Orlando Harmon
Personal injury protection (PIP) is an optional coverage that can be added to an auto insurance policy to help pay for medical and hospital expenses, lost wages, and funeral costs after a car accident, regardless of who is at fault. While PIP is not mentioned on the PacificSource website, it is known that their health plans cover individuals, families, and older adults, and include features such as on-demand access to doctors and no referrals being required to see specialists.
| Characteristics | Values |
|---|---|
| What does it cover? | Medical expenses, lost wages, rehabilitation costs, replacement services, funeral expenses, and survivor benefits. |
| Who is covered? | The person named on the policy, household residents, step or foster children, and any non-family passengers or pedestrians involved in an accident. |
| How much does it cover? | Medical and hospital expenses: Up to $10,000 for each person injured in an auto accident, with additional coverage available. Funeral expenses: Up to $2,000 for each person who died. Wage loss: Up to $200 per week ($10,000 total), with additional coverage available. Loss of services: Up to $200 per week ($5,000 total), with additional coverage available. |
| What does it not cover? | Bodily injuries to the other driver and their passengers, injuries from an accident while committing a crime, damage to someone else's property, and damage to your vehicle. |
What You'll Learn
What does personal injury protection cover?
Personal injury protection (PIP), also known as no-fault insurance, is an optional coverage that can be added to your auto insurance policy. It covers medical and related costs resulting from an accident, no matter who is at fault. PIP covers the policyholder and their passengers, even if they don't have health insurance. It also covers pedestrians involved in an accident.
PIP covers medical expenses, including surgeries, medications, diagnostics (x-rays, CT scans, etc.), prosthetics, nursing care, physical therapy, and medical devices. It also covers lost wages, income replacement, and the cost of hiring someone to perform necessary services that the injured party can no longer perform, such as childcare or household maintenance. Additionally, PIP can cover funeral and burial expenses in the event of a fatality.
The amount of coverage provided by PIP varies by state and insurance company. In Texas, for example, insurance companies are required to offer a minimum of $2,500 in PIP coverage, with the option to increase to $5,000 or $10,000. PIP coverage typically has a time limit, such as three years from the date of the accident, and there may be per-person maximum coverage limits.
It's important to note that PIP does not cover everything. It typically does not cover injuries caused by the use of recreational or off-road vehicles, motorcycles, or intentional injuries caused by the insured person. It also does not cover situations where the insured person is injured while committing a felony or while participating in organized racing activities.
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What doesn't personal injury protection cover?
Personal injury protection (PIP) is a form of auto insurance that covers medical costs, lost wages, and other related expenses if you're hurt in a car accident. PIP covers you and your passengers, regardless of who is at fault for the accident. While PIP is not mandatory in all states, it is required in some, and in others, it is offered as an optional add-on to auto insurance policies.
There are certain situations where PIP does not apply. Here are some things that are typically not covered by PIP:
- The injuries of other drivers in a collision.
- Any injuries sustained while committing a crime, such as fleeing the police.
- Injuries sustained while receiving payment for driving, such as in a racing activity or as a delivery driver.
- Intentional injuries caused by the insured person.
- Services that your insurance company decides are not related to the accident or incurred within a certain time frame (usually three years) after the accident.
- Property damage—PIP only covers medical and related expenses, not damage to your vehicle or other property.
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Who is covered by personal injury protection?
Personal injury protection (PIP) covers the policyholder and their passengers, regardless of whether they have health insurance. This includes the cost of medical care, lost wages, and other related expenses resulting from a car accident, even if the policyholder was responsible for the crash. PIP also covers pedestrians involved in an accident.
In no-fault states, if a policyholder is injured in a car crash, their PIP policy will pay for their medical care, regardless of who caused the accident. PIP coverage can also be beneficial if the other driver doesn't have insurance.
PIP coverage may also extend beyond the car, covering injuries sustained, for example, as a pedestrian or by-stander.
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How much does personal injury protection cost?
The cost of personal injury protection (PIP) insurance depends on several factors, including the coverage level, age, type of vehicle, insurance company, and location. PIP insurance is relatively cheap, with drivers spending anywhere from $5 to $50 per month for the coverage limits. The more vehicles on your policy, the more you'll pay.
In Texas, for example, the cost of PIP insurance varies depending on where you live, the amount of coverage desired, and your driving history. It is recommended to compare quotes from several insurers before selecting a policy. The cost of PIP insurance typically increases slightly if you purchase more coverage than the minimum required.
In Washington state, PIP coverage can provide up to $10,000 for medical and hospital expenses for each person injured in an accident, with an additional coverage option of up to $35,000. It also includes up to $2,000 for funeral expenses per person, up to $10,000 for income replacement coverage, and up to $5,000 for loss of services.
In Florida, the minimum personal injury protection policy is $10,000, which covers 80% of medical and disability expenses and up to $5,000 in death benefits.
In Oregon, PIP coverage includes up to $15,000 per person, $3,000 per month for lost wages, essential services, childcare, and a death benefit of up to $5,000.
The cost of PIP insurance is influenced by factors such as the state requirements, the insurance company, and the individual's circumstances. It is important to consider the coverage limits and weigh them against the potential costs of medical services and lost wages in the event of an accident.
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Is personal injury protection mandatory?
Personal injury protection (PIP) is mandatory in some states and optional in others.
States Where PIP is Mandatory
Personal injury protection is required in 15 states and Puerto Rico. These include:
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
- Pennsylvania
- Utah
States Where PIP is Optional
In other states, PIP is optional. These include:
- Arkansas
- Connecticut
- District of Columbia
- Pennsylvania
- Texas
- Washington
States Where PIP is Not Available
In some states, PIP is not available at all.
PIP covers medical expenses, lost wages, and other related costs if you or your passengers are injured in an auto accident, regardless of who is at fault. This includes:
- Medical and hospital expenses
- Wage loss
- Rehabilitation costs
- Replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning
- Funeral expenses and survivor benefits
It's important to note that PIP doesn't cover everything. It typically doesn't cover:
- Bodily injuries to the other driver and their passengers.
- Injuries in an accident if you are driving for work purposes.
- Injuries from an accident while you were committing a crime.
- Damage to someone else’s property.
- Damage to your vehicle.
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Frequently asked questions
Personal injury protection (PIP) auto insurance covers medical expenses and related costs resulting from an accident, no matter who caused it. It also covers the policyholder's passengers, even if they don't have health insurance.
PIP insurance generally covers medical expenses, lost wages, rehabilitation costs, replacement services (e.g. childcare and house cleaning), and funeral expenses.
PIP insurance does not cover bodily injuries to the other driver and their passengers, injuries sustained while driving for work purposes, injuries from an accident while committing a crime, damage to someone else's property, and damage to your vehicle.
PIP is required in some states as part of "no-fault auto insurance" laws. In other states, it is optional, and in others, it is unavailable.
You can refer to your PacificSource member handbook or policy, which provides specific information about the benefits and services covered by your plan. This information is also available through their secure member portal, InTouch for Members.
