Is PIP Worth It if You Have Medical Insurance
PIP pays for things health insurance often won't, like lost wages and funeral costs, so dropping it isn't as simple as having other coverage.
It depends on what your state requires and what your health plan actually covers
If you live in a state that requires PIP, you can't drop it just because you have health insurance. The state sets a minimum amount, and your insurer has to include it in your policy.
If PIP is optional where you live, the answer turns on what your health insurance leaves out. Health insurance pays medical bills after a deductible and copays. PIP can cover that deductible, pay for lost income if you can't work, and in some states pay for things like childcare or funeral costs. If your health plan has a high deductible or doesn't cover passengers in your car, PIP fills those gaps.
Whether your state requires PIP or lets you choose
Some states require every driver to carry PIP as part of their auto policy, regardless of what health insurance they have. In those states, the question of whether it's worth it doesn't really apply. You're required to have it, and the only choice you may have is how much coverage above the state minimum to buy.
In states where PIP is optional, or where you can choose a lower amount, you're deciding whether to pay for coverage that overlaps with your health insurance. That decision depends on your deductible, your copays, and whether your health plan covers everyone who rides in your car or only you.
Check your state's requirement before you assume you have a choice. Your insurer or your state's department of insurance can tell you whether PIP is mandatory and what the minimum is.
If you do have a choice, ask your insurer to show you the cost difference between carrying PIP and dropping it, so you're comparing an actual number instead of guessing.
What your health insurance doesn't cover after an accident
Health insurance pays doctors and hospitals. It generally doesn't replace income you lose while you recover, and PIP often does. If you'd struggle to cover your bills without a paycheck for a few weeks or months, that's a real gap health insurance leaves open.
Health insurance also typically only covers you, not everyone who happens to be riding in your car when you're in an accident. PIP usually covers passengers too. If you often drive family members, friends, or carpool, that matters.
Medicare in particular pays after other coverage in an auto accident, not before it. If PIP or liability coverage from the other driver is available, Medicare expects that to pay first. Dropping PIP can shift more of the early cost onto you before Medicare steps in.
Ask your health insurer directly what it covers for an auto accident, including any deductible, and whether it covers passengers. That answer tells you what PIP would actually be replacing.
Questions people ask about this
Can I use PIP and health insurance together after an accident?
In most cases yes, the two can work together rather than one replacing the other. PIP typically pays first for accident-related medical costs up to its limit, and your health insurance can pick up costs beyond that. The order and the coordination rules depend on your state and your policies, so ask your insurer how the two would interact.
Does PIP cover lost wages if I can't work after an accident?
In many states, yes, PIP includes a portion of lost income, which health insurance does not typically cover. Whether it's included, and how much, depends on your state and the policy you chose. Check your declarations page or ask your insurer whether wage loss is part of your PIP coverage.
Will dropping PIP lower my car insurance premium?
It can lower your premium somewhat if your state allows you to reduce or decline it, since you'd be paying for less coverage. Ask your insurer for a quote both with and without PIP so you can see the actual difference for your policy rather than assuming.
What happens to my medical bills if I don't have PIP and I'm at fault?
Your health insurance would typically be the one paying your medical bills, subject to your deductible and copays. If you don't have health insurance either, you could be responsible for those costs yourself unless another coverage on your policy applies. This is worth working through with your insurer before you decide to drop PIP.
Does Medicare replace the need for PIP coverage?
No, Medicare generally does not take the place of PIP. Medicare typically pays after other available coverage for an auto accident, including PIP, rather than before it. If you carry Medicare, ask your insurer how PIP and Medicare would coordinate in your state.
See what carrying PIP would actually cost you before you decide to drop it.
Pull out your current auto policy and your health insurance summary, and find the deductible and copay amounts on each. Call your insurer and ask two things: whether PIP is required in your state, and what it would cost to keep or add it at the level you want. Call your health insurer and ask what it covers after a car accident, including whether it pays for passengers or only you. If you're on Medicare, ask your auto insurer how PIP and Medicare coordinate so you know which one pays first. Once you have those answers side by side, you'll know whether PIP is filling a real gap or paying twice for something you already have.
