Personal Injury Protection: Standard Auto Insurance Coverage Explained

Personal injury protection (PIP), also known as no-fault insurance, is a component of an automobile insurance plan that covers medical expenses and other costs associated with injuries sustained in a car accident. PIP is designed to cover the policyholder's and their passengers' medical costs, regardless of who is at fault for the accident. In addition to medical expenses, PIP can also cover lost wages, funeral costs, and other related expenses. While PIP is required in some states, it is optional or not available in others. The coverage limits and requirements for PIP vary from state to state, with some states having specific provisions for how PIP interacts with health insurance.

What does personal injury protection cover?

Personal injury protection (PIP) covers medical expenses and other related costs if you or your passengers are injured in a car accident, regardless of who is at fault. PIP is also known as "no-fault insurance" and is required in some states.

Medical Expenses

PIP covers medical expenses for both the policyholder and their passengers, regardless of whether they have health insurance. This includes hospital stays, surgeries, nursing care, emergency care, X-rays, prescriptions, dental care, therapy, rehabilitation, psychiatric care, and more.

Lost Wages

If you are unable to work due to injuries sustained in the accident, PIP can provide reimbursement for lost wages. Most insurers pay up to 80% of your lost wages, up to a specified limit.

Funeral and Burial Expenses

PIP can help cover funeral, burial, or cremation expenses in the unfortunate event of a death resulting from a car accident.

Essential Services

If your injuries prevent you from performing everyday tasks, such as childcare, house cleaning, or lawn mowing, PIP may reimburse you for the cost of hiring someone to perform these services while you recover.

Death Benefits

PIP may also provide a small death benefit to the survivors of someone killed in a car accident. However, the amount is usually limited and may seem insignificant compared to a term life insurance policy.

It is important to note that PIP has coverage limits, and the specific benefits covered and their amounts can vary by state and insurance provider. Additionally, PIP does not cover property damage or injuries sustained while committing a crime or driving for work purposes.

Who does PIP insurance cover?

Personal injury protection (PIP) insurance covers the policyholder, their passengers, and their family members. This includes children in the policyholder's vehicle, as well as those riding the school bus. PIP insurance also covers pedestrians and cyclists struck by the policyholder's car.

In some states, PIP insurance also covers individuals in the policyholder's vehicle who do not own a vehicle and therefore do not have their own PIP coverage. Additionally, it may cover individuals who are not members of the policyholder's household if they don't have their own PIP coverage.

PIP insurance provides coverage for medical expenses, lost wages, and other related costs resulting from an accident, regardless of who is at fault. It ensures prompt payment for car accident injuries, bypassing the need to wait for a liability lawsuit to be resolved.

What's not covered by PIP insurance?

Personal Injury Protection (PIP) insurance 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. However, there are some important exclusions to PIP coverage that you should be aware of. Here are the key things that are not covered by PIP insurance:

• Bodily injuries to other drivers and their passengers: PIP insurance covers medical expenses for the policyholder and their passengers, but not for other drivers and their passengers involved in the accident.
• Injuries while driving for work purposes: If you are injured in an accident while using your vehicle for work purposes, such as delivering food or driving for a rideshare company, PIP may not cover your injuries.
• Injuries while committing a crime: PIP insurance does not cover injuries sustained while the insured person is committing a crime, such as fleeing the police.
• Damage to someone else's property: PIP insurance is designed to cover medical expenses and related costs. It does not cover damage to another person's property.
• Damage to your vehicle: Similar to property damage, PIP insurance does not cover damage to your own vehicle.

It is important to note that PIP coverage may vary from state to state, and it is always a good idea to review your specific policy to understand what is and isn't covered. Additionally, if you have health insurance, it may cover some of the expenses not covered by PIP.

Which states require PIP insurance?

Personal injury protection (PIP) is a component of car insurance that covers medical and other related expenses resulting from a vehicle accident. It is mandatory in some states as part of "no-fault auto insurance" laws, which restrict the ability to sue for car crash injuries.

As of December 2021, twelve US states require PIP coverage: Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. Eleven of these states are "no-fault" states.

In addition, Pennsylvania requires drivers to purchase $5,000 in medical benefits, although it does not specifically mention PIP. PIP coverage is also available but optional in seven additional states, plus the District of Columbia.

The minimum PIP coverage requirements vary by state. For example, in Oregon, the minimum PIP coverage is $15,000 per person, while in Michigan, drivers can choose between unlimited medical coverage or lower limits of $250,000 or $50,000.

While PIP is not required in all states, it is often a valuable addition to a car insurance policy, as it can help cover expenses such as medical deductibles, lost wages, and replacement services for tasks that cannot be performed due to injuries.

At-fault states where PIP is required

Personal injury protection (PIP) is a component of an automobile insurance plan that covers the healthcare expenses associated with a car accident. It is also known as "no-fault insurance" in reference to states that impose no-fault auto liability insurance laws, where this type of coverage is mandatory. In at-fault states, the driver who is responsible for the accident must compensate the other parties for damages and injuries.

There are a few at-fault states in the US where PIP is required:

Kentucky

In Kentucky, the minimum PIP coverage is $10,000 for medical expenses, lost wages up to $200 per week, replacement services, and survivor's benefits. You can sue if your medical expenses are over $1,000 or if there is a broken bone, injury, or death.

New Jersey

New Jersey requires a minimum of $15,000 in PIP coverage. You can collect up to $250,000 for certain injuries, regardless of your PIP limit. This includes permanent or significant brain injury, spinal cord injury, or disfigurement.

Pennsylvania

Pennsylvania is another at-fault state where PIP is required. The minimum PIP coverage required is $5,000. You can sue if you have a "limited tort" policy and have suffered serious impairment to a significant bodily function, or if you were injured as a pedestrian, on a motorcycle, or as a passenger on a commercial vehicle.

Utah

In Utah, drivers must have at least $3,000 in PIP coverage for medical bills, lost wages, $1,500 for funeral expenses, and $3,000 in death benefits to heirs. You can sue if your medical bills exceed $3,000 or if the accident caused death, dismemberment, permanent disability, permanent impairment, or permanent disfigurement.

Frequently asked questions