What is personal injury protection (PIP) insurance?

PIP coverage typically covers the following:

• Medical costs: PIP helps pay for necessary expenses resulting from an accident, such as hospital bills, doctor visits, surgery, medication, and rehabilitation services.
• Lost wages: If you are unable to work due to accident-related injuries, PIP can provide compensation for the income you would have earned during that time.
• Essential services: PIP can also cover expenses for services you may need due to your injuries, such as house cleaning, childcare, or transportation to medical appointments.
• Funeral expenses: If a fatality results from an accident, PIP may cover funeral and burial expenses.

Who does PIP insurance cover?

PIP insurance typically covers the policyholder and passengers in the insured vehicle, regardless of who caused the accident. Depending on your policy and state, it may also cover you if you’re injured as a passenger in someone else’s car or as a pedestrian or bicyclist struck by a vehicle. Coverage rules vary by state and insurer, so check your policy to confirm who is covered.

PIP insurance generally does not cover vehicle damage, damage to someone else’s property, or pain and suffering. It also typically won’t cover injuries tied to intentional acts, criminal activity, or other excluded uses of the vehicle. And because PIP only pays up to your policy limits, you may be responsible for any expenses that exceed your coverage.

Personal injury protection, or PIP, is required in many states with no-fault car insurance systems, though the rules, coverage limits and terminology vary by state. Some states are also considered “choice no-fault” states, meaning drivers may have options that affect how injury claims are handled.

As of this writing, the states commonly classified as no-fault or choice no-fault states include:

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

Because state insurance laws can change, check with your state insurance department, agent, broker, or insurance company representative to confirm the current requirements where you live.

PIP coverage requirement by state

Personal injury protection insurance requirements vary depending on whether you live in a no-fault or at-fault state. In no-fault states, PIP is mandatory, but coverage levels vary. Here is a breakdown of minimum coverage amounts in no-fault states where PIP is required:

Source: Insurance Information Institute (III) and state departments of insurance and motor vehicles.

In at-fault states, PIP insurance may not be offered at all, or it may be available as an add-on to your liability insurance. Coverage amounts will vary by insurer and state.

If PIP is optional in your state and you don’t buy it, you may need to rely on your health insurance, MedPay if you have it, or your own funds to pay accident-related medical expenses. You also may not have coverage for costs PIP can sometimes help with, such as lost wages or essential services.

PIP is required in many no-fault states and may be required or offered in some other states as well. It can provide valuable coverage for medical expenses and lost wages resulting from a car accident. PIP also covers substitute services, like a cleaning crew, and funeral expenses in some cases.

While PIP insurance is optional in some states, it’s important to carefully consider your needs and potential costs before deciding whether or not to purchase it.