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How Does Personal Injury Protection (PIP) Work?

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The Basics About PIP

What Does Personal Injury Protection Cover?

Personal injury protection (PIP) helps pay for your: 

  • Medical and hospital bills;
  • Ambulances;
  • Lost wages;
  • Death benefits;
  • Funeral expenses;
  • Child care and other essential services;
  • Therapy and rehabilitation;
  • Psychiatric and psychological services;
  • Prescription medications;
  • Prosthetic devices;
  • Other costs not covered by your health insurance company. 

In some instances, PIP might even cover the deductible for your health insurance.

PIP pays out for you as the driver, as well as any passengers in the vehicle at the time of the accident. It will even cover you while walking as a pedestrian or riding your bicycle.

Personal injury protection is also commonly referred to as no-fault insurance since each driver files a claim with their own insurance company, regardless of who’s responsible for the accident. Comparatively, in an at-fault state, injuries and property damage are paid out by the at-fault party’s bodily injury and property damage liability coverages.

What Doesn’t Personal Injury Protection Cover?

Like other coverages under your auto policy, personal injury protection has a minimum coverage limit, which can vary by state. Insurance companies also typically limit PIP coverage to a per accident maximum. And once you exceed this amount, you or your health insurance will need to pick up the remainder.

Furthermore, when it comes to exclusions, PIP insurance won’t help cover:

  • Property damage;
  • Injuries to the driver or passengers in another vehicle;
  • Accidents or injuries sustained while committing a crime;
  • Injuries incurred while you were driving for remuneration, such as ridesharing.

Depending on the state (more next), PIP also doesn’t apply if you’re involved in an accident while driving someone else’s car.

Which States Offer Personal Injury Protection?

PIP is required in the following states:

States Where Personal Injury Protection (PIP) is Required
State Minimum PIP Coverage
Delaware $30,000
Florida $10,000
Hawaii $10,000
Kansas $9,000
Kentucky $10,000
Massachusetts $8,000
Michigan $20,000
Minnesota $40,000
New Jersey $15,000
New York $50,000
North Dakota $30,000
Oregon $15,000
Pennsylvania $5,000
Puerto Rico $3,000
Utah $3,000


PIP is available but isn’t mandatory in the following states:

States Where PIP is Optional
State Minimum PIP Coverage
Arkansas $5,000
District of Columbia $50,000
Maryland $2,500
South Dakota $2,000
Texas $2,500
Virginia $2,000
Washington $10,000

How Much Does Personal Injury Protection Cost?

What you’ll pay for personal injury protection varies based on factors like coverage limits (the more coverage you choose, the higher your related premium will be), the state in which you live, your age, and your vehicle’s make and model.

With these details in mind, PIP can cost as little as $5 extra per month and up to $200 monthly. This means it’s not the most expensive coverage under an auto policy, nor is it the least.

How Can You Decide If You Should Purchase Personal Injury Protection?

In no-fault states where PIP is required, you’ll have to maintain the coverage under your auto policy. Your only choice will be to stick with the state minimums or increase your coverage.

What happens, though, if you live in an at-fault state that offers personal injury protection? How can you decide whether or not it’s worth the extra expense?

One significant factor to keep in mind is that PIP covers many of the same aspects as health insurance and disability insurance. As such, if you already have these coverages in place, PIP will only duplicate them and could leave you paying for coverage that you don’t need.

On the other hand, if you have low-quality health insurance that doesn’t provide much coverage for injuries and rehabilitation following an auto accident or have a high deductible, you might want to consider adding personal injury protection to your policy. Or, in a state where it’s required, you might want to increase your limits above mandatory minimums.

How You Can Learn More About Personal Injury Protection

Are you wondering whether or not you should add personal injury protection to your auto policy? Struggling with which limits best meet your needs? The friendly staff at IHS Insurance Group is here to help!

Need a FREE Quote or have questions regarding Auto Insurance Coverage? We have three convenient ways to reach us:

  1. If you prefer to talk to a licensed agent directly, please call (866) 480-5063.
  2. If you prefer to fill out a quick form and have an agent get back to you at your convenience, use the GET A FREE QUOTE.
  3. Lastly, for those that want an immediate quote, please click HERE.

We look forward to speaking with you today!

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