Personal injury protection (PIP) vs. no-fault insurance
No-fault insurance is another name for personal injury protection. PIP coverage is required in no-fault states. A no-fault state is one where drivers involved in minor accidents don't collect compensation for losses from the driver who caused the crash. Instead, each driver's own insurer pays for medical bills and partial lost wages regardless of blame.
Personal injury protection (PIP) vs. medical payments coverage
Medical payments coverage pays for reasonable and necessary medical expenses after an accident. It covers them regardless of who is to blame.
However, in at-fault states, drivers who are responsible for a crash are required to pay for medical bills. A policyholder could get bills covered by their medical payments insurance. But their insurer could make a claim against the at-fault driver to get paid back by that driver's insurer.
PIP coverage provides payment for medical bills too. But insurers don't have the option to try to recover the money from the at-fault driver. PIP also provides broader coverage than medical payments coverage. It can pay for lost wages, for example.
PIP is usually more expensive than medical payments coverage. That's because with personal injury protection coverage, the insurer is always on the hook for medical bills. There's no chance to recover the money from the at-fault driver. An insurer offering PIP may have to pay more money after an injury because lost wages are also covered.
Personal injury protection (PIP) vs. bodily injury insurance
Bodily injury insurance pays for damages a policyholder causes to someone else if the policyholder is at fault for an accident. Auto insurance personal injury protection works differently. It pays the policyholder's medical bills and lost wages after an accident. It provides this coverage no matter who was at fault for the crash.
Do I need personal injury protection?
It can be complicated to answer the question, "do I need personal injury protection?" In 12 states, PIP coverage is required. Drivers who live in states where it is optional can decide if they want to sue another driver to collect compensation after an at-fault accident or would prefer to have PIP coverage.
Do I need PIP if I have health insurance?
Drivers may need personal injury protection insurance even if they have health insurance. Their state may require it. And PIP can also provide broader coverage than health insurance. It will pay medical bills before a health insurance deductible has been met, though you may have to pay a PIP deductible. It will also cover lost wages.
If PIP is optional in your state, you may want to purchase it if you don't have great health insurance or your deductible is high. Also, PIP is worth considering if you don't have enough in your emergency fund to cover expenses if you had to miss work due to an accident.
Which states require personal injury protection?
PIP coverage is required in the following states:
- Delaware
- Florida
- Hawaii
- Kansas
- Massachusetts
- Michigan (Except for drivers covered by Medicare)
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
- Utah
Medical pay is required in these states:
Personal injury protection coverage is optional in these states:
- Arkansas
- Kentucky
- Maryland
- South Dakota
- Texas
- Virginia
- Washington
- Washington, D.C.
How much does PIP car insurance cost?
The typical cost of car insurance can vary depending on many factors. For PIP coverage, the biggest determining factor in price is where a policyholder lives. According to insurance comparison website The Zebra, PIP could add anywhere from $54 to $428 to the annual premium of a 30-year-old male who has no history of accidents, good credit, and drives a 2016 Honda Civic.
Some states require much broader PIP coverage. In those states, premiums will be higher. Policyholders should shop around with the best auto insurance and get several quotes to get an idea what a personal injury protection policy will cost.
How do you file a PIP claim?
The process of filing a personal injury protection claim varies by state and insurer. Generally, policyholders need to quickly alert their insurer to an accident. They may have a limited number of days to report the claim, see a doctor, and get diagnosed with injuries. Policyholders may also need to receive care from specific medical providers.