Understanding Personal Injury Protection Insurance (PIP)

Personal Injury Protection (PIP) covers medical expenses and lost wages regardless of fault in an accident. Filing a PIP claim can affect insurance premiums and is subject to state-specific regulations.

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What is PIP Insurance? 

Personal Injury Protection (PIP) coverage is the portion of a car insurance policy that provides medical expenses and work loss coverage for you and your passengers after a car accident, regardless of fault.

💡 PIP coverage is often a requirement in "no-fault" states, as it covers your injuries no matter who caused the accident.

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You should purchase PIP coverage if:
  • State law requires it.
  • You commonly drive with passengers in your vehicle who could hold you responsible for their medical expenses if they were injured in an accident.
  • You don’t have a great health insurance plan. A robust health insurance plan makes high PIP limits less necessary. If in doubt, check with your healthcare provider.

What does PIP cover?

PIP is intended to reduce the likelihood of lawsuits after a collision. Even if you are at fault in an auto accident, medical expenses for you and your passengers will be covered up to the policy’s limit.

PIP and bodily injury coverage work together to protect everyone after a crash. Bodily injury liability helps cover the other driver’s injuries, while PIP helps cover yours.

PIP covers:
  • Medical bills, including surgical fees and rehabilitation services

  • Ambulance fees

  • Lost wages

  • Funeral expenses

  • Death benefit

PIP does not cover:
  • Vehicle damage: PIP won't cover repairs for your car.

  • Theft or whether damage: These are covered under comprehensive insurance.

  • Property damage: Liability coverage is required to cover property damage.

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PIP coverage also comes with limits

Much like other car insurance coverages, PIP has limits. These vary by state, but a PIP limit represents how much your policy will pay out in the event of a claim


Where is PIP required?

While there are about 20 no-fault states that offer some level of personal injury protection (PIP) coverage, only 12 states require it:

Other states with PIP coverage

The following states offer personal injury protection, but it is not required of all drivers. This coverage must often be waived in writing. 

At-fault states with PIP required:

Choice no-fault states

  • Kentucky
  • New Jersey
  • Pennsylvania

No-Fault Insurance: Everything You Need to Know | The Zebra

Learn about no-fault insurance laws, the states where it’s mandatory, what coverage it includes, and what you can expect to pay for premiums in each state.


How much does PIP insurance cost?

The cost of PIP insurance depends on factors such as coverage level, age, type of vehicle, your auto insurance company, and location. The data below is reflective of a 30-year-old male driver with no accident, good credit, and the owner of a 2016 Honda Civic.

Average PIP premiums per state

Updating data...

State PIP Limit Avg. PIP Premium
Arkansas 5,000 $61
Delaware 15/30 $247
Florida 10,000 $478
Hawaii 10,000 $91
Kansas 4,500 $55
Kentucky 10,000 $161
Massachusetts 8,000 $61
Michigan 250,000 $448
Minnesota 40,000 $195
New Jersey 15,000 $278
New York 50,000 $259
North Dakota 30,000 $126
Oregon 15,000 $138
Pennsylvania 5,000 $75
Texas 2,500 $58
Utah 3,000 $60
Washington 10,000 $128

Source: The Zebra

PIP premiums are added on to the 6-month car insurance rate

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Find the PIP insurance you need quickly and easily!

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PIP vs. other insurance types

Because PIP overlaps with coverages like medical payments and health insurance, it’s easy to mix them up. Here's the breakdown:

PIP can supplement your health insurance by covering deductibles and co-pays, ensuring more comprehensive protection in the event of an auto accident.

While both cover medical expenses, MedPay typically offers less coverage compared to PIP and does not cover lost wages or essential services.

Liability insurance covers damages you cause to others, whereas PIP covers your own injuries and associated costs regardless of fault.

🔎 How much PIP coverage do you need?

The amount of PIP coverage needed is often determined by your state. Though, as we've covered, you're given the choice in some places. Michigan residents, for example, can now choose their limits. In this case:

  • Consider your health insurance situation and potential medical costs when deciding on coverage limits.
  • Evaluate additional factors such as your income and essential services needs.
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Zebra tip: Stick with the at-fault system if you can:

"With a no-fault system, any claim you make will impact your insurance." says Riliey Cullip. "At least if it's an at-fault system, there is a chance that the other person is found at fault in an accident and your premiums won't be raised as a result."


Auto insurance rates after PIP claims

The amount you will pay after a PIP claim will vary considerably depending on your company and the circumstances of the claim. 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.

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Average 6-month rates after PIP claims with top companies

Updating data...

Company No claims 1 PIP claim 2 PIP claims
Allstate $1,484 $1,485 $1,524
Farmers $1,202 $1,273 $1,332
State Farm $1,178 $1,178 $1,178
Progressive $1,076 $1,077 $1,129
Nationwide $1,070 $1,070 $1,077
GEICO $949 $949 $963
USAA $831 $831 $838

Source: The Zebra

📍 Don't discount regional insurance companies

Smaller, regional car insurance companies can often offer competitive coverage at an affordable rate. If your current insurer drops you after too many PIP claims — or if you’re simply ready to see what else is out there — be sure to include local providers in your search.

Frequently asked questions: Personal Injury Protection

This largely depends on your state and the limits it sets, as limits and premiums go hand in hand. According to our data, however, Farmers and Allstate offer the most affordable PIP coverage on average.

Our sources indicate that PIP coverage adds $172 on average to your 6-month auto insurance policy. This number will vary based on your state and its limits, as well as the company you choose.

If you have the choice of including PIP coverage in your plan, it may be worth it if you don’t have a great health insurance plan. A robust health insurance plan makes high PIP limits less necessary.

See how much you could save on auto insurance with PIP—compare quotes from top insurers.

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Sources:
  1. Background on: No-fault auto insurance. Insurance Information Institute

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