Personal Injury Protection (PIP): What It Pays, How Much You Need

Personal injury protection, usually called PIP, is the part of a car insurance policy that pays your own medical bills and some lost income after a crash, regardless of who caused it. It is the core of no-fault insurance: in the 12 no-fault states, your own insurer pays your injury costs first, and you can only sue the other driver once your injuries are serious enough to cross a legal threshold.

The short version:

• PIP pays medical bills and a share of lost wages for you, your household, and often your passengers, whoever was at fault.
• It is required in no-fault states such as Florida, Michigan, and New York, and in a few other states.
• Elsewhere it may be optional, or not offered at all, with medical payments coverage (MedPay) as the closest alternative.
• Limits vary enormously: from a few thousand dollars to, in Michigan, an unlimited option.
• PIP does not pay for pain and suffering or damage to your car.

This is general information, not insurance or legal advice. PIP rules are written state by state, and the details below are simplified.

What PIP covers

Exact coverage depends on your state, but PIP typically pays for:

• Medical expenses: hospital, doctor, surgery, ambulance, prescriptions, and rehabilitation.
• Lost income: a percentage of wages you lose while you cannot work, up to a cap.
• Replacement services: help with tasks you can no longer do, such as household chores or childcare, in many states.
• Funeral expenses and survivor benefits, in some states.

It generally covers you and members of your household, whether you are driving, riding as a passenger in another car, or hit as a pedestrian. Passengers in your car are usually covered too.

PIP does not pay for:

• pain and suffering or other non-economic losses;
• damage to your car (that is collision coverage);
• injuries to the other driver (that is their PIP, or your liability coverage).

Which states require PIP

According to the Insurance Information Institute, 12 states and Puerto Rico have no-fault auto insurance laws. These states require PIP and limit when you can sue:

• Verbal threshold (you can sue only for injuries meeting a legal description, such as serious and permanent injury): Florida, Michigan, New Jersey, New York, Pennsylvania.
• Monetary threshold (you can sue once your medical costs pass a set amount): Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, Utah.

Three of them, Kentucky, New Jersey, and Pennsylvania, are “choice” states: you can choose to give up the lawsuit restriction, usually for a higher premium.

Some states that are not no-fault, such as Delaware and Oregon, still require PIP but do not limit your right to sue. Others, such as Texas and Maryland, require insurers to offer PIP and let you reject it in writing. For a direct answer for your state, see the full list of no-fault states.

How much PIP pays: three examples

PIP limits differ so much between states that a national “average” is meaningless. Three examples of how differently states approach it:

Laws change, so confirm your state’s current minimum with your insurer or your state insurance department.

PIP vs MedPay vs health insurance

MedPay is the closest substitute where PIP is not offered. Its limits are usually low, often a few thousand dollars, but it can cover deductibles and copays your health plan leaves behind.

How much PIP do you need?

Buy at least your state’s minimum. Above that, a useful target is enough PIP to cover what your health plan would leave you to pay (its deductible and out-of-pocket maximum) plus a few months of the income you would lose if you could not work. The state minimum is a floor, not a recommendation. A single emergency room visit and a few weeks of physical therapy can exhaust $10,000. Things to weigh:

• Your health insurance. If you have a strong health plan, extra PIP medical coverage overlaps with it. Some states let you coordinate the two for a lower premium.
• Your income. PIP is often the only coverage that replaces lost wages after a crash. If missing work would hurt, higher limits are worth pricing.
• Who is in your household. PIP covers family members who may not have their own coverage.

How to make a PIP claim

1. Get medical care promptly. Some states require treatment within a short window for PIP to apply. In Florida, for example, initial treatment must take place within 14 days of the crash.
2. Notify your own insurer, even if the other driver was clearly at fault. In a no-fault state, your PIP pays first.
3. Complete the PIP application, and send medical bills and proof of lost wages as you receive them.
4. Keep records of every appointment, receipt, and day of missed work.
5. Check the threshold if your injuries are serious. Once you pass it, you may be able to bring a car accident lawsuit against the at-fault driver for losses PIP does not cover.

Frequently asked questions

Does PIP cover passengers?

Usually yes. Passengers in your car are typically covered by your PIP, unless they have their own PIP through a household policy, which may pay first.

Does PIP cover pain and suffering?

No. PIP covers economic losses such as medical bills and wages. Pain and suffering can only be claimed from the at-fault driver, and in a no-fault state only once your injuries cross the threshold.

Will my premium go up if I use PIP?

It can, depending on your state’s rules and whether you were at fault. Many states limit surcharges for accidents you did not cause.

Does PIP cover me if I am hit while walking or cycling?

In most no-fault states, yes. Your own PIP, or a household member’s, usually covers you when a car hits you as a pedestrian or cyclist.

What happens when my PIP runs out?

Your health insurance usually picks up remaining medical costs. If the other driver was at fault and your injuries meet the threshold, you can claim against their liability coverage, or your own uninsured motorist coverage if they have none.

Official resources

• Insurance Information Institute: Background on no-fault auto insurance: which states are no-fault and how their thresholds work.
• Cornell Law School: No-fault insurance: a short legal definition.
• Michigan: Choosing PIP medical coverage: the state’s guide to the coverage levels.

Where to go from here

Look at your declarations page for a PIP or “personal injury protection” line, and note the limit. If you are in an at-fault state and see neither PIP nor MedPay, ask your agent what each would cost. Then read about uninsured motorist coverage, the other line that protects you rather than the other driver, or browse all the injury claim guides. Arhox is an independent publication, not an insurer, broker, or law firm; our editorial policy and disclaimer explain how these guides are prepared.