Car Insurance After a PIP Claim

How to handle auto insurance following a Personal Injury Protection claim.

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Which car insurance companies are cheapest after a PIP 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.

  1. What is a PIP claim?
  2. Cheapest insurance providers after a PIP claim
  3. Cheapest companies after 2 PIP claims
  4. Additional resources

 

What is a PIP claim?

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:

  • Medical care and treatment
  • Lost wages
  • Ambulance fees
  • Medication costs
  • Death benefits

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.

 

How much PIP coverage should you have?

The amount of PIP coverage needed is often determined by your state. Michiganfor example, requires unlimited PIP. As a result, Michigan drivers face expensive car insurance costs. Other states, like Floridarequire PIP to cover 80% of medical bills and 60% of lost wages, up to $10,000.

 

 

What are the cheapest insurance companies after a PIP claim?

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 profileUSAA is the cheapest insurance provider after one PIP claim, followed by GEICO and State Farm.

Car Insurance CompanyAverage 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.

 

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Finding cheap car insurance after 2 PIP claims

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 company6-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.

 

Additional resources

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!

 


Need coverage after a PIP claim?

 

Should you file a PIP claim or use your health insurance?

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 Jerseyfor example, you can use your health insurance as your primary form of medical care if you elect to.

 

Med Pay vs. PIP:

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.

 

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Ava Lynch LinkedIn

Based in Austin, TX, Ava has been in the insurance industry as a licensed agent for 4-plus years. Ava is currently one of The Zebra’s resident property insurance experts and has been featured in publications such as US News Report, GasBuddy, and Yahoo! Finance.