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››Understanding Personal Injury Protection – NerdWallet

Understanding Personal Injury Protection – NerdWallet

By Corey Owens
March 11, 2021
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Personal injury protection is auto insurance coverage that pays for medical expenses related to auto-related injuries, no matter who is at fault. While this type of coverage is available in 21 states and Washington, DC, 13 states require all drivers to wear minimum personal injury protection, commonly referred to as PIP.

What does personal injury protection cover?

PIP is intended to cover all injuries you sustain as a result of an accident, regardless of who is at fault, and includes other benefits as well. Depending on your condition, PIP could help you pay:

  • Medical bills and expenses resulting from a car accident.

  • Lost wages if you are unable to work due to injury resulting from an accident.

  • Services you can no longer perform due to an accident, such as cleaning or babysitting.

  • Funeral expenses if an injury resulting from an accident results in death.

  • A small death benefit as cash payment.

When you file a PIP claim with your insurance company, you may need to pay a deductible before you can collect benefits. The PIP generally covers the policyholder and family members in the household, vehicle passengers and others who drive the car with permission. Your PIP can also cover you if you are injured while riding in someone else’s car, or if you are injured by a vehicle as a pedestrian or cyclist.

How PIP relates to no-fault insurance

Personal injury protection is sometimes referred to as “no-fault insurance”. The name refers to states with “no-fault” laws, such as Florida, Michigan, and New York. These laws prohibit injured drivers from suing at-fault drivers after an accident, unless their injuries are serious or their medical costs exceed their state’s minimum prosecution requirement. “No-fault” states require minimum amounts of PIP for each conductor.

Personal injury protection by state

You can buy PIP in 21 states, as well as in Washington, DC Thirteen states require drivers to carry a minimum amount of PIP, while a few others offer it as an option to your policy. Use the map below to see if your state offers PIP, and if there is a minimum requirement.

Personal injury protection is required in 13 states

Drivers in 13 states are required to purchase a minimum amount of PIP, but this amount varies by state. Use the table below to see which states require personal injury protection and what the minimum requirement is.

Minimum coverage required

For a more detailed look at how personal injury protection works in these states, choose a state below:

What it covers: PIP will pay up to $ 15,000 for one person in an accident, or up to $ 30,000 for multiple injured people, for medical bills and lost wages. PIP also pays up to $ 5,000 for funeral expenses.

What it covers: The PIP will cover 80% of your medical expenses, up to the minimum of $ 10,000. It will also cover lost wages due to injuries caused by an accident and pay a death benefit of up to $ 5,000 per person.

In order to prosecute an at-fault driver, you must have suffered serious injury or death in an accident.

Minimum PIP: Hawaii requires a minimum of $ 10,000 in PIP.

What it covers: The PIP covers medical and rehabilitation costs resulting from an accident.

In order to sue an at-fault driver, the costs of your injuries must exceed $ 5,000, or you must have suffered serious injury or death as a result of the accident.

Minimum PIP: Kansas requires minimum PIPs for all coverage offered:

  • $ 4,500 per person for medical expenses.

  • $ 900 per month for 1 year for lost wages and disability.

  • $ 25 per day for home services.

  • $ 2,000 for funeral expenses.

    • What it covers: The PIP will cover medical costs, lost wages, disability, home services such as childcare and housekeeping, rehabilitation and funeral costs.

    In order to sue a faulty driver, your medical costs must be over $ 2,000, or your injuries must be serious, such as loss of a limb or paralysis.

    Minimum PIP: $ 8,000 per person in an accident.

    What it covers: The first $ 2,000 of medical expenses will be covered by PIP coverage. Once the $ 2,000 threshold is reached, your health insurance will become the primary payer and PIP will be the second payer.

    In order to sue an at-fault driver, the medical costs related to your injury must exceed $ 2,000, or you must have sustained a serious injury such as loss of limb or paralysis.

    Minimum PIP: Michigan offers several levels. Unlimited coverage is the default, but you can also choose:

  • Up to $ 500,000 in coverage.

  • Up to $ 250,000 in coverage.

  • Up to $ 50,000 in coverage if you’re enrolled in Medicaid and another member of your household has insurance that will cover injuries from a car accident.

  • Turn off PIP medical coverage if you have Medicare and another member of your household has auto insurance or a health insurance policy that pays for injuries resulting from car accidents.

    • What it covers: Medical expenses from an accident related injury, as well as up to 3 years of lost wages.

    In order to prosecute an at-fault driver, you must have suffered serious injury or death from a car accident.

    Minimum PIP: $ 20,000 for medical coverage and $ 20,000 for loss of income protection.

    What it covers: Medical expenses and lost wages due to an accident, plus a death benefit of $ 2,000.

    Minimum PIP: $ 15,000 per person per accident.
    What it covers: Medical expenses for accident-related injuries, with the option of adding coverage for lost wages, alternative services such as housekeeping and childcare, funeral expenses and the payment of a death benefit.

    In order to prosecute a driver at fault, you must sustain serious injury, such as loss of a limb or severe scarring, in a car accident.

    Minimum PIP: $ 50,000 per person (this is also the maximum amount of PIP available).

    What it covers: Accident-related medical expenses, 80% of lost wages due to accident-related injury, up to $ 25 per day for household expenses up to 1 year after the accident and a death benefit of $ 2,000.

    In order to prosecute an at-fault driver, your injuries in a car accident must be serious, such as loss of a limb or paralysis.

    Minimum PIP: $ 30,000 per person in an accident.

    What it covers: Medical expenses, lost wages and funeral expenses.

    In order to sue an at-fault driver, the medical costs related to your injuries must exceed $ 2,500, or you must have suffered serious injuries such as loss of a limb.

    Minimum PIP: $ 15,000 per person in an accident.

    What it covers: Medical expenses, 70% of lost wages, funeral expenses and alternative services such as childcare.

    What it covers: Medical expenses for injuries sustained as a result of an accident.

    In order to prosecute a driver at fault, the injuries you sustain in an accident must be serious, such as loss of a limb or paralysis.

    Minimum PIP: $ 3,000 per person.

    What it covers: Medical expenses for injury related to an accident, including surgeries, x-rays, dental services, rehabilitation services and hospital services. It also covers up to 85% of lost wages, or $ 250 per week (whichever is less), $ 20 per day for up to one year for household services, funeral expenses and a death benefit of $ 3,000.

    In order to sue an at-fault driver, the medical costs related to your injury must exceed $ 3,000, or the injuries you sustained must be serious, such as loss of a limb or paralysis.

    PIP is optional or can be canceled in 8 states plus Washington, DC

    Eight states plus Washington, DC, offer optional personal injury protection or allow drivers to waive it in writing. Use the table below to see how these states handle PIP coverage.

    For more information on how PIP coverage works in these states, choose a state below:

    Minimum PIP: Insurers must offer at least $ 5,000 in PIP.

    What it covers: Drivers in Arkansas can choose to have their PIP cover medical payments, funeral expenses, and lost wages.

    Minimum PIP: With the exception of motorcycles, all vehicles require a minimum of $ 10,000 in PIP, but can be canceled in writing.

    What it covers: Medical expenses, up to $ 200 per week in lost wages, replacement services and death benefits.

    In order to prosecute a driver at fault, your medical costs must be over $ 1,000 or your injuries must be serious, such as loss of a limb or paralysis.

    Minimum PIP: $ 2,500 minimum, but can be canceled in writing.

    What it covers: Medical costs, 85% of lost wages and alternative services such as housekeeping or childcare.

    Minimum PIP: If you purchase auto insurance, you must purchase a minimum of $ 1,000 in PIP, which is called medical payment coverage.

    What it covers: Medical expenses for injuries sustained in an accident.

    South Dakota has no minimum requirements for PIP or medical payments. If you choose to add it to your policy, it will pay for medical and funeral expenses resulting from an accident.

    Minimum PIP: All Texas auto insurance policies come with $ 2,500 in PIP, but this can be set aside in writing.

    What it covers: Medical expenses, lost wages and alternative services, such as housekeeping or childcare.

    There are no minimum PIP requirements, also known as medpay, in Virginia.

    What it covers: Medical expenses for injuries related to an accident.

    All auto insurance companies are required to offer $ 10,000 in PIP, but drivers can waive it in writing.

    What it covers: Medical expenses, up to $ 200 per week in lost wages, alternative services, such as housekeeping and childcare, and funeral expenses.

    PIP is optional in Washington, DC

    What it covers: Medical expenses, lost wages and funeral expenses.

    Is personal injury protection the same as medpay?

    While medical payments coverage, better known as medpay, pays for the medical costs of accident-related injuries regardless of the fault, it does not provide the additional financial benefits that PIP offers, such as coverage. lost wages, funeral expenses, childcare or cleaning. expenses.

    Medpay is also optional coverage. Some states, such as Florida, Kansas, Massachusetts, and Michigan, offer both PIP and medpay. And if medpay is available, it may be a good idea to add it to your policy as it can cover your PIP deductible.


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