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Personal injury protection insurance, also known as PIP insurance, is car insurance that pays for your medical bills, lost wages, funeral costs, or other expenses related to injuries from a car accident, regardless of whether the accident was your fault.
Some form of personal injury protection car insurance is required in 15 states, including all 12 states with no-fault auto insurance laws. Personal injury protection is different from liability insurance in that PIP pays for your medical expenses, while liability pays for harm you cause to other people or their property as a result of an accident.
We’ll explain what personal injury protection is, how personal injury protection insurance works, and what PIP insurance does and doesn’t cover so you can determine whether you need it or your state requires it.
Read more: These are the minimum car insurance requirements in all 50 U.S. states
How personal injury protection works
With PIP insurance, you can file an insurance claim with your own auto insurance company for benefits related to your medical expenses after a car accident, no matter which driver was at fault. The insurance company will pay up to your coverage limit minus the deductible.
If you were not at fault, your insurance company will reclaim its expenses from the other driver’s insurer. If the expenses exceed the no-fault limits set by the state, you are then permitted to sue the other driver.
PIP also covers injury-related expenses for your passengers, and it covers you if you’re a pedestrian or bicyclist injured in an auto accident or if you’re riding in someone else’s car.
What costs will PIP insurance cover?
PIP insurance can help cover the cost of:
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Medical expenses, including the costs of an ambulance, scans, surgery, medication, and rehabilitation
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Funeral expenses
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Lost wages
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At-home care
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Other costs resulting from injury, such as transportation, childcare, or house-cleaning services.
PIP insurance does not cover property damage or injuries to the occupants of other cars, so it’s important to understand how personal injury protection works and what other types of auto insurance coverage you might need.
Learn more: What is liability car insurance, and how much do you need?
Is PIP coverage required in my state?
If you live in a no-fault state, PIP coverage — or, in some cases, medical payments coverage, known as MedPay — is required under state law, just like liability coverage.
Only 12 states are true no-fault states, meaning they place certain restrictions on a consumer’s right to sue. Three of those states — Kentucky, New Jersey, and Pennsylvania — are called “choice no-fault” states, meaning individual drivers can choose to opt out of no-fault provisions and reject PIP coverage.
In addition, several at-fault states also require drivers to purchase some form of personal injury protection. In other states and the District of Columbia, PIP coverage is optional or can be waived in writing.
Learn more: Most common types of car insurance explained
Check out the table below to see which states require personal injury protection and what the minimum thresholds are.
In some states, Medical Payments coverage, or MedPay, offers similar coverage. Like PIP, MedPay covers medical expenses for you and your passengers after a car accident, regardless of who is at fault. However, MedPay does not extend to lost income, home services, or other injury-related costs.
Do I need personal injury protection coverage?
Adding PIP coverage to your car insurance policy depends on where you live — and whether you have health insurance.
If you live in a no-fault state, there’s no question you must include PIP in your car insurance coverage.
If you live in a state where it is available but optional, the choice may be more nuanced. If you don’t have health insurance at all, PIP coverage could protect you from having to pay high medical bills out of pocket in the event of an accident.
Some states require health insurance to pay for your injuries before PIP. However, PIP insurance could still pay for your health insurance deductible, making it an attractive option if, for example, you carry a high deductible.
In any case, it’s always a good idea to evaluate how much car insurance you need and speak to insurance professionals you trust.
Read more: How much car insurance do I need?
Personal injury protection FAQs
Do I need personal injury protection insurance if I have health insurance coverage?
If you already have health insurance coverage, you may be wondering if personal injury protection is really necessary. While your health insurance covers your medical expenses, PIP is designed to extend to other types of damages, such as lost wages, funeral expenses, and the costs of at-home care for yourself or your passengers in the event of an accident.
Some states will allow you to waive personal injury protection if you have health insurance, but most do not because the health insurance is not as comprehensive and not designed to extend to other occupants of your car.
Does PIP require a deductible?
Yes, PIP is subject to a car insurance deductible, similar to the deductibles in liability insurance. Depending on the state, it may be possible to choose a deductible as low as $0 or as high as $1,000 or more. However, some states don’t cap the cost of deductibles, which means your insurer can choose the amount you’ll need to pay out-of-pocket before your personal injury protection coverage kicks in. Remember, however, the rule in auto insurance is the lower the deductible, the higher the premium.
Is personal injury protection no-fault car insurance?
Yes, personal injury protection coverage is sometimes referred to as no-fault insurance. But this can confuse the meaning of no-fault, which actually refers to the laws of the state. And some at-fault states require personal injury protection, which can further confuse the use of the term.
A no-fault state places restrictions on the right to sue and, as part of that law, requires drivers to purchase personal injury protection insurance.
This article was edited by Tim Manni.
Kaz Weida contributed to this article.
