What Is Personal Injury Protection (PIP)?

Fran Majidi
March 11, 2019

If you live in certain states you are required to carry personal injury protection (PIP) in addition to liability coverage for car insurance. The states that currently require drivers to carry PIP are Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas and Utah. The states personal injury protection is required in are called no-fault states. While you may not be required to carry personal injury protection (PIP) outside of these states, you should be aware of it and consider adding it to your coverage package. In the event of a car accident, PIP covers medical expenses and work loss for you and your passengers, regardless of who is at fault. Standard liability insurance will not cover these situations. Here’s some more information on PIP.

Do I Need Personal Injury Protection (PIP)?

Some people should definitely consider personal injury protection. For instance, if you drive people around in your car often, you are liable for their medical expenses if they are in the car in the event of an accident. Also, if you get hurt, your health insurance may not cover all of the expenses. If you or your passenger(s) need to miss work because of the accident PIP will cover lost wages too. If you can’t lift your baby and need to hire a babysitter or if you can’t perform any of the regular functions you used to perform (yes, even cleaning the house), you’ll be covered if you need to hire help. God forbid someone dies in the car accident, but if it happens, don’t assume car insurance will cover funeral/burial costs, unless you have PIP.

Who Is Covered by Personal Injury Protection (PIP)?

The policyholder and family members, passengers and anyone else driving the car with permission are usually covered. You are also covered, as the policyholder, even if you’re injured as a passenger in someone else’s car or as a pedestrian or bicyclist. Whether or not you’re at fault doesn’t matter. You will be covered in the event of an auto accident for ambulance bills, medical treatment, surgery and medication. You can also use the policy to cover days you lost at work and any rehabilitation that may be necessary afterwards.

It’s important to note that you’ll be using your own PIP coverage, even when the other party is at fault. However, if you reach your threshold but your injuries are severe enough to meet the threshold, you can sue the at-fault party.  

Is Personal Injury Protection Only Available in No-fault States?

No, you can buy personal injury protection even if you don’t live in a no-fault state. It’s good to have if you drive people around regularly or if your medical insurance is not very comprehensive and will likely not cover all your needs if you are ever hurt in a car accident. Cyclists are also wise to invest in this form of protection because they are so vulnerable to vehicles on the road.

How much PIP insurance covers varies from state to state.

How Much Does Personal Injury Protection Cost?

Much like other forms of car insurance, the cost of PIP depends on several factors, which include vehicle type and location. Different insurance companies set different rates even when all the factors are the same. Get started on the form below to find out if you’re paying too much for auto insurance. Also ask the agent how much it would cost to add PIP.

To see if you should add collision and/or comprehensive insurance to your current auto insurance policy, make sure to visit out blog pages.

What Doesn’t PIP Pay For?

If you have repairs on your car, PIP won’t cover those expenses. You’ll have to file a claim against the at-fault driver to cover costs. If you have collision insurance and are at fault, you will be covered up to the limits on your policy. If you don’t have collision coverage and are at fault, your liability coverage will not pay for damages either. It only covers the other party when you’re at fault.

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