Personal PIP

Personal Injury Protection (PIP)

Personal injury protection (PIP), also known as “no-fault insurance”, helps cover expenses like medical bills, lost wages or funeral costs after a car accident, no matter who is at fault. Requirements vary from state to state.

Personal PIP

Example

If you and your spouse were involved in a car accident, and you had $5,000 of PIP insurance in place, your insurance would cover up to $5,000 in expenses for you and $5,000 in expenses for your spouse. If you had broken your leg and were taken to the hospital, that $5,000 could be used for an ambulance trip, receiving X-rays and having your leg treated, but that would be the maximum amount of money available from your PIP coverage across all costs.

Personal Injury Protection (PIP) car insurance covers:

Regardless of fault, if you are in an auto accident, your PIP insurance can help cover medical expenses for you and your injured passengers. Even if you are not driving, this coverage applies.

  • Medical Expenses covers medical bills for you and your passengers after a car accident, may even help cover your health insurance deductible.
  • Work Loss covers lost wages because you’re out of work due to an accident. Coverage can also apply if you’re self-employed and need to hire temporary workers to perform tasks.
  • Funeral Expenses covers funeral, burial or cremation expenses after a car accident.
  • Survivors’ Loss can help replace your lost income for your surviving dependents if you pass away in an auto accident.
  • Essential Services helps pay for acts that you’d normally perform if you weren’t injured, like childcare and housecleaning.

Personal Injury Protection insurance does not cover things like:

  • Any injuries from an accident while you were committing a crime, like fleeing the police
  • Injuries in an accident while you received payment for driving

At-Fault vs. No-Fault insurance

Examples of how collision insurance can help protect you:

Coverage in at-fault states, drivers who cause an accident must file a claim with their insurance company to pay for damages or injuries.

No-fault states require every driver to file a claim with their own insurance company after a car collision, no matter who’s at fault. In these states, you’ll need to buy PIP as a part of your auto insurance policy.

According to the Insurance Information Institute, there are currently 12 no-fault insurance states that require PIP coverage:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • North Dakota
  • Pennsylvania
  • Utah