What is personal injury protection (PIP) and do you need it?
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BLUEPRINT
Updated 1:33 p.m. UTC Nov. 2, 2023
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If you’re at fault for an accident, your liability car insurance won’t cover the cost of injuries to you and other people in your car. Personal injury protection (PIP), or no-fault insurance, can cover medical expenses for you and your passengers, up to your policy limit, no matter who caused the accident.
PIP coverage is required in states with “no-fault” laws, which restrict the right to sue for auto accident injuries. So depending on where you live, you may need to purchase this type of car insurance coverage. But even if it’s optional for you, if PIP is available in your state it can be a good addition to your car insurance policy.
What does personal injury protection PIP cover?
PIP typically covers the following types of expenses for you and your injured passengers, even if you’re at fault for an accident:
- The cost of medical care and rehabilitation for injuries sustained from a car accident.
- Lost wages due to accident-related injuries.
- The cost of replacement services for everyday essential tasks you can’t complete due to accident-related injuries, such as child care or cleaning.
- Funeral expenses if the accident resulted in death, depending on the insurance company and policy details.
Because PIP is a no-fault coverage, those with personal injury protection are covered regardless of who caused the accident.
Barlow points out that PIP coverage should not be confused with the bodily injury (BI) portion of your liability insurance, which is required in nearly every state. If you cause an accident, BI liability coverage will only cover medical expenses of the other driver, their passengers and any pedestrians that are injured.
If you are injured in an auto accident that you did not cause, the responsible party’s liability insurance typically provides coverage to you for your injuries, but that coverage is dependent on the responsible party’s insurance policy — assuming they carry the appropriate type and amount of coverage and did not flee the scene.
“It can sometimes be difficult to determine which driver is responsible for causing an auto accident,” said Barlow. “It can take some time before the responsible party’s insurance company accepts liability for the accident. [PIP] can ease the burden during this period of time by covering your medical expenses right away.”
What isn’t covered by personal injury protection?
PIP insurance does not cover:
- Injuries to a third-party, such as another driver, their passengers or pedestrians.
- Damage to your vehicle.
- Damage to someone else’s property, including their vehicle.
- Injuries sustained while engaged in criminal activity.
- Injuries sustained while driving your vehicle for work purposes.
If you are in an accident and another driver is at fault, their liability insurance will cover your vehicle damage and injuries sustained by you or your passengers.
Likewise, your liability insurance will cover damages and injuries to others if you’re at fault for the accident.
Is personal injury protection required?
PIP coverage may be required in your state, and that’s especially true for drivers in no-fault states.
The following states are considered no-fault states and require PIP car insurance coverage:
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania (first-party benefits or medical benefits)
- Utah
The following states are considered at-fault states, but drivers must still purchase PIP car insurance coverage.
- Delaware
- Maryland
- Oregon
Kentucky, New Jersey and Pennsylvania are considered “choice no-fault states,” where drivers can choose to purchase an at-fault (full torte) policy or no-fault (limited torte) policy.
Even if you don’t live in a state that requires PIP coverage, you may still be able to purchase it if you’d like the additional coverage it provides. PIP is not required but available to drivers in Arkansas, Connecticut, Texas, Washington and the District of Columbia.
A personal injury protection (PIP) deductible is the amount your insurer will deduct from a claims check before paying out on an approved PIP claim. PIP deductibles vary, with some states preventing insurers from applying deductibles to PIP claims. If your policy includes PIP, you may be able to increase your deductible to lower your premium.
In states that require it, PIP is an essential part of your car insurance policy. Even if your state doesn’t require PIP, it’s worth considering, especially if you don’t have health insurance. PIP can cover your medical expenses, up to your policy limits, if you’re injured in a car acciden, even if you’re at fault.
PIP only applies to auto accidents, so it isn’t meant to be used in lieu of health insurance. And, if you do need to use your PIP coverage following an accident, costs from an injury may still exceed your PIP limits. However, if you don’t have health insurance, adding PIP to your policy provides a layer of financial protection if you’re injured in an accident.
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