Personal injury protection insurance — also called PIP or no-fault insurance — is a form of auto insurance designed to help pay for medical bills, lost wages and other expenses if you or your passengers are injured in an accident. PIP coverage pays eligible expenses up to your chosen policy limits, regardless of who is at-fault for the accident. It is required in many states, though it may be offered as optional coverage in others.
In addition to your own car accidents, you can tap PIP coverage if you or your covered family members are injured in an accident in someone else’s car, while riding a bike or walking down the street.
What does PIP cover?
PIP insurance covers a wide range of medical expenses and other services related to an eligible accident. These could include:
- Copays.
- Deductibles.
- Prescription medication.
- X-rays, scans and other diagnostic testing.
- Ambulance, surgical and hospital fees.
- Dental and optometric care.
- Rehabilitation and nursing costs.
- Medical supplies and prosthetics.
- Essential services (childcare, grocery delivery, yardwork, transportation, house cleaning, etc.)
- Funeral expenses.
- Disability and lost wages.
- Death benefits.
Be sure to read your policy documents carefully to understand exactly what’s covered. In some states, drivers must meet a deductible before PIP insurance kicks in.
What does PIP not cover?
PIP insurance does not cover expenses that aren’t related to an injury you or your passengers suffer in an accident. These can include:
- Damages to or theft of your vehicle.
- Someone else’s vehicle or property damages.
- Another driver’s injuries.
In addition to PIP, most states require drivers to carry minimum bodily injury liability and/or property damage liability insurance. These coverages are intended to pay for someone else’s injuries or damages if you are at-fault for the accident.
Most insurers will also allow you to purchase optional comprehensive, collision or uninsured/underinsured motorists coverages for additional protection.
Read more: Common types of auto insurance
How does PIP insurance work?
PIP coverage is often called no-fault insurance because it protects you no matter who is at-fault for your injuries. If you’re involved in a car accident and seek medical care, are forced to miss work or even need help with household tasks while you recover, PIP insurance can step in to help with these expenses.
Contact your insurer to activate your PIP coverage; if you’re already filing a claim against your own policy, this process may be automatic. Depending on your state, eligible medical expenses may first be paid by the at-fault driver’s liability coverage before your no-fault coverage kicks in.
PIP vs. liability coverage
Some form of liability insurance is required in nearly all states. It is designed to pay for the other driver’s property and bodily injury expenses if you’re deemed at-fault for an accident. Your liability insurance does not cover your costs, regardless of which driver is responsible for the accident. PIP insurance covers your medical bills and related expenses.
Your state may require a combination of liability and first-party PIP insurance, meaning you’re protected no matter how the accident occurs or who is at-fault.
PIP vs. MedPay
Medical payments coverage, or MedPay, and PIP both help pay for the policyholder’s own medical expenses after an accident. Both coverages also kick in regardless of accident fault.
One important difference between PIP and MedPay is that MedPay is only required in two states (Maine and New Hampshire), while PIP is required in 15. MedPay coverage is also limited to medical expenses and sometimes funeral costs, while PIP includes medical expenses as well as lost wages and essential services such as house cleaning or yard work. PIP may also offer a death benefit paid out to your family if you’re killed in an accident. Lastly, MedPay doesn’t require a deductible, but some PIP policies have an upfront threshold that must be met.
Depending on your insurer and where you live, you likely won’t be able to buy both PIP and MedPay — but if you have one you don’t really need the other.
Where is PIP auto insurance required?
PIP is required in no-fault states and some at-fault states. It may be offered as optional coverage in some other states.
PIP insurance is required
| State | PIP Minimum Requirement |
| Delaware | $15,000 per person/$30,000 per accident |
| Florida | $10,000 |
| Hawaii | $10,000 per person |
| Kansas | $4,500 for medical expenses.$900/month for one year for disability insurance.$25/day in substitution benefits (up to one year).$2,000 for post-mortem expenses.$4,500 for rehabilitation services.$900/month for survivor disability/loss of income. |
| Massachusetts | $8,000 |
| Michigan | $50,000; drivers with qualified health insurance plans may opt out. |
| Minnesota | $40,000 |
| New Jersey | $15,000 |
| New York | $50,000 |
| North Dakota | $30,000 |
| Oregon | $15,000 |
FAQs
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Do I need PIP insurance if I have health insurance?
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Will my insurance rates go up if I use my PIP coverage?
Stephanie Colestock is a seasoned writer specializing in personal finance. With over 14 years of experience, she crafts insightful and accessible content on a wide range of financial topics, including insurance, credit and debt management, banking, investing, retirement planning, and household finances.
Her bylines appear in top-tier publications such as TIME, Fortune, MSN, Forbes, USA Today, Money, Fox Business, and CBS. Stephanie\\\\\\\’s deep understanding of complex financial concepts and her ability to communicate them clearly have made her a trusted voice in the industry.
When she’s not writing, Stephanie enjoys helping individuals make smarter financial decisions through her engaging and well-researched articles.
Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.
Lacie Glover is a Lead Writer and Editor with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.
