What Is Personal Injury Protection?

What does personal injury protection cover?

PIP typically covers the driver and passengers of the insured vehicle, but it can also extend to you if you’re injured outside of the vehicle. For instance, if you’re on a walk or out riding your bicycle and are injured in an auto accident, PIP may still provide coverage. The specifics of who’s covered can vary depending on the state and the policy, but in general, PIP provides broad protection for anyone injured in the accident. PIP usually covers:

• Medical expenses: PIP can help cover the cost of medical treatment, including hospital stays, surgeries, doctor visits, physical therapy, copays and health insurance deductibles.
• Lost wages: If your injuries prevent you from working, PIP may cover a portion of your lost income. This is particularly helpful for those who don’t have access to paid sick leave or for self-employed individuals who may struggle to make up for lost work hours.
• Essential services: In some cases, PIP also covers the cost of services that will help you manage your daily life while you heal. This may include hiring someone to help with housekeeping, child care or grocery shopping.
• Funeral expenses: If the worst happens and a loved one dies in an accident, PIP can provide coverage for funeral and burial expenses, helping to ease the financial burden during a difficult time.

What isn’t covered by personal injury protection?

While PIP offers broad coverage for medical expenses and other costs related to injuries from an accident, it doesn’t cover everything. There are specific situations that fall outside the scope of this coverage. Here’s what’s typically not covered by PIP:

• Property damage: PIP is solely for medical and injury-related expenses, so it won’t help with any property damage. If your car is damaged or if your vehicle causes damage to another driver’s car, you may need to rely on other types of coverage for those damages. 
• Injuries to others: Any injuries to other drivers or passengers in an accident you cause would likely be covered by your bodily injury liability insurance. Additionally, PIP wouldn’t cover pain and suffering damages. 
• Medical expenses beyond policy limits: PIP covers your medical expenses, but it does have limits. If your medical costs exceed the maximum coverage limit set by your policy, you'll be responsible for the remaining balance. 
• Illegal activity: PIP generally excludes coverage in certain circumstances where the driver is involved in committing a crime or engaging in illegal activities.

Do I need personal injury protection?

Whether or not you need PIP depends largely on where you live and your personal situation.

PIP laws vary by state

PIP isn’t required everywhere. The states that require PIP coverage are known as "no-fault" states, where drivers carry insurance to cover their own injuries regardless of who caused the accident. If you live in one of these states, PIP is typically a mandatory part of your auto insurance policy.

However, in states where "fault-based" insurance systems are in place, PIP may be optional. In these states, drivers can pursue compensation for their injuries through the at-fault party’s insurance or their own health insurance, depending on the circumstances. If you’re unsure whether your state requires PIP or operates under a no-fault or fault-based system, visit our state-by-state guide to auto insurance requirements.

Scenarios where PIP is valuable

Even if you live in a state where PIP is optional, there are certain situations where it’s highly beneficial:

• No health insurance or high deductibles: If you don’t have health insurance or have a high deductible, PIP may provide a safety net to cover medical expenses after an accident. 
• Freelance or self-employed: If you’re a freelancer or self-employed, missing work due to an injury can have a serious financial impact. PIP’s lost wage coverage can help provide compensation for income you lose while recovering from an accident.

How much PIP is needed?

The amount of PIP coverage you need depends on several factors, including your state’s requirements, your health insurance and your personal circumstances. While some states have minimum coverage requirements, you can often purchase additional coverage for more comprehensive protection.

Comparing PIP insurance with other medical coverages

Personal injury protection is one of several types of insurance that may help cover medical expenses and other accident-related costs. But how does it compare to other coverage options?

PIP vs. medical payments (MedPay) 

Medical payments coverage, or MedPay, is similar to PIP in that it covers medical expenses after an accident. However, MedPay generally has a narrower scope than PIP. MedPay typically only covers medical bills, and it may not extend to lost wages or essential services. 

PIP vs. bodily injury liability 

Bodily injury liability is a type of insurance that covers the costs if you’re at fault in an accident that injures someone else. Unlike PIP, which covers your own injuries and those of your passengers, bodily injury coverage only covers the injuries of other people involved in the accident. 

PIP vs. health insurance 

Health insurance is an important safeguard for medical expenses, but it may not always cover all the costs associated with an accident. PIP fills in the gaps by covering additional costs like essential services and lost wages.

Get the right auto insurance coverage for your needs

While personal injury protection can be a fundamental part of your auto insurance policy, it’s just one piece of the puzzle. To make sure you’re fully protected, consider other coverage options that can help protect both you and your finances.

Liability Coverage: Protects against claims if you’re responsible for an accident.

Collision Coverage: Helps pay for repairs if your vehicle is damaged in a collision. 

Other Than Collision Coverage: Also referred to as comprehensive coverage, it helps cover damages to your vehicle from incidents like theft, vandalism or natural disasters.

Medical Payments Coverage: Pays for your medical expenses or those of your passengers following a covered auto accident.

Uninsured/Underinsured Motorist Coverage: Provides protection if you're involved in an accident with a driver who doesn’t have sufficient or any insurance.

When you combine PIP with these other coverage options, you’ll have a well-rounded auto insurance policy that can help provide protection wherever your journey takes you.