-blue-96x96_045-document.svg

    2. File the claim

    You’ll need to provide details about the accident, such as when and where it happened, who was involved, and the nature of your injuries.

  • illustration card https://a.storyblok.com/f/162273/150x150/c231786ab1/insurify-icons-auto-green-96x96_036-medical-report.svg

    3. Provide documentation

    You might not have all of these at the time of filing, but your insurer will eventually need medical bills, invoices, and receipts for any covered losses. If you’re filing for lost wages, you’ll also need to provide evidence of missed work from your employer.

Stay in touch with your insurance company after filing your claim. They may need more information when investigating your claim and processing your payments. The quicker you respond to these requests, the faster they can compensate you.

The exact timeline for these claims depends on your insurer and state. But insurers typically have a few weeks to respond. For example, in Texas, insurance companies have 15 days to say they received your claim and 15 days to make a claim decision after receiving the required documentation.[3]

How PIP works with health insurance

Since health insurance is required in the U.S., most people who have PIP coverage also have some sort of health insurance policy on top of that.

How those two policies interact with each other depends on your state and policy terms. Sometimes, PIP covers expenses first, paying for covered losses up to your policy’s limit. After that, health insurance kicks in and covers the remaining expenses, if they’re eligible for coverage. In other states, health insurance covers first, with PIP providing secondary coverage.

In some scenarios, you may only be able to use your PIP to cover the deductible on your health insurance, and your health insurance policy will cover the rest.

If you’re not sure which policy will take precedence if you’re in an accident, talk to your insurance agent. They can walk you through the process in your state.

Who needs personal injury protection?

Personal injury protection can protect you as a driver, but other parties can benefit from this coverage as well. PIP can be helpful for:

  • Drivers and vehicle owners: PIP helps if you’re in an accident — no matter who’s at fault — covering costs for both you and any passengers in your car.

  • Passengers: PIP also covers you as a passenger when you’re riding in other peoples’ vehicles.

  • Pedestrians and cyclists: If a vehicle hits you while you’re riding your bike or walking, PIP coverage kicks in and covers medical costs.

  • Other drivers of your car: Sometimes, PIP can cover other people driving your vehicle if they’re in a wreck.

Good to Know

Many states require PIP coverage. But even if it’s not mandatory in your state, you may want to explore coverage anyway — especially if you don’t have health insurance or you have a high-deductible or low-coverage plan.

Personal injury protection laws by state

Only some states require personal injury protection coverage. See below for the minimum requirements in each of these states.

State
Minimum PIP Coverage Required
Delaware$15,000 per person and $30,000 per accident
Florida$10,000
Hawaii$10,000
Kansas$4,500 per person for medical expenses; $900/month for one year for disability; $25/day for in-home services; $2,000 for final expenses; $4,500 for rehabilitation expenses; survivor benefits ($900/month for one year of lost income plus $25/day for in-home services)
Kentucky$10,000 per person
Massachusetts$8,000 per person, per accident
MichiganSix PIP coverage options depending on your other insurance policies; some drivers on Medicare may opt out of coverage
Minnesota$40,000 per person, per accident
New Jersey$15,000 per person, per accident
New York$50,000 per person
North Dakota$30,000 per person
Oregon$15,000 per person
Utah$3,000 per person

How much personal injury protection costs

The cost of PIP depends on many factors, including the coverage amount, the policy limits, the deductible, the number of drivers and vehicles included, and the insurance company you choose. Typically, the more vehicles on the policy, the more you’ll pay for insurance.

Liberty Mutual estimates that PIP typically accounts for about 15%–20% of your total policy premium.[4]

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How to lower your car insurance rates after adding PIP

If you want to reduce your car insurance premium after adding PIP coverage, here are some ways you can lower your rates:[5]

  • illustration card https://a.storyblok.com/f/162273/150x150/8329623678/money-96x96-blue_025-online-money.svg

    Compare insurance companies

    Premiums can vary quite a bit from one insurer to the next.

  • illustration card https://a.storyblok.com/f/162273/150x150/f93e5c7ccc/banking-96x96-orange_017-coins.svg

    Increase your deductible

    This will mean paying more out of pocket on a claim, but it can save you on your premiums.

  • illustration card https://a.storyblok.com/f/162273/x/d980bd9cc4/membership.svg

    Bundle your insurance policies

    Many insurers will give you a discount for having multiple policy lines with them.

  • illustration card https://a.storyblok.com/f/162273/150x150/65385b4b54/banking-96x96-green_032-credit-card.svg

    Boost your credit

    A higher credit score often qualifies you for lower insurance premiums.

  • illustration card https://a.storyblok.com/f/162273/150x150/3b97fae014/money-96x96-blue_033-magnifying-glass.svg

    Look for other discounts

    Insurance companies usually have several discounts that help you reduce your costs. You may be able to get one by taking a safe driver class, getting good grades, and more.

You can also ask your employer if it offers group insurance. This can help you save on premiums, too.

Personal injury protection FAQs

Not every state requires personal injury protection, but it’s often a smart coverage to have. See the additional information below to learn more about PIP coverage.

  • How does PIP insurance differ from standard medical insurance?

    Medical insurance strictly covers medical costs, while personal injury protection offers broader coverage. PIP covers things like lost wages, essential services, and more if you’re injured in an accident. Both types of insurance can work together to cover post-accident costs.

  • What expenses does PIP insurance cover?

    Personal injury protection (PIP) covers medical expenses, rehabilitation costs, lost wages, funeral expenses, and even replacement services you’re no longer able to provide after an accident, like house cleaning or child care.

  • Is PIP insurance mandatory in all states?

    No. PIP coverage is only mandatory in some states, where no-fault insurance laws are in place. No-fault laws require drivers to file a claim with their own insurance company for bodily injuries, no matter who’s at fault in the accident.

  • How do you file a claim for PIP benefits after an accident?

    The exact claims process will depend on your insurer. Contact your agent to start your claim, and be prepared to offer details regarding the accident as well as documentation for the covered losses — things like receipts, invoices, medical bills, and more.

Sources

  1. Insurance Information Institute. "Background on: No-fault auto insurance."
  2. Nolo. "What You Should Know About Personal Injury Protection (PIP) Car Insurance Claims."
  3. Texas Department of Insurance. "Steps to getting your home or car insurance claim paid."
  4. Liberty Mutual. "Personal Injury Protection Coverage."
  5. Insurance Information Institute. "Nine ways to lower your auto insurance costs."
Aly J. Yale
Aly J. Yale

Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications, Triple-I
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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