What Is PIP and Why Is It Used
PIP pays your medical bills and some lost income after an accident, regardless of who was at fault.
PIP covers you first, before fault is decided
PIP stands for personal injury protection. It's coverage on your own car insurance policy that pays for your medical treatment and part of your lost income if you're hurt in an accident, no matter who caused it.
It exists because figuring out fault can take time, and medical bills don't wait. In states that require PIP, it's meant to get your bills paid quickly instead of leaving you to wait on a liability claim against the other driver.
Whether you have it depends on your state
PIP isn't offered or required everywhere. Some states require every driver to carry it. Others make it optional, something you can add to your policy if you want it. And in some states it isn't part of the system at all, because those states handle injury claims through fault and liability insurance instead.
If you're not sure which kind of state you're in, check your policy declarations page for a line item called PIP or personal injury protection. If it's not there, ask your insurer whether it's required where you live or available as an option.
This matters more than age does here. A retired driver in a state that requires PIP has it whether they asked for it or not. A retired driver in a state where it's optional may not have it unless they added it.
What it actually pays for, and what it doesn't
PIP typically covers medical treatment related to the accident and a portion of income you lose if you can't work because of your injuries. Some policies also cover costs like funeral expenses or help around the house you can no longer do yourself, though this varies by insurer and by state.
It doesn't cover damage to your car. That's a separate part of your policy, usually collision or liability coverage depending on who caused the accident.
It also usually has a limit, a maximum amount it will pay out. Once you reach that limit, any further medical costs would need to come from another source, such as the at-fault driver's liability coverage or your own health insurance.
If you're retired and on Medicare, ask your insurer how PIP and Medicare work together after an accident. The order in which they pay can matter, and it's worth knowing before you need it rather than after.
Questions people ask about this
Do I need PIP if I already have health insurance?
In states that require PIP, you need it regardless of what health insurance you carry. Where it's optional, some drivers skip it if they have strong health coverage already, but PIP can also cover lost income and other costs health insurance doesn't touch. Ask your insurer what gap it would fill given what you already have.
Does PIP cover passengers in my car?
Generally yes, PIP covers people riding in your car when the accident happens, not just you. The exact terms depend on your policy and your state, so check your declarations page or ask your insurer who is covered under your specific PIP coverage.
Can I be sued even if I have PIP?
PIP doesn't protect you from being sued. It pays your own medical bills and lost income regardless of fault. Whether you can be sued, or can sue someone else, depends on your state's rules about fault and injury claims, which are separate from how PIP works.
Why did my insurer add PIP to my policy without me asking?
If you live in a state that requires PIP, your insurer is required to include it on every policy, so it may appear even if you didn't request it. Check with your insurer to confirm whether it's mandatory where you live or whether you can adjust the amount or decline it.
What happens if my PIP coverage runs out?
Once your PIP limit is reached, further medical costs from the accident need to come from another source. That could be your health insurance, the at-fault driver's liability coverage if fault is established, or out of pocket. Ask your insurer what your PIP limit is and what the next source of payment would be.
See what PIP coverage and limits look like from insurers in your state.
Pull out your current policy declarations page and look for a line labeled PIP or personal injury protection. If you don't see it, call your insurer and ask directly whether it's required in your state or available to add. If you do have it, ask what the limit is and what it would cover if you were in an accident tomorrow. If you're on Medicare, ask specifically how PIP and Medicare coordinate after a claim. Write down the answers so you have them before you ever need to use them.
