Everything you need to know

What does personal injury protection insurance cover? 

PIP insurance coverage helps pay for medical-related costs after an accident. However, unlike MedPay, it covers more than just medical expenses. PIP benefits also include related expenses that may occur if you lose the ability to work or perform certain activities.

Costs usually covered by PIP include:

• Medical expenses such as doctor visits and prescriptions
• Lost wages from not being able to work
• Essential services like childcare, housekeeping and yardwork 
• Death benefit in case of a fatality 
• Passenger injuries 

Although this list is commonly included, what PIP covers varies by state and policy. PIP isn’t intended to replace health insurance but to complement it and help pay for accident-related costs.

“Typically, PIP coverage will handle 80% of an injured party’s medical expenses up to a maximum of $10,000 in certain situations,” Shiloh says.

Is personal injury protection insurance required in your state? 

No-fault states require PIP, and even a few tort states (where fault determines whose insurance pays) either require it or require that it be offered to drivers as an option. Take a look at the table below to see if your state requires PIP and the minimum limits.

*Choice no-fault states allow you to choose either no-fault or tort coverage. If you choose no-fault, PIP is required.

**Michigan law allows some Medicaid enrollees to carry $50,000 in PIP coverage.

Regardless of whether your state requires PIP, carrying the coverage can ease the financial burden after an accident by paying for costs, like lost wages, that your health care doesn’t.

How personal injury protection differs from other coverages 

Although PIP covers medical costs after an accident, it’s different than other types of insurance. Let’s break down how PIP compares to other types of insurance.

• PIP vs. liability insurance: Liability insurance only covers injuries to others when you are at fault in an accident. It provides no coverage for you. PIP, on the other hand, provides coverage for you regardless of fault and doesn’t cover the other driver, whose injuries are covered by their own PIP coverage.
• PIP vs. MedPay: Medical payment (MedPay) is another type of insurance that helps pay for medical costs to you regardless of fault in an accident. However, MedPay is limited to medical expenses, while PIP pays for related costs, like lost wages or childcare. 
• PIP vs. health insurance: Health insurance covers medical costs and typically has much higher coverage limits than PIP. However, PIP covers expenses that health insurance doesn’t, like childcare and other services. Your health insurance covers any medical needs, while PIP applies only to accidents.

Since most drivers already have liability and health insurance, adding PIP offers an affordable way to add a layer of protection to cover expenses not included with other coverages. 

How much PIP coverage do you need? 

State-mandated PIP insurance limits are typically low and don’t provide enough coverage. So, you may wonder, how much PIP insurance should I get? There are numerous factors to consider when determining PIP coverage.

First, if your state requires PIP, you must meet the minimums, which can be as low as $1,500. However, increasing the limit offers additional coverage. If your state doesn’t require PIP, you may add the coverage to your auto policy, although it’s not available in all states.

Next, consider your health insurance policy. You may think you don’t need PIP if you have health insurance, but adding the coverage can be a huge benefit. Remember that PIP also covers costs your health insurance doesn’t, such as lost wages. PIP coverage kicks in before health insurance, which can financially help if you have a significant insurance deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim..

If you don’t have health insurance, PIP can ease the financial burden if you’re injured. It also has a death benefit that can be helpful if you don’t have life insurance.

Finally, consider the financial risk of not having PIP, which covers costs that other forms of insurance don’t. For example, if you break your leg in an accident, PIP pays for lost wages, childcare, lawn care and other services you can’t perform. 

PIP only covers expenses up to your policy limit, so consider how much coverage you may need if your injury sidelines you for a significant amount of time.

How much does personal injury protection insurance cost? 

As with other forms of coverage, PIP insurance costs vary by driver, state, and insurer. 

Factors used to calculate rates include your age, vehicle, driving record, and location. States with required coverage may see a higher-than-average PIP premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods.. 

While annual rates can average between $50 and $200, the amount of coverage you choose can increase costs. Overall, PIP insurance is affordable and offers significant protection.

How to file a PIP insurance claim after an accident 

If you’re injured in an accident, knowing how to file a PIP claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. will allow you to receive your benefits quickly. Although the PIP claim process is similar to filing an auto insurance claim, specific steps may vary by insurer.

Steps of the PIP claim process typically include:

• Contact your insurance company. Inform your insurer of the accident and the extent of your injuries. There will be a specific claims process to follow.
• Acquire documentation. For PIP coverage to kick in, you must provide certain documents, such as pictures, police reports, medical bills and proof of lost wages.
• Follow the process. Your insurer will have deadlines and a specific process to follow. Be honest and punctual with your insurance company to have your claim resolved quickly.

Final thoughts: Who needs personal injury protection? 

PIP insurance helps cover expensive medical and related costs. Coverage also includes lost wages, services you can’t perform, such as childcare and lawn care, and a death benefit. PIP provides coverage quickly, without the need to first determine fault.

“Florida’s PIP law was enacted in 1971 and was created to avoid long legal battles over who caused an accident. Instead, your own insurance company helps you first, which can speed up medical care and payments,” Shiloh says.

Adding PIP to your insurance policy is a good idea, regardless of whether your state requires the coverage. PIP works with your health insurance and offers extra financial protection if you’re injured. Drivers with exceptional health insurance or who won’t be financially burdened by an accident may consider skipping PIP.

Reviewing and updating your auto insurance policy regularly is essential since your coverage needs change. Consider adding or increasing PIP insurance to ease the cost of injury.

Frequently asked questions about personal injury protection  

Can PIP be used alongside health insurance? 

Yes, your PIP and health insurance work together. Typically, PIP is the primary coverage, and your health insurance pays afterward. Keep in mind that your state may dictate how PIP and health insurance work together.

Does PIP cover hit-and-run accidents? 

Yes, PIP covers injuries from hit-and-run accidents and other accidents, regardless of who is at fault. It is for you, the named people on your policy, and your passengers.