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What Is Personal Injury Protection? Coverage for Your Car Accident Injuries

author-photoWritten by Dylan Tate
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Dylan Tate

Dylan Tate is an insurance content expert for SmartFinancial with over 300 articles about home, auto, business, health a...

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editor-photoEdited by Richard Murphy
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Richard Murphy

Richard Murphy manages content on SmartFinancial's website. With a strong background in content strategy and copywriting...

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Updated March 31, 2025

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Personal injury protection (PIP) is an auto insurance coverage that can help pay for medical bills, lost wages, funeral expenses and other costs after you or your passengers are injured or killed in a car accident. This coverage applies regardless of who is at fault and is mandatory in states with limited tort systems.

Keep reading to learn how PIP insurance works, how much it typically costs and where it’s required.

Key Takeaways

  • Personal injury protection (PIP) can help pay for medical treatment, lost income, daily assistance services and funeral expenses after a car accident — even if you are at fault.
  • PIP coverage extends to your passengers and may also apply if you are injured as a pedestrian or when you’re not driving.
  • On average, PIP costs about 15% to 20% of your total car insurance premium.
  • PIP is required for some or all drivers in 15 states and Puerto Rico.
  • Many of the states that require PIP follow a no-fault system, meaning you must file a claim on your own coverage — not the at-fault driver’s liability insurance — after most injury-related accidents.

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How Does Personal Injury Protection Work?

Personal injury protection is a type of car insurance that can step in if you or your passengers are injured or killed in a car accident. Depending on your state, you may not need PIP if another driver is responsible for an accident that injures you because your medical expenses may be covered by their liability insurance.

However, in some states, you are generally expected to file a claim on your own insurance policy after an accident, regardless of who is at fault. No matter where you live, if you’re at fault for an accident, your medical bills and related costs may only be covered if your policy includes PIP or medical payments coverage (Medpay).

PIP and Medpay

You should note that PIP claims typically require a deductible, which is the minimum amount that you are required to contribute out of pocket toward your claim.[1] For example, if you rack up $3,000 in hospital bills after an at-fault car accident and have a $500 PIP deductible, then your insurance payout would be $2,500.

Do You Need PIP if You Have Health Insurance?

PIP can still be beneficial even if you already have health insurance. For example, your PIP coverage may have a lower deductible than your health insurance plan, helping you access medical benefits sooner. Some insurers may even allow you to use your PIP payout to cover all or part of your health insurance deductible.[2]

In addition, PIP may help pay for some secondary expenses after an accident that aren’t covered by health insurance.

What Does Personal Injury Protection Cover?

After an accident that injures you or someone in your vehicle, PIP can cover medical expenses — including the costs of ambulance rides, surgeries, prescription drugs and rehabilitation. Your coverage may apply even if you’re not driving, such as if you’re hit by a vehicle while biking, walking across the street or riding in another person’s car.[1]

If you are unable to work or take care of other everyday responsibilities due to your injuries, personal injury protection insurance can also cover lost wages, child care, home cleaning services and more. Lastly, PIP can cover final expenses and death benefits for your beneficiaries if you die in a car accident.[2]

What Isn’t Covered by PIP Car Insurance?

Your PIP coverage won’t pay for another driver’s expenses after an accident you’re liable for — those costs are covered by your liability insurance. It also won’t cover damage to your car, which would be covered by a collision insurance policy. Additonally, your insurer may exclude coverage for your injuries in certain cases, such as if you are injured while driving for commercial purposes or committing a crime.[1]

How Much Does Personal Injury Protection Cost?

Personal injury protection coverage usually costs between 15% and 20% of the total cost of your car insurance policy.[1] Full coverage car insurance costs an average of $2,678 per year as of March 2025, which means that the average annual cost of PIP should be around $402 to $536.[3]

Is Personal Injury Protection Required?

Drivers are required by law to carry personal injury protection in Puerto Rico and the following 14 states:[4]

Delaware Minnesota
Florida New Jersey
Hawaii New York
Kansas North Dakota
Kentucky Oregon
Massachusetts Pennsylvania
Michigan Utah

PIP coverage is also mandatory for drivers in Maryland who buy more than the minimum amount of liability coverage required by law.[5] In all other states, personal injury protection car insurance is either optional or unavailable.

Personal Injury Protection

Keep in mind that many of the states that require PIP follow a no-fault insurance system, meaning you'll need to file a claim on your own policy after you’re injured in a car accident — even if the other driver is at fault. However, if you live in one of these limited tort states, you may still be able to sue the at-fault driver or file a claim on their insurance if you experience a severe injury or if your financial losses exceed a certain monetary threshold.

Additionally, the at-fault driver is generally responsible for damage to your vehicle since PIP doesn’t cover property repairs.

How To File a PIP Insurance Claim

If you or someone in your car is hurt in a covered car accident, follow these steps to file a claim on your personal injury protection auto insurance:

  1. Call 911 so first responders can assist any injured people and police officers can complete a police report.
  2. Exchange insurance and contact information with the other driver, and use your phone to document details about the accident scene.
  3. Contact your insurance company online, over the phone or through a mobile app, and submit any necessary documents and evidence.
  4. Review the coverage types, limits and deductibles included in your car insurance policy so you know what to expect from your claim payment.
  5. Use your insurance settlement to pay your medical bills and other covered expenses while you recover.

How To Get PIP Insurance for Your Car

You can improve your chances of finding an affordable PIP policy by comparing quotes from about three to five insurance companies. However, the process can be time-consuming if you reach out to each insurer individually to provide details about your car’s make, model, age, condition and other information used to generate quotes.

For this reason, it’s often easier to let an insurance marketplace like SmartFinancial handle the comparison shopping for you. Once you share your coverage needs, you can be connected with an insurance agent who can help you find a car insurance policy that suits you best. Click here to begin the process of comparing car insurance quotes for free today!

Add PIP Coverage to Your Auto Policy Today

FAQs

What’s the difference between PIP coverage and liability insurance?

PIP covers your medical bills and related expenses after a car accident, regardless of who is at fault. Conversely, liability insurance covers the other driver’s medical or car repair bills when you’re at fault.

Is PIP coverage the same as bodily injury insurance?

No, PIP is not the same as bodily injury liability insurance. PIP pays medical expenses for you and your passengers after an accident, while bodily injury liability insurance pays medical expenses for the other driver and their passengers when you are the at-fault driver.

Is PIP better than health insurance?

PIP is not necessarily better than health insurance because, unlike PIP, health insurance has no coverage limit.[6] Nevertheless, PIP can still be beneficial because it typically has a lower deductible than health insurance, and it can cover nonmedical expenses that health insurance doesn’t cover, such as lost wages and funeral costs.

How much PIP coverage should you have?

The amount of PIP you must purchase depends on your state’s requirements. For example, drivers in Utah only have to maintain $3,000 worth of PIP, while drivers in Michigan must purchase at least $250,000 worth of PIP unless they are on Medicare or Medicaid.[7][8]

Will your car insurance rates go up if you use PIP?

In states that require no-fault insurance, like Florida, your insurer may not be allowed to raise your rates after you file a PIP claim unless you’re found to be substantially at fault for the accident.[9]

Sources

  1. Liberty Mutual. “Personal Injury Protection (PIP) Coverage.” Accessed March 26, 2025.
  2. The Hartford. “What Is Personal Injury Protection (PIP) Car Insurance?” Accessed March 26, 2025.
  3. Bankrate. “Average Cost of Car Insurance in March 2025.” Accessed March 26, 2025.
  4. Allstate. “Personal Injury Protection Insurance | No Fault Insurance.” Accessed March 26, 2025.
  5. Maryland Insurance Administration. “Required Notice of Personal Injury Protection (PIP) Coverage and Options Selection Form,” Page 2. Accessed March 26, 2025.
  6. United States Department of Health and Human Services. “Lifetime & Annual Limits.” Accessed March 26, 2025.
  7. Utah Legislature. “Utah Code Section 31A-22-307.” Accessed March 26, 2025.
  8. State of Michigan. “Choosing PIP Medical Coverage.” Accessed March 26, 2025.
  9. Florida Keys Injury. “Will My Car Insurance Rates Go Up if I Use PIP?” Accessed March 26, 2025.
About the Author
Dylan Tate
Dylan Tate
Auto Insurance Expert

Dylan Tate is an insurance content expert for SmartFinancial with over 300 articles about home, auto, business, health and life insurance under his belt. He has over nine years of experience writing for online publications, primarily about gaming and esports. In the process, he has become an expert in search engine optimization, news reporting, feature writing and copy editing.

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