What is Personal Injury Protection (PIP) Insurance?

Personal Injury Protection (PIP) insurance is a type of coverage that helps pay for medical bills, lost income, and other expenses if you or your passengers get hurt in a car accident, no matter who caused the accident. That’s why it’s sometimes called “No-fault insurance” because it can cover you regardless of who’s at fault. It can cover things like x-rays, doctor visits, and even help make up the wages you lose if you're unable to work due to your injuries. 

Why does PIP matter?

Imagine you’re in a car accident and suffer a serious injury. You can’t work for several weeks and need surgery that costs $30,000. Without PIP, you might have to rely solely on health insurance, which could leave you with out-of-pocket expenses for lost income and other costs. PIP helps bridge that gap, giving you some financial protection when you need it most.

Is PIP required in every state?

Not all states require PIP coverage. According to the Insurance Information Institute (III), PIP insurance is required in 12 states, referred to as "No-fault states". In other states, it may be optional or not offered.

What does PIP insurance cover?

Here’s what PIP insurance usually covers:

• Medical Expenses: Doctor visits, hospital stays, and surgeries
• Lost Wages: To allow recovery time from injuries
• Other Costs: Childcare, transportation, household help, or even funeral expenses

Please note that PIP will only apply to accidents that are covered by the policy, so not all medical bills or lost wages will be covered. Benefits can only be paid up to the limits of the policy.

Why should I add PIP insurance to my policy?

Adding PIP insurance to your policy gives you peace of mind. The cost for accidents can be overwhelming. The cost for hospitalization after an accident can run tens of thousands of dollars. Medical bills can add up, so getting PIP coverage is a wise choice.

Learn about PIP for commercial auto policies 

How much PIP coverage should I get?

The amount of PIP coverage you need depends on your state’s requirements and your personal circumstances. For example, in Florida, drivers must carry at least $10,000 in PIP coverage.

In other states, like Texas, PIP is optional. In these states, use these tips to help choose the right amount of coverage:  

• Consider your health insurance: If your health insurance plan is comprehensive, you might not need as much PIP. Think about your deductible (the money you must pay out of your own pocket before your health insurance kicks in), and any copays for things like emergency room visits. 
• Think about your income: Consider the bills you’d have to cover if you were injured. PIP can replace lost wages if you can’t work.  
  

Is PIP insurance worth it?

PIP is required by law in no-fault states including Florida and Pennsylvania. But even in states where it's optional, it can provide valuable coverage and reduce your financial stress if you’re in an accident. You can’t put a price on peace of mind, so consider adding PIP coverage to your policy if your state offers it.

This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or all underwriting companies. All statements are subject to the terms, exclusions and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting our underwriting qualifications and state availability. Other terms, conditions and exclusions may apply.