In this guide
Personal injury protection (PIP) is car insurance coverage that pays medical bills for you and your passengers after a crash, regardless of who caused it. Depending on your state and policy, it can also pay lost wages, funeral costs, and other expenses. PIP is required in no-fault states and offered or included in a few others, so what it covers depends heavily on where you live.
Key takeaways
- PIP pays your injury-related costs no matter who was at fault, up to your policy's limit.
- As of Triple-I's 2022 chart, 16 states required PIP, including most no-fault states.
- Benefits vary: some states cover only medical bills, others add lost wages, funeral costs, and household services.
- PIP can limit your right to sue in some no-fault states unless injuries are serious.
- PIP interacts with health insurance and medical payments coverage, so check which pays first.
What PIP is
PIP is part of your own auto policy. The NAIC describes it as coverage that pays for treatment of injuries to you and your passengers, and notes that it can also cover lost wages and funeral costs, up to your policy limit. It is most closely tied to no-fault systems, where your own insurer pays for injuries regardless of fault.
The idea is faster payment of medical costs. Instead of waiting to settle who was to blame, you turn to your own insurer for benefits up to your PIP limit. Read more about this system in at-fault vs. no-fault states explained.
What PIP may pay for
The Insurance Information Institute (Triple-I) says that in states with the most comprehensive no-fault benefits, PIP can pay for:
- medical fees,
- lost wages,
- funeral costs, and
- other out-of-pocket expenses.
Triple-I notes that state limits vary on medical and hospital costs, funeral and burial costs, lost income, and payments for services an injured person who does not earn income can no longer perform. Some states also include benefits such as essential household services or childcare costs. The Texas Department of Insurance describes PIP in Texas as paying your and your passengers' medical bills plus lost wages and other nonmedical costs.
Good to know: Your PIP limit is a cap per person, and the way it is written differs by state and policy. Some states have set required minimums, and many insurers offer higher limits.
Where PIP is required
Triple-I's chart (October 2022) lists 16 states requiring PIP: Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah. Triple-I also reports that twelve states and Puerto Rico have no-fault laws: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. New Jersey, Pennsylvania, and Kentucky are "choice no-fault" states, where drivers can choose between a no-fault policy and a traditional tort policy.
Not every PIP state is a no-fault state, and the reverse is also true. Texas is an at-fault state, yet the Texas Department of Insurance says all Texas auto policies include PIP unless you decline in writing. Requirements change, so confirm with your state insurance department. Our state auto insurance index links to state pages.
PIP and the right to sue
In many no-fault states, using PIP means giving up some right to sue the at-fault driver for pain and suffering unless the injury is serious. Triple-I describes two types of thresholds:
| Threshold type | How it works | Where (per Triple-I) |
|---|---|---|
| Verbal threshold | You can sue only for certain types of serious injury, such as permanent disfigurement or disability | Florida, Michigan, New Jersey, New York, Pennsylvania |
| Monetary threshold | You can sue only if medical costs exceed a set dollar amount | Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, Utah |
Thresholds, amounts, and choice options can change. Ask your insurer or an attorney how they work in your state.
PIP vs. medical payments coverage
PIP and medical payments (MedPay) both pay medical bills for you and your passengers regardless of fault, so they are often confused. The key differences, in general terms:
- Scope. PIP often covers more than medical bills, such as lost wages and funeral expenses. MedPay is typically limited to medical and funeral costs.
- Where it is offered. PIP is required in many no-fault states. MedPay is optional in most states where it is offered.
- Limits and deductibles. Both have caps set by your policy, and PIP may carry its own deductible or coinsurance in some states.
Some people carry both, where allowed, to add layers. Learn more in medical payments (MedPay) coverage explained.
PIP and health insurance
How PIP coordinates with health insurance varies by state. In some places you can choose to make your health insurer primary for medical costs, which may lower your PIP premium. In others, PIP pays first. If you consider this, check with your insurer and health plan about what is covered, deductibles, and how reimbursement works, since a wrong assumption could leave gaps. This is a good question for a licensed agent.
Watch out: Switching to a lower PIP limit, or deferring to health insurance, may reduce your premium but could leave lost wages or other expenses uncovered. Make sure you understand what you are giving up.
Who is covered by PIP
PIP generally applies to the policyholder, family members who live in the household, and passengers in the insured vehicle. In many policies it also applies if you are a pedestrian or in someone else's car. Specifics, such as whether guests or bicyclists are covered, differ by state and policy.
How to use PIP after a crash
- Get medical care. Keep records of every visit and bill.
- Notify your insurer promptly. PIP claims often have notice and filing deadlines, and some states have short time limits for treatment to begin.
- Submit claims and bills. The insurer will explain the forms and documents needed.
- Track lost income. Ask what documentation is required from your employer.
- Understand the interplay with health insurance, medical payments, and any claim against the other driver.
For general claim steps, see how car insurance claims work.
Does PIP affect your price?
Because PIP adds a coverage, it adds to the premium. In states that require it, you have limited choice other than the limit and options like deductibles. In states where PIP is optional, you may decide whether to add it. Compare quotes from several insurers using the same PIP limits, since prices and options differ by company.
Frequently asked questions
Does PIP pay if I'm at fault?
Yes. PIP pays for your injuries regardless of fault, up to your limit.
Does PIP cover my passengers?
Generally yes. The NAIC describes PIP as paying for treatment of injuries to you and your passengers. Details vary by policy.
Is PIP the same as health insurance?
No. PIP is part of your auto policy and only applies to crash injuries, within set limits. How it works with your health insurance depends on your state and policy.
Can I decline PIP?
In states where it is required, usually no. In others, such as Texas, you can decline in writing. Check with your insurer.
What if my medical bills exceed my PIP limit?
You may use health insurance, medical payments coverage, uninsured or underinsured motorist coverage, or a claim against an at-fault driver, depending on your state. Ask your insurer how these fit together.
Sources
- Insurance Information Institute – Background on: No-fault auto insurance
- Insurance Information Institute – Background on: Compulsory auto/uninsured motorists
- NAIC – What Does Auto Insurance Cover?
- Texas Department of Insurance – Auto insurance guide
General information only. This guide explains general concepts and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy documents and speak to a licensed insurance professional or your state insurance department about your situation.