Personal Injury Protection (PIP) insurance covers your medical bills and lost wages when you or your passengers are injured in a car accident. pip is optional in most states. however, 16 states require you to have a minimum amount of pip coverage. pip insurance may overlap with your health or medpay insurance, but there are times when multiple policies are recommended.
what is personal injury protection?
Personal injury protection, also known as “no-fault insurance,” pays for medical bills and rehabilitation costs for you and your passengers after you are injured in a car accident. pip also extends to cases where you are a passenger in someone else’s car, or if you are hit by a car while you are a pedestrian or bicyclist.
pip insurance is different from bodily injury liability insurance in that while pip coverage pays its own expenses, liability insurance pays for the medical expenses of drivers and passengers in other cars when you have the fault of an accident.
pip insurance may include some of the same coverage as your health insurance or medical payments policy. however, pip coverage is written specifically for auto-related injuries, which are sometimes excluded from health insurance policies, and pip insurance covers a number of additional expenses not covered by medpay insurance.
what does personal injury protection cover?
PIP insurance covers necessary medical procedures as well as reasonable expenses related to rehabilitation while recovering from an accident. The types of covered expenses vary by state and may include:
you need pip if you have health insurance
if you live in one of the 16 states where pip coverage is required, you must file a claim under that policy before resorting to your health insurance. But even if it’s not required in your state, PIP insurance offers several benefits you won’t get with a health insurance policy, like coverage for lost wages and funeral costs.
Some states, such as New Jersey and Michigan, have provisions for your PIP coverage to work in conjunction with your health insurance policy. For example, if you are injured in a car accident in Michigan, your health insurance policy may cover your physical injuries and your PIP would cover additional financial losses, such as wages you lost while in the hospital.
how do i file a pip claim?
You submit a claim like any other type of insurance, either online or over the phone. pip will help pay for necessary medical expenses immediately after the accident. but for ongoing, non-urgent claims, you will need to review or pre-approve your treatment plan with a medical expert chosen by your insurer or an outsourced medical claims processor.
Your auto insurance provider may also approve partial refunds, or even have you examined by a medical provider of your choice. the amount your policy covers may vary depending on your plan and your state. For example, in Florida, PIP coverage will only pay 80% of your medical costs.
It is critical to follow your auto insurance company’s process and schedule. In New Jersey, for example, any medical attention or treatment within the first ten days after the accident must be approved and certified by your insurer. Failure to provide the required “Treating Provider Treatment Plan” and its documentation may result in a copay penalty of up to 50%, regardless of whether the diagnostic test or procedure was medically necessary or reasonably required.
in new york, all medical bills must be submitted within 45 days of treatment to be considered for payment; otherwise, written explanations must be provided. ask your insurance agent what the pip claim process requirements are and have a copy handy in case you are injured.
how does pip work with other types of auto insurance?
If you’re injured by another driver and you have personal injury protection as part of your auto insurance policy, you’d typically exhaust your pip coverage first before looking at other options. If your medical costs exceed your policy limits, then you can file a claim under the other driver’s liability insurance policy. however, if you sustain a significant and permanent injury, or if your medical bills exceed your state’s tort threshold, you can disregard your pip coverage and file a lawsuit against the other driver.
minimum pip requirements per state
PIP insurance is sometimes called “no-fault insurance” because a minimum amount of PIP coverage is required if you live in a no-fault state. In these states, your own insurance policy will cover your expenses, even if another driver caused the accident, unless a certain limit is reached. These thresholds, called “tort limits,” can be monetary or verbal, depending on your state.
Monetary thresholds require that a person’s medical expenses or an accident exceed a state-designated amount before they can sue another driver. Verbal thresholds specify a certain type of injury that must be met before filing a lawsuit. Although the language varies by state, the verbal thresholds generally say that a person must have suffered a significant and permanent loss of bodily function, injury or disfigurement, or death. Other variables, such as whether a driver was under the influence of drugs or alcohol, can also change how liability thresholds are applied.
In addition to the 12 glitch-free states, four glitch-based states also require pip coverage. other states allow you to purchase it as optional coverage. Here are the pip insurance requirements for the states that allow you to purchase it:
*kentucky, new jersey, and the district of columbia are optional no-fault states. policyholders can choose to operate under the no-fault system or under a tort system that allows them to file a claim immediately.
how much does no-fault insurance cost
The total cost of pip insurance will vary depending on your policy’s coverage limit and deductible, as well as the state you live in.
should i get medical payments insurance in addition to pip?
both pip insurance and medpay are intended to cover medical bills after a car accident. however, medpay does not cover many of the additional expenses that pip does, including lost wages, rehabilitation services, or childcare.
because of this, if you live in a state that offers pip coverage, medpay may be unnecessary. for example, michigan requires insurers to offer unlimited pip coverage, so additional medpay coverage would be redundant.
However, if your state has a low limit on the amount of pip insurance it requires, a medical payments policy may provide additional coverage. Florida, Kansas and Massachusetts are three of those states. If you’re a resident of one of these states, consider adding MedPay insurance to your policy.
To find the typical price for personal injury protection, we compiled the statewide average rates from the three major insurers (Allstate, Geico, and Progressive) in Florida where personal injury protection is required by law. We also collect rates for medical payments coverage in Florida, Kansas, and Massachusetts.
valuepenguin’s analysis used insurance rate data from quadrant information services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.
all personal injury protection requirements were obtained from each state’s insurance departments.