What is PIP Insurance?

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By Madeline Klein

Personal Injury Protection insurance, AKA PIP insurance, can cover you and your passengers’ medical expenses after an accident. PIP insurance is sometimes referred to as “no-fault” because it doesn’t matter who is determined to be at fault, medical expenses may be covered up to the policy’s limit.

Personal Injury Protection Explained

Personal Injury Protection is an addition to your car insurance that deals specifically with medical expenses. It can be referred to by its alter-ego, “No-Fault Insurance”. This name was granted because this coverage pays out claims regardless of who is at fault for the covered accident. PIP also goes a step further and may cover lost wages, transportation to doctor’s offices, and lawn repair.

The fact that you used this coverage when you were not at fault does not ensure your premium will not go up after making the claim.

PIP Coverage vs Medical Payments (AMP Coverage)

PIP Coverage and Medical Payments are similar. However, we’d say they’re more like cousins than twins.

Medical Payment coverage may handle medical expenses such as ambulance fees, x-rays, hospital stays and nursing care. Many times, people utilize their health insurance instead of opting into Medical Payment coverage, but you should know these are not interchangeable! Medical Payments only covers you in the event of an accident. So, you can’t waltz into the doctor’s office, flash your Med Pay coverage and expect them to use it to cover your yearly physical.

PIP’s “jam” is covering MORE than Med Pay. Additional expenses may be covered such as physical therapy, lost wages, childcare, and more! Each policy can vary in terms of the benefits provided to you.

Another fun tidbit of information, you cannot have both PIP and Med Pay simultaneously! You must select one, but sometimes the decision is out of your hands. If PIP coverage is required in your state, hey, fewer decisions!

AMP and PIP Limits

Our friends at the Zebra break down the range of limits for PIP coverage, depending on the state. It will typically cover 80% of the medical bills and 60% of lost wages. These limits can range from $3,000 to unlimited and in Kansas, the limits even vary based on the type of expense!

Medical Payment limits vary based on your insurance provider and decision. Say’s limits range from $2,000-$10,000 per person!

What is Not Covered by No-Fault Accident Claims?

Various coverage options exist that can help you with the other costs due to an accident. PIP could cover medical fees such as bills, surgery, ambulances, lost wages, and rehab. PIP doesn’t cover property damage, collision costs, “other than collision” costs, uninsured or underinsured motorist costs.

That’s why these other coverages are sometimes paired with PIP.

Auto collision coverage…for damage to your vehicle.

Comprehensive coverage…for all your “other than collision” repairs such as theft, vandalism, weather, etc.

Uninsured motorist coverage…for the costs a person who doesn’t have liability insurance owes you because they caused your injuries in an auto accident.

Liability coverage…for injuries or damages you caused to other people and their property.

States where PIP Insurance is Required

PIP Insurance isn’t required by every state; however, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah all require PIP insurance. It’s important to make a mental note, if you’re taking notes, that these states have different limits. The only Say state that requires this is Kansas. (Go Kansas, way to represent!)

The PIP coverage and limits are different based on which state you live in, a common trend among insurance.

Conclusion

What should you take away? These three main points:

1. PIP Insurance = Personal Injury Protection/No-Fault Insurance.

2. PIP insurance can cover you and your passengers’ medical expenses after a covered accident, no matter who is at fault.

3. It is required in 12/50 states, but limits and coverage vary based on location and policy.

Check out more of our blogs to learn more!

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Madeline Klein is Say's Digital Content Producer. She graduated from the University of Missouri with a Bachelor of Journalism, emphasis in Strategic Communication. Her experience is in writing and digitial media. Madeline loves using her creativity to write and design new and exciting pieces of work for Say!

Posted March 10, 2020 in Insurance Know-How.