What Is Personal Injury Protection?

Last Updated on December 27, 2025

Personal injury protection (PIP) is part of an auto insurance policy that can help pay medical expenses after a car accident—often regardless of who caused the crash. Depending on your state and policy, PIP may also help with wage loss, replacement services (like childcare or housekeeping), funeral benefits, and rehabilitation costs.

If you’re wondering whether PIP is required where you live, whether it’s worth paying for, or how it compares to health insurance and MedPay, this guide breaks it all down in plain English.

Note: PIP rules vary a lot by state and can change over time. Always double-check your state’s current requirements and your policy’s declarations page.

Key Takeaways

• Personal injury protection (PIP) is auto insurance coverage that can pay medical bills (and often other costs like lost wages) after a crash—frequently regardless of fault.
• PIP rules are highly state-specific: some states require it, some make it optional, and many don’t offer it at all.
• PIP typically does not cover vehicle repairs or the other driver’s property damage—those are handled by other coverages like collision and liability.
• If you already have strong health insurance, PIP may be less valuable—but it can still help with gaps like wage loss, replacement services, and quick access to benefits after an accident.

Personal Injury Protection Explained

Personal injury protection (PIP) is designed to pay certain injury-related costs after an auto accident. In many cases, it’s the coverage that kicks in first when you (or your passengers) need medical treatment—similar to what we explain in our guide to when car insurance pays for medical bills after an accident.

PIP is commonly associated with “no-fault” auto insurance systems. In no-fault (and choice no-fault) states, you typically file injury claims through your own policy first, which is why PIP is sometimes called “no-fault coverage.” If you want a deeper explanation, see how no-fault auto insurance works.

What Does PIP Cover?

PIP benefits depend on your state and insurer, but common covered expenses include:

• Medical bills (ER visits, follow-ups, diagnostics, surgery, and more)
• Ambulance services in many policies and states (related: does car insurance cover an ambulance ride?)
• Lost wages if injuries keep you from working (often with caps and waiting periods)
• Replacement services, such as paying someone to help with chores you can’t do because of your injury
• Rehabilitation and recovery-related expenses depending on the policy (see also: will auto insurance pay for rehab costs?)
• Funeral benefits in some states/policies (related: will car insurance pay for funeral costs after a fatal accident?)
• Passenger injuries in many situations (more on this here: are passengers covered by car insurance?)

Because PIP is “first-party” coverage, it’s generally meant to protect you and the people covered under your policy—not the other driver.

What PIP Usually Does Not Cover

PIP is frequently misunderstood as a “catch-all” policy. In reality, it usually does not cover:

• Damage to your vehicle (that’s typically collision coverage or comprehensive coverage)
• Damage you cause to someone else’s vehicle or property (typically property damage liability)
• Pain and suffering (non-economic damages are handled differently and often require a liability claim or lawsuit, depending on your state)
• Expenses beyond your PIP limit (once your limit is exhausted, other coverage may need to step in)

PIP vs. MedPay vs. Health Insurance

PIP, MedPay, and health insurance can all help with medical bills, but they’re not the same thing.

PIP is broader in many states because it may cover wage loss and replacement services, not just medical treatment. Medical payments coverage (MedPay) is often simpler: it typically pays medical expenses for covered people in your vehicle, but usually doesn’t include wage loss or replacement services. For a full breakdown, see what medical payments coverage is.

Health insurance may pay some of the same medical bills, but it usually won’t replace income or cover certain accident-specific benefits the same way. If you’re trying to figure out whether paying for PIP (or MedPay) is redundant, start here: do you need MedPay if you already have health insurance?

Also keep in mind: the “who pays first?” question can get complicated depending on your state’s rules and the type of claim. If you’re comparing policies, this guide can help you think it through: does health insurance or car insurance pay first after an accident?

Is PIP Required in Your State?

Some states require PIP (or a similar “no-fault” medical benefits package) as part of every auto policy. Other states make it optional, and many don’t offer PIP at all.

As of 2025, PIP (or a required no-fault medical benefits equivalent) is commonly required—or included by default unless you reject/waive it—in states like Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah.

Important: Minimums and rules can change, and some states allow you to reject or waive certain no-fault benefits. When in doubt, verify requirements with your state’s insurance department and your insurer.

How Much PIP Coverage Do You Need?

If PIP is required where you live, your first decision is usually whether to stick with the minimum or buy more (if your state and insurer allow higher limits). If PIP is optional where you live, you’re deciding whether to add it at all.

In general, higher PIP limits can make sense if:

• You have a high-deductible health plan (or limited health coverage)
• You rely on your income and would struggle with even a short period of missed work
• You drive with passengers often (especially household members)
• You want extra “buffer” coverage before liability claims, lawsuits, or health insurance sorting happens

Lower limits (or declining optional PIP) might make sense if you have strong health coverage, a healthy emergency fund, and you’re comfortable taking on more out-of-pocket risk. Just make sure you’re not creating a financial gap you can’t handle.

How to File a PIP Claim

PIP claims are usually more straightforward than liability claims, but details vary by state and insurer. A practical checklist:

1. Report the accident to your insurer as soon as possible.
2. Ask what documentation is needed (medical records, wage verification, proof of expenses, etc.).
3. Track all accident-related costs (bills, prescriptions, mileage to appointments, replacement services).
4. Follow medical timelines required by your state/policy (some states have strict treatment windows).
5. Confirm your remaining PIP limit so you know when other coverage might need to take over.

How Much Does PIP Insurance Cost?

PIP cost depends on your state, your selected limit, your driving profile, and how your insurer prices no-fault medical benefits. In some states, the minimum PIP can be a smaller line item; in others, it can be a major portion of the premium—especially with higher limits.

The easiest way to understand the real price difference is to compare quotes with and without optional coverages (or at different PIP limits, where your state allows). Start here: compare insurance quotes in your area.

FAQs on Personal Injury Protection

Final Word on Personal Injury Protection

PIP can be one of the most useful parts of an auto policy because it’s designed to pay injury-related costs quickly—often without waiting for fault to be determined. It’s mandatory in some states and optional (or unavailable) in others, so the “right” answer depends heavily on where you live and what coverage you already have.

If you’re unsure, focus on the big picture: your health insurance quality, your income risk, your savings, and how much financial stress an unexpected injury would cause. Then price out your options and choose the protection level you can afford without overpaying.