PIP stands for personal injury protection. PIP is extended car insurance that’s available in some states in the U.S. The coverage is usually for medical expenses. Sometimes, the insurance will cover lost wages due to an accident and other damages. This type of insurance is to cover people in an accident, regardless of the person to blame. Usually, someone makes a claim on their own insurance. Depending on the laws in the state, someone may make a claim on your PIP insurance.
Personal injury insurance is similar to Med Pay insurance. Med Pay insurance will cover medical expenses just like PIP. The difference between the two is that PIP will cover lost wages. Med Pay insurance won’t. PIP is more expensive compared to Med Pay insurance because of the extra benefits you receive.
Depending on state laws, personal injury protection may be required in some states. The types of medical treatments that are covered varies from state to state. Some states even allow for claims on workers’ compensation. Personal injury protection is sometimes the first contact for people who’ve been injured in a car accident.
If the accident wasn’t your fault, the person’s liability insurance usually pays the PIP insurance company for the losses occurred.
If you have been temporarily or permanently disabled because of the car accident, you can receive help with the tasks you are unable to complete such as household chores, grocery shopping and more. The insurance company will pay these costs up to a certain amount.
Q: What happens if I don't have PIP?
A: If you don’t have PIP and you’re in an accident that’s your fault, you’ll be responsible for the other person’s medical expenses. If you don’t have an insurance policy to cover this, you may have to pay for their medical expenses out-of-pocket.
Remember, PIP insurance isn’t available in all states. PIP limits typically range from $1,500 to $250,000. This depends on the law in the state, as well as the injuries that occurred.
Q: What are Types of Personal Injury Protection?
A: Additional coverage is available to people who reside in certain states. This type of coverage acts as an addition to the PIP coverage that you already have. Having this coverage allows you to raise your PIP limit to cover higher medical expenses caused by an accident.
Extended coverage is available in Florida only. The PIP coverage in Florida covers 80 percent of medical expenses and 60 percent of lost wages because of an accident. If you purchase additional coverage, the PIP insurance will cover 100 percent of medical expenses and lost wages. It’ll cover the maximum limit allowed on the insurance policy.
Guest coverage is only available in Kansas. This type of coverage provides expenses to those who’re passengers in your vehicle if you ever get in a car accident. Coverage is mandatory if all of the drivers on the policy have no-fault coverage.
In some states, you have to choose the type of PIP plan that you’d like. These may include:
Full personal injury protection primary is coverage for people in your vehicle only, including yourself. The option covers funeral, medical, death expenses and more.
Full PIP health primary should be purchased if you have health insurance that covers you and your passengers in a car accident. This insurance covers lost income as well as funeral and death expenses. Full PIP health primary coverage isn’t available for people that have Medicaid or Medicare health insurance. You also can’t purchase this coverage if you’re an active military member.
Medical only PIP primary is coverage that covers medical expenses for you and passengers in your vehicle if you’re in a wreck.
Medical only health primary is insurance that should be purchased if another health insurance provider is the only coverage you have for injuries to yourself and passengers in your vehicle if you’re in a wreck. This coverage isn’t available for people that have Medicaid or Medicare health insurance. If you’re an active military member, you can’t purchase this insurance.
PIP is mandatory in the following states:
- New York
- North Dakota
- New Jersey
- The District of Columbia
PIP coverage is available, but not mandatory in the following states:
- New Hampshire
- New Mexico
- North Carolina
- Rhode Island
- South Carolina
- West Virginia