How to handle auto insurance following a Personal Injury Protection claim.
On average, one Personal Injury Protection (PIP) claim will raise your car insurance premium $4 per year. Let’s explore the ins and outs of car insurance with a PIP claim, including what Personal Injury Protection covers, which companies offer the most affordable PIP coverage, and some helpful tips on how to use this insurance.
A PIP claim occurs when you use Personal Injury Protection to cover damages caused as a result of a car crash. This coverage, which is required in 12 no-fault states, is designed to cover the below expenses for you and your passengers:
This coverage does not apply to any property damage or bodily injury inflicted upon drivers outside of your vehicle. Moreover, the coverage applies no matter which driver is deemed at-fault.
The amount of PIP coverage needed is often determined by your state. Michigan, for example, requires unlimited PIP. As a result, Michigan drivers face expensive car insurance costs. Other states, like Florida, require PIP to cover 80% of medical bills and 60% of lost wages, up to $10,000.
The amount you will pay after a PIP claim will vary considerably depending on your company and the circumstances of the claim. We generated a national average rate after a PIP claim by using a sample driving profile. USAA is the cheapest insurance provider after one PIP claim, followed by GEICO and State Farm.
| Car Insurance Company | Average 6-month premium |
| Allstate | $1,021 |
| Farmers | $716 |
| GEICO | $657 |
| Liberty | $841 |
| Nationwide | $675 |
| Progressive | $790 |
| State Farm | $664 |
| USAA | $487 |
If you do not qualify for USAA, GEICO will be your next cheapest option at $657 for a six-month policy.
The amount you will pay for car insurance after two PIP claims may vary considerably depending on your driving profile, location, and the circumstances surrounding the incidents. We generated a typical driver profile in order to provide average rates after PIP claims.
See below rates from major insurance companies after two PIP claims.
| Insurance company | 6-month premium (no violations) | 6-month premium (2 PIP claims) |
| Allstate | $1,016 | $1,021 |
| Farmers | $709 | $729 |
| GEICO | $657 | $690 |
| Liberty Mutual | $838 | $844 |
| Nationwide | $675 | $675 |
| Progressive | $790 | $900 |
| State Farm | $664 | $664 |
| USAA | $487 | $502 |
USAA increases rates by just $15 per six-month policy period after a second PIP claim. Progressive increases rates by an average of $200 every six months. If you do not qualify for USAA coverage, consider State Farm and Nationwide as alternatives.
Your experience after a PIP claim may vary considerably. Because of the high cost of claims payouts, many companies drop clients should they accumulate more than three PIP claims in a three-year period. If you’re currently in a situation where you cannot find insurance because of your driving record, your best option is to shop with non-standard insurance companies.
These smaller insurance companies sometimes provide coverage to a higher-risk pool of clients. If you’re interested in speaking to an agent to find coverage after a PIP claim, call 888-444-2833 or click below!
If you are injured in a car accident, your health insurance will usually require you to use your PIP coverage as your primary and potentially use your health insurance as the secondary. However, some states have exemptions to this rule. In New Jersey, for example, you can use your health insurance as your primary form of medical care if you elect to.
Medical payments coverage, or Med Pay, provides fewer coverage options than PIP. While they both provide medical and funeral benefits, Med Pay provides no coverage for loss of wages or living expenses.
