If you’re looking for car insurance, then you may end up confused by the huge variety of policies and forms of coverage that you’ll come across. Over the course of this guide, we’re going to take a closer look at Personal Injury Protection (PIP) insurance. We’ll discuss what it is, what it covers, and a lot more.
Getting in to a car accident can be painful. No one wants to get hurt on the road. But other than physical pain, hospital visits can get quite painful as well, and you need to financially plan for the worst case scenario so you don't get caught off-guard.
Personal Injury Protection, or PIP Insurance Coverage (also known as no-fault insurance coverage), is a car insurance extension that covers and helps you minimize the costs of medical bills if you get in to a car accident and get physically injured.
Personal Injury Protection insurance is also one of the lesser-known forms of car insurance. Since PIP coverage isn’t available in every state, you may not even require PIP coverage to drive legally, but we’ll cover those details later on in this guide.
As the name suggests, PIP coverage covers medical expenses in the case of a car accident. While bodily injury liability exists to cover any injuries sustained by other parties in a vehicle collision, PIP is designed to cover your medical bills if YOU end up getting injured in a car accident.
Personal injury protection is also referred to as no-fault insurance because in a no fault state, the responsibility for an accident does not have to be assigned before insurers pay out, which is meant to speed up the process of getting claim payments for medical treatment or vehicle repairs.
Personal Injury Protection insurance coverage is typically only available in no fault states. In most no fault states, this means that personal injury protection is required by every driver, to a certain minimum level of coverage determined by the state. Along with medical bills, PIP coverage can also be used to pay for funeral expenses after a deadly collision, G-d forbid.
Other than dire costs like those, PIP can also pay for your lost wages if you end up injured and unable to work because of the accident that you’ve been through. There are a few states where PIP is optional, including Washington, South Dakota, Texas, New Hampshire, and Virginia.
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Here are the things that personal injury protection covers:
The number 1 thing that PIP is covering is medical expenses that have resulted from a vehicle collision. These bills can get pricey, and you don’t want to end up stuck in debt just because you got into a car crash. Being able to cover medical expenses in a timely manner is one of the main reasons that several states adopted no fault insurance.
Losing out on months of wages can be just as devastating as being saddled with debt because of your hospital bills. For this reason, PIP is also designed to cover lost wages, up to a certain limit. The exact amount that is covered will depend on how much you pay for your car insurance policy and the provider you got it from.
If a tragedy happens and you or one of the occupants of your vehicle was killed in a collision, the ensuing funeral expenses may be too much for grieving relatives to handle. In this occasion, a PIP insurance policy will pay out and cover any funeral costs that result from the accident.
If you end up disabled or you must recover from an accident so that you can accomplish basic household tasks, your PIP coverage should also be able to pay for substitute services. For example, if you now require a maid to properly clean your house, your car insurance may end up paying for one.
Here’s what PIP coverage won’t end up covering:
If your vehicle gets damaged in a collision, you won’t get any money so that you can repair it. If you wish to cover your vehicle damages in the event of an accident, this is what collision insurance coverage is for. The amount that you get in a payout will depend on how much you pay for your collision coverage though.
PIP also won’t cover you from having to pay other people for property that was damaged in a collision. This is one of the main reasons that drivers must carry at least a minimum level of property damage liability coverage, as that will pay out for any property that was affected in a car accident that you were involved in.
Every PIP policy has a limit to the amount of coverage that you can be paid out to cover medical expenses. If you reach or exceed this limit, anything beyond it will be your responsibility to pay out of pocket. This is why it’s crucial to make a compromise between monthly cost and your coverage limits.
PIP insurance coverage also won’t pay out if your car ends up getting stolen. If you’d like to be protected from vehicle theft, then you’ll have to have comprehensive car insurance coverage as part of your policy as it will cover you in the event where your vehicle is stolen, vandalized, or damaged by weather conditions.
Since personal injury protection (PIP) is mandated in over a dozen states, there is a legal minimum amount of coverage that you’ll need. While there is no flat minimum for PIP, the average tends to be around $15,000 of coverage to reach the minimum so that you can legally drive.
However, some states have much higher minimum levels of personal injury protection coverage, including New York, Minnesota, and North Dakota. Here’s a table showcasing the minimum level of PIP coverage you’ll require across a range of different states:
State | Minimum coverage |
---|---|
Delaware | $15,000 |
Florida | $10,000 |
Hawaii | $10,000 |
Kansas | $4500 |
Massachusetts | $8000 |
Michigan | Dependent on circumstances |
Minnesota | $40,000 |
New Jersey | $15,000 |
New York | $50,000 |
North Dakota | $30,000 |
Oregon | $15,000 |
Pennsylvania | $5000 |
Utah | $3000 |
Remember that if you don’t meet your state’s minimum amount of PIP coverage, you may end up having your license suspended for driving underinsured. Minimums are also subject to change over time, so while we always strive to keep you up-to-date, always be sure to confirm the numbers through independent research.
If you already have health insurance or medicare, PIP Insurance may not be needed. However, without a proper health insurance plan that specifically covers auto accidents or Personal Injury Protection coverage, the full medical costs caused by an auto accident related injury will come out of your own pocket… UNLESS , you get Personal Injury Protection, aka PIP insurance, also known as no fault insurance.
You may want to ask yourself the following questions while exploring your options:
Personal Injury Protection (PIP) coverage is an extension of auto insurance that covers medical costs, and in some events, also lost salaries due to an injury caused by auto accidents.
PIP insurance is also known as no-fault insurance coverage, since it is being paid with no relation to any fault and legal liability.
However, the PIP insurance premium rates of the policyholder who filed the claim, may be increased following its activation, as with many other insurance products.
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PIP insurance coverage can cost anywhere from as low as $40 per month to few hundreds. It depends on the different factors that determine your car insurance rates, as well as the coverage level that you have chosen.
PIP insurance coverage is currently mandatory in the following states:
The following states require auto insurers to provide PIP insurance coverage, however these states also let the policyholder reject the PIP in writing:
I was hopeful about going with Travelers. My cousin oversees the building of large hotels (the W and Virgin in Nashville) and told me that is who he had used commercially. But after having roof damage from a storm, I have had a really bad experience. From the very first person I dealt with, it became quickly clear from my first dealings and was confirmed throughout the process, is how little they care about the people they insure and how they truly want to pay as little as possible. While my neighbors were having positive experiences with their insurance companies after the storm, mine has been terrible. I would highly recommend staying far away from Travelers Insurance and going with literally anyone else but them. —Jason McAnally
AAA is only good if you never have to use them. My daughter was borrowing my car and got hit by a hit-and-run driver who left the scene. AAA would not pay for damages on my car because she was not on the policy and I didn't have full coverage on my car I did have uninsured motorists but they still would not pay the claim so I have a wrecked car and now AAA is canceling my insurance What a waste of time and money. We reported to insurance board and still nothing was done. I'm going back to allstate, atleast they pay claims.
The quote they gave me was not the correct price. it turned out to be twice the amount they said. Plus the agency is in California 1500 miles away and I received bad customer service.
Horrible, we are DRIV3 Rentals a Car Rental Company in Los Angeles California. One of our clients purchased a Bonzah policy to rent a vehicle from us. An accident occurred where there has been significant damage to our 2021 BMW M4, we proceeded to file a claim with Bonzah. Let me just say the way this company handles claims is from the stone age. They do not contact you anywhere except emails. Our company has been in a 100+ email chain with Paul and Art from Bonzah for at least a month. They have confused our claim with other claims and at times just simply not responded back at all. We supplied all the necessary information needed for the claim and everything seemed ok. Fast forward to last week out of no where Paul stops answering so we call him over and over until he answers at this point he not once told us this by the way that they pulled the police report and our driver isn't listed, this is false as I immediately went to the LAPD police station and found out the report Paul pulled was filed online from one of the other drivers and not an official report from the officer on the scene, the officer on the scene made a statement in which debunks that whole claim and in fact our driver was the driver. I have never in my 20 years in the auto industry been accused of anything like this furthermore Paul stating that oh we don't know if your driver knows the other driver and they could have planned this. Insane really, Paul stated that if we could get a statement from the officer he would expedite our claim and damages check, Paul, Art and Bonzah has since started to ignore us. They don't answer calls, emails, text messages anything for almost 2 weeks now. How ironic that once we debunk their claim of our client not being the driver they stop responding. Don't use this company, stay far away.
We have been with progressive for 18+ but Have to give a one star with this experience. We hit a big rock on the highway. Randell Fergen repair rep . argued with me; claimed I was off roading in my car, which I have never done . Randell told me “this was not an isolated incident”. Because my other wheels had scratches according to him. The auto shop they picked and Randell told me it the wheel just needs a balance . Randell quoted me the price I would have to pay for the balance. I took the car to Discount Tire since the balance is covered. Discount told me “the wheel is bend badly” We called back to the rep Kiera Washington to update her and ask for a new repair rep. She said she could not and when I asked to speak to her supervisor she said “ I’m not dealing with you” and hung up on me ????