Many people who are trying to better understand their car insurance coverage have asked the question— what is personal injury protection coverage? Personal injury protection coverage (PIP) can be an important part of your insurance coverage in the event of a car accident, particularly if you’re injured in an accident. It covers medical expenses and much more for you and your passengers. Fortunately, even some cheap car insurance providers can help you purchase PIP coverage without breaking the bank.
What is personal injury protection coverage (PIP)?
So, what is personal injury protection coverage? Personal injury protection, usually referred to as PIP and also known as ‘no-fault’ insurance, will cover the medical bills and costs associated with necessary physical rehab for you and any passengers in your vehicle who are injured in a car accident, up to the PIP limit on your policy.
What makes personal injury protection coverage different from standard bodily injury liability insurance or MedPay is that liability insurance pays for the medical expenses of people in other vehicles when you’re at fault for an accident. PIP, meanwhile, covers you or people in your car when there’s an accident, regardless of who’s at fault. States that offer or require PIP are known as 'no fault' states, which means that your insurance can cover your medical bills and lost earnings regardless of who was at fault in the incident. The no-fault states are District of Columbia, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
You can also be covered by PIP insurance if you’re riding as a passenger in someone else’s car while they’re driving, or if you’re struck by a vehicle while you’re either walking or biking.
Sometimes, your PIP insurance might have some crossover with your standard health insurance, and we’ll get to that later. But for now, just know that PIP is designed to specifically cover injuries related to car accidents. These can sometimes be excluded from. or not fully covered by, some health insurance policies.
When do you need PIP insurance?
Personal injury protection coverage can be important in some of the cases outlined above, but in the states where it’s a legal requirement, you must have it. PIP insurance is required in the following states:
Delaware
Florida
Hawaii
Kansas
Kentucky
Maryland
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania
Utah
If you live in one of these states, then you’ll be required to have PIP coverage as part of your car insurance policy.
Do you need PIP insurance if you have health insurance?
If you live in a state that requires you to have PIP coverage, then this question is a moot point. But even in the states where PIP isn’t required, PIP insurance can still be extremely helpful and offer you benefits and protection you won’t always get from your health insurance alone. For example, did you know that PIP insurance can cover funeral costs and wages or earnings you might lose as a result of injury and treatment that occurs due to an accident?
Here's an example scenario: Let’s say you’re involved in a car accident that leaves you injured enough that you require hospitalization, doctor visits, and missing work for some time as you recover. Your health insurance might cover the injuries themselves and any associated medical and rehabilitation costs, while your personal injury protection coverage would cover other financial losses that result from the accident and injury— money lost while you were unable to work, for example.
This is why it’s worthwhile to consider PIP insurance even if it's not required by your state and even if you already have health insurance. It could help you avoid unexpected costs in the case of a serious accident.
What does personal injury protection insurance cover?
Now that you have more of an answer to the big question—what is personal injury protection coverage— let’s go into a bit more detail on what exactly it can cover.
PIP insurance will cover medical procedures, treatment, and rehabilitation for injuries sustained as a direct result of your accident. In some cases, it can also cover your health insurance deductible. Which specific costs will be covered under your personal injury protection coverage will vary depending on what your state requires by law, but in general, it tends to cover the following areas:
Hospital Stays
If you’re seriously injured as a result of an accident, you’ll need to spend some time in a hospital or medical facility. Your PIP coverage will cover costs associated with these stays, up to the limit on your PIP coverage.
Surgery & Operations
If your injuries are serious, they may require an operation or other surgical procedure. Your PIP coverage will help pay for these procedures.
Doctor Visits
Long-term recovery often requires ongoing doctor visits and check-ups, and PIP will help cover these for any visit related to the injuries sustained in an accident by you or one of your passengers.
Ongoing Care & Rehab
If you experience injuries that require ongoing rehab or inpatient/outpatient care, your rehabilitation costs can quickly rack up. That’s why PIP can be so useful for covering these costs, for everything from physical therapy to other ongoing rehab needs.
Lost Earnings
Injuries can cause you to miss work while you recover, and personal injury protection coverage will help you avoid losing out on wages or other income.
Funeral Costs
If the worst happens and you or someone in your vehicle dies as a result of the accident, PIP will help cover funeral costs so that they don’t become a financial burden on the deceased’s surviving loved ones.
Additional Expenses
Other costs can also sometimes be covered by PIP, including the cost of outsourcing household tasks that you can no longer manage due to your injury. This might include at-home childcare, lawn care, house cleaning, or laundry.
Personal Injury Protection Benefits
As you can see, the benefits of having personal injury protection coverage can be massive. If you’re in a car accident and your health insurance company doesn’t cover all the costs of your medical bills, PIP can be important when it comes to protecting you from extreme costs. It can help with covering medical expenses, lost wages, and other injury-related expenses in the event of an auto accident.
How much personal injury protection is required in my state?
Whether you live in a fault or no-fault state, you’ll want to know how much PIP coverage is required by your state's laws. The following states require at least some level of PIP coverage, and their minimum requirements are included below:
$15,000 per person
$30,000 per accident
$5,000 funeral expenses
Florida
$10,000 per person
Hawaii
$15,000 per person
Kansas
$4,500 per person for medical expenses
$4,500 for rehab expenses
$2,000 funeral expenses
$900 per month for disability/loss of income
$25 per day for in-home expenses
Kentucky
$10,000 per person
Maryland
$2,500 per accident
Massachusetts
$8,000 per person
Michigan
Unlimited medical expenses
Up to $5,189/month in lost income
$20 per day for household services
Minnesota
$20,000 for medical expenses
$20,000 for loss of income
New Jersey
$20,000 for medical expenses
$20,000 for loss of income
$50,000 per person
$2,000 death benefit
80% of lost income up to $2,000/month
$25 per day for services
North Dakota
$30,000 per person
Oregon
$15,000 per person
Pennsylvania
$5,000 per accident
$3,000 per person
$1,500 per person for funeral expenses
$3,000 death benefit
$250/wk or 85% of lost income (whichever is less)
$20 per day for household services
Having personal injury protection coverage as part of your car insurance plan can be important, and in many states, it’s essential. If you’re looking for cheap car insurance quotes online, you can find them at Freedom National.
