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Personal Injury Protection: Benefits of Having PIP Coverage

The states where personal injury protection is required are called no-fault states. If you live in a no-fault state you are required to carry personal injury protection (PIP) in addition to liability coverage for car insurance. PIP is sometimes called no fault insurance.

PIP covers medical expenses and lost wages for you and your passengers, regardless of who is at fault.

In the event of a car accident, PIP covers medical expenses and lost wages for you and your passengers, regardless of who is at fault. The insurance company will cover these costs.

Liability Insurance will not cover the aforementioned losses. It only covers losses for the other driver and passengers if you are at fault.

While you may not be required to carry Personal Injury Protection (PIP) coverage if you do not live in a no fault state, you should consider adding it to your car insurance policy for extra protection for medical expenses, funeral costs and other expenses incurred from the accident.

List of No Fault States

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

Do I Need Personal Injury Protection (PIP)?

Some people should strongly consider adding personal injury protection to their auto insurance policy, especially if the driver and passengers don't have health insurance. For instance, if you drive people around in your car often, you are liable for their medical expenses if you have an accident.

If you get hurt, your health insurance may not cover all of the expenses caused by the accident.

Also, if you get hurt, your health insurance may not cover all of the expenses caused by the accident. PIP coverage would cover the remaining balances. PIP coverage is important if you have an especially terrible car accident, after which you will have to consider funeral expenses or if you or your passenger(s) need to miss work because of the accident.

Yes, PIP coverage 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 (like cleaning the house), you'll be covered if you need to hire help.

God forbid someone dies in a car accident, but if it does happen, don't assume the car insurance company will cover funeral costs without PIP coverage.

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 by PIP. 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 with PIP coverage. 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 afterward.

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 PIP if you drive people around regularly or if your medical insurance is not very comprehensive.

It's good to have PIP 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. Costs vary too.

How Much Does Personal Injury Protection Cost?

PIP coverage can cost anywhere from fifty dollars up to a couple of hundred per month. It is rated based on your age, location, the make and model of your vehicle and the amount of coverage you buy. It may not be the least expensive coverage on your auto policy, however, it is vital to proper protection.

Different insurance companies set different rates even when all the factors are the same. Get started on an auto insurance quote to find out if you're paying too much for auto insurance. Also ask the agent how much it would cost to add personal injury protection (PIP) coverage to your auto insurance policy.

Ask your insurance agent if you should add collision and comprehensive insurance to your current auto insurance policy. 

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's liability insurance 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. You will be on your own to pay for repairs if you don't have PIP.

Why Get PIP Coverage Auto Insurance if I Don't Have To?

Covered Losses

Even if it’s not required personal injury protection coverage is a wise investment for many drivers.

Even if it's not required personal injury protection coverage is a wise investment for many drivers. Not only will PIP cover medical expenses, PIP will cover work loss for you and your passengers, regardless of who is at fault. Liability insurance would not cover you in a situation that requires medical attention or paid time off.

No Out-of-Pocket Expenses

If you are in an accident and have PIP your family members, passengers and anyone else driving your car with permission are usually covered. With PIP coverage, you may be covered for having to hire work due to injuries (babysitter, cleaning help, etc.). It would also cover most costs as well as final expenses.

Passengers and Pedestrians with PIP

You're also covered by PIP if you're injured as a passenger in someone else's car or if you're hit as a pedestrian or cyclist. This coverage will also pay for rehabilitation if your injuries require it. Usually, limits are sufficient in these instances, but if they are not you are able to sue the at-fault party if you were not at fault. If you were at fault, you're still covered by PIP payments coverage.

Car Insurance Quotes with No Fault Insurance

It's important to have the right auto insurance policy with the right add-ons. SmartFinancial can compare prices for you and match you with the right insurance agent in your area who can advise you further about whether or not you need personal injury protection. Start your search by entering your zip code below. The service is free, and you are under no obligation to buy a policy.

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